Understanding Visa Chargeback Reason Code 13.5: Misrepresentation
Visa Reason Code 13.5 arises when a cardholder claims a merchant misrepresented key information about a purchase. Their position is that the goods or services promised did not match what was delivered. The issuer therefore reverses the sale. Clear descriptions and honest marketing help stop these chargebacks and protect revenue.
Key Takeaways
- What it means: The cardholder believes key details were misstated or hidden at the time of sale.
- Causes: Misleading claims. Unclear terms or incomplete information. Friendly fraud.
- How to respond: Gather proof that the offer was accurate or a refund was already given. Send it to your acquirer in good time.
- How to prevent: Give precise product information. Keep thorough records. Try out chargeback alerts for early warnings.
What is a Visa Reason Code 13.5 Chargeback?
Reason Code 13.5 falls under “Consumer Disputes” and refers to alleged misrepresentation. The dispute is not about a product arriving damaged; it is about the buyer feeling misled in the first place. Visa introduced this code when it retired the older 53 “Not as Described” category. The aim was to draw a sharper line between quality issues and misleading claims. If the merchant cannot prove that the description was fair, the transaction is refunded.
Transactions for travel clubs, debt relief programmes and investment schemes are common triggers. However, any sale, digital or physical, can potentially be affected. Visa also ignores a merchant’s refund policy for these types of disputes. That makes Code 13.5 especially sensitive. One inaccurate sentence on a checkout page can overturn an entire order. Knowing what the code covers is the first step toward a strong defence.
Primary Causes for a Code 13.5 Chargeback
Legitimate code 13.5 cases tend to stem from inflated or misleading marketing claims or omitted facts. For example, a web page or video advert that overpromises on the features or capabilities of a product. If goods or services are sold over the phone, the recorded script must match the written terms. If the salesperson failed to mention a charge or glossed over important terms, then a dispute is likely.
Some business sectors face higher risk because outcomes are hard to prove in advance, or salespeople go too far with their claims. Timeshare resales may hint at high rental income. Debt consolidators may understate total interest. Technical-support firms may promise permanent fixes. In each instance, the cardholder later claims the offer was “too good to be true.” Friendly fraud also plays a part. A customer who simply changes their mind may misuse this code to speed up the refund process.
Time Limit for Disputing a Visa Reason Code 13.5 Chargeback
Visa sets two time limits for Code 13.5. The cardholder has 120 calendar days to raise a dispute. This is counted either from the processing date or from when goods or services were received. Either way, the claim must happen within 540 days of the original transaction. Once the issuer files the chargeback, the acquirer forwards it to the merchant, who then has 30 days to respond. Missing that window means automatic acceptance of liability.
It's advisable to assign someone internally to keep track of the 30-day window and prioritise responding. Bank holidays, weekends, and other non-working days count, so it's easy for the deadline to creep up without taking action. Fast document retrieval, centralised record keeping and prompt communication are key.
What 13.5 Means for Consumers & Issuers
For consumers, Code 13.5 acts as protection when sellers' promises fall short. It lets them recover funds without navigating lengthy civil claims. Because the code targets misleading statements, many buyers feel justified using it even for minor issues. That includes hidden charges, unexpected recurring bills, or outcomes below advertised performance.
Issuers, meanwhile, must balance cardholder satisfaction with Visa rules. They rely on clear proof, screenshots of webpages, dated terms, or correspondence. If a cardholder provides persuasive evidence, the issuer will initiate the chargeback. High volumes of 13.5 disputes can flag merchants as risky. This may lead to further scrutiny or regulatory reporting. However, the same is true in reverse. A pattern of unfounded claims can alert issuers to flag serial friendly-fraud customers.
What 13.5 Means for Merchants
For merchants, a Code 13.5 notice carries immediate financial stakes: the sale amount is debited and may include extra fees. Repeated incidents inflate dispute ratios and threaten processing privileges. Because Visa disregards refund policies in these cases, even generous return terms may not stop the chargeback. There's also the reputational damage to consider, which can result in unwanted customer churn.
Merchants must view every claim, banner ad and checkbox disclosure as potential evidence. High-risk verticals, such as investment, should train staff to explain terms in clear language. Extended scripts or dense legal paragraphs will not convince a reviewing bank analyst. Proper records, including call recordings and timestamped screenshots, form the backbone of defence. The objective is simple: protect revenue without sacrificing truthful, compelling marketing.
How to Respond to a Code 13.5 Chargeback
First, read the chargeback memo to isolate the specific misrepresentation claim. Then gather any material that contradicts the allegation. Product pages showing accurate specs can prove that the goods were as described. Email chains confirming the customer understood the offer are evidence of an informed purchase.
Sometimes complaints are actually based on quality—say, the colour or build of an item. In this case, explain that this falls outside 13.5 and cite the clause in the Visa rules that separates quality from description. Provide statements or screenshots demonstrating full disclosure of fees, terms and limitations.
Where the cardholder has retracted the complaint, attach their signed statement. Package these documents into your acquirer’s format and respond within the 30-day window. Keep language factual and concise; emotional arguments carry little weight. A well-structured rebuttal helps win individual cases in the short term. Long-term, it also shows issuers that your business controls its processes, thereby reducing future scrutiny.
Proactive Prevention: The Ultimate Defence
Honest, transparent marketing is the best protection. Review every ad, checkout page and customer script for clarity and accuracy. Post terms in prominent places and obtain explicit consent before billing. Maintain swift, friendly support so unhappy buyers come to you first, not their bank. You can also try out chargeback alerts for early warnings of any issues. This gives you space and time to resolve an issue before a formal chargeback is applied.
