Understanding Visa Chargeback Reason Code 13.1: Merchandise/Services Not Received
Visa Reason Code 13.1 applies when a cardholder pays for goods or services but claims they never arrived or were not made available as agreed. The code covers in-store, remote, and digital purchases, and it sits within the consumer dispute category. Knowing what triggers it, how to answer it, and how to stop it protects revenue and keeps customers satisfied.
Key Takeaways
- What it means: A consumer says the item or service did not reach them by the promised date.
- Causes: Late delivery, no delivery, billing before shipment, or friendly fraud.
- How to respond: Supply proof of fulfilment, agreed dates, refunds, or cardholder withdrawal.
- How to prevent: Communicate delays, ship on time, and use tracking. Subscribe to chargeback alerts.
What is a Visa Reason Code 13.1 Chargeback?
Reason Code 13.1 sits in Visa’s “Consumer Disputes” group. This code occurs when the cardholder claims that merchandise or services were not received by the collection or delivery time agreed. The dispute may involve anything from a missed parcel to an online subscription that never activates. It also covers pay-at-pickup orders that are not ready when the buyer arrives.
Before a dispute can move forward, Visa rules say the customer should first ask the merchant to resolve the matter. However, some issuers file straight away. The issuer will debit the transaction amount from the merchant and give the provisional credit to the cardholder. The merchant’s aim is to prove that the goods or services were, in fact, supplied. They can also win a dispute by proving the claim falls outside Visa rules.
Primary Causes for a Code 13.1 Chargeback
Genuine cases tend to arise due to issues with fulfilment. For example, an item never left the warehouse, was sent to the wrong address, or arrived after the promised delivery time. Practices such as debiting customer cards too early or making sales before goods are in hand can also trigger 13.1 claims.
Friendly fraud is another common cause. Buyers may have received the goods, but claim they never arrived. Or they may file a dispute early, even if the promised delivery date has not yet passed. Criminal fraud is also relevant to this type of dispute. "Porch piracy" is one such example, where goods are stolen from outside a home or business following successful delivery. The cardholder is left assuming the delivery never happened and files a dispute accordingly.
For service providers, the risks are slightly different. Most claims arise if the promised work or services are delayed, or delivered incompletely or to a lower standard than expected. Service cancellation without notice can also cause this type of dispute.
Time Limit for Disputing a Visa Reason Code 13.1 Chargeback
Visa gives issuers up to 120 calendar days from either the processing date or the last date the buyer expected delivery to raise the dispute, capped at 540 days from the original transaction. If no delivery window was set, the issuer must wait 15 days after the sale before filing.
Where goods are delivered late and later returned, the issuer must again wait 15 days from the return. Once the chargeback arrives, the acquirer passes it to the merchant, who normally has 30 days to respond with compelling evidence to fight the case. Missing the response window means the chargeback stands by default, and the revenue is lost.
What 13.1 Means for Consumers & Issuers
For consumers, Reason Code 13.1 is a safety net. If a parcel is lost or a service never starts, they can recover funds without long legal action. The issuer acts as referee, crediting the account quickly and then asking the merchant to justify the charge.
Issuers must check that the claim is within the time rules and that the cardholder tried to resolve matters first. They also remind customers that cash-back portions on mixed transactions do not qualify and that disputes must be for the full purchase amount only. If evidence later shows the goods were received, the issuer will reverse the credit, so honesty serves the cardholder’s own interest.
What 13.1 Means for Merchants
Every 13.1 case removes income, adds fees, and raises dispute ratios, harming processing terms. Even when the merchant wins, time and labour costs rise. Inventory may be lost if a buyer keeps goods after friendly fraud. Repeated lapses in delivery can erode brand trust and invite stricter monitoring by acquirers.
On the positive side, the code is often easy to contest when proof of delivery, carrier scans, signed receipts, or system logs show proper fulfilment. Effective record-keeping is therefore crucial. Having the right evidence to hand can turn many cases into quick reversals, thereby limiting financial risk and protecting revenue.
How to Respond to a Code 13.1 Chargeback
Start by reading the cardholder’s claim and matching it to your records. Gather clear, dated evidence. This can include carrier confirmation showing delivery to the correct address, signed if possible. For service-based claims, service logs or access records can prove the buyer used the service. You can also include screenshots or emails confirming the agreed delivery or activation date. For early disputes, where the customer filed a claim before, these can prove that the dispute came before the expected delivery date.
If you have already credited the card, include receipts to evidence the refund. If the customer has since withdrawn the claim, provide the relevant written or emailed confirmation. Send the file to your acquirer within the 30-day window. Keep explanations brief, factual, and free of emotive language. If the investigation shows you did miss the deadline or cannot supply the goods, accept the chargeback promptly. Arguing without evidence prolongs the case and increases costs unnecessarily. It can also damage trust in your business for both the acquirer and the customer.
Proactive Prevention: The Ultimate Defence
Fast, accurate fulfilment is the best protection against 13.1 disputes. Post realistic delivery windows, wait to bill until goods ship, send tracking links, and tell customers straight away if delays emerge. Signature delivery on high-value orders, ready-for-pickup alerts, and clear cancellation terms reduce confusion and complaints. For an early-warning system, try out chargeback alerts, which notify you when a dispute is filed and give you extra time to offer a refund or replacement before a chargeback is finalised. Acting early keeps relationships healthy and revenue intact.
