Visa reason code 13.4: counterfeit goods and how to respond
Visa reason code 13.4 covers counterfeit merchandise identified by a qualified entity. Learn who files, valid defenses, evidence, and deadlines.
What Visa code 13.4 means and when it applies
Visa code 13.4, “Counterfeit Merchandise,” applies when merchandise purchased with the card has been identified as counterfeit. The cardholder’s opinion alone is not enough. The finding must come from at least one of these three sources:
- The intellectual property owner. An authorized representative of the owner may also provide the confirmation.
- A public authority. This may be a customs, law enforcement, or other government agency.
- An independent expert. The rule refers to a third-party expert, and Visa’s merchant guidelines describe that expert as neutral.
Source for the three qualified sources: Visa Core Rules §11.10.5.1, Table 11-110 (ID# 0030331). Source for describing the expert as neutral: Visa Dispute Management Guidelines for Visa Merchants, Condition 13.4, p. 42.
The cardholder does not need to have received the product. If the cardholder was told that the ordered merchandise was counterfeit, the issuer may still use code 13.4.
Source: Visa Core Rules §11.10.5.2, Table 11-111 (ID# 0030332).
Even with a qualified determination, the dispute is invalid if at least one of these four exclusions applies:
- The transaction was processed as Straight Through Processing.
- The dispute concerns Value-Added Tax (VAT).
- The disputed amount is the cash-back portion of a Visa Cash-Back transaction. The purchase portion is not covered by this exclusion.
- The transaction occurred at an Automated Fuel Dispenser.
Source for the four exclusions: Visa Core Rules §11.10.5.3, Table 11-112 (ID# 0030333).
Code 13.4 concerns the authenticity of the merchandise, not the card. If the only issue is non-delivery, see 13.1. For merchandise that was not as described or was defective, see 13.3. Code 10.1 covers fraud involving a counterfeit card.
Deadlines for each party under Visa 13.4
1 block represents 30 calendar days.
- IssuerFile the 13.4 disputeThe clock starts when one of these events occurs, as applicable: Visa processes the transaction, the cardholder receives the merchandise, or the cardholder is notified that it is counterfeit.Up to 120 calendar days
- IssuerFile the 13.4 dispute when timing starts with receipt or counterfeit noticeThe clock starts when Visa processes the transaction.Up to 540 calendar days
- AcquirerSubmit a Visa-permitted defense pathThe clock starts when Visa processes the dispute.Up to 30 calendar days
- IssuerRespond to the acquirer’s defenseThe clock starts when Visa processes the acquirer’s defense.Up to 30 calendar days
- AcquirerRespond to the issuer’s pre-arbitration attemptThe clock starts when Visa processes the issuer’s pre-arbitration attempt.Up to 30 calendar days
- IssuerAsk Visa to decide the caseThe clock starts when Visa processes the acquirer’s pre-arbitration response.Up to 10 calendar days
Who files the dispute and what happens next
The issuer, the bank that issued the card, files the 13.4 dispute in VROLVisa Resolve Online is the system where the issuer files the dispute and the acquirer submits the response and case documents.. To file the case, the issuer must provide all four records below:
- The counterfeit determination. It must include the name of the entity that notified the cardholder and validation that the entity is qualified to make the determination.
- The applicable date. This is the date the cardholder received the merchandise or was notified that it was counterfeit.
- A description of the merchandise. The record must identify the item reported as counterfeit.
- The merchandise’s location or disposition. The issuer states where the item is located.
If any of these records is missing, the filing does not meet the documentation requirements for 13.4.
Source for the issuer’s requirements: Visa Core Rules §11.10.5.5, Table 11-114 (ID# 0030335).
The issuer has 120 calendar days from one of these dates, as applicable: the Transaction Processing DateThe date Visa processes the transaction. It is one of the three dates that may start the filing period for a 13.4 dispute., the date the cardholder received the merchandise, or the date the cardholder was notified that it was counterfeit. The rule does not instruct the issuer to choose the latest date. When timing starts with receipt or notification, the dispute also may not be filed more than 540 calendar days after the Transaction Processing Date.
Source for the filing deadline: Visa Core Rules §11.10.5.4, Table 11-113 (ID# 0030334).
When the issuer files the dispute, it charges the disputed amount back to the acquirer, the institution that serves the merchant on the Visa network. If there is a valid ground to respond, the merchant gives its documents to the acquirer. The acquirer submits the Dispute ResponseThe formal response the acquirer submits to Visa with evidence for exactly one of the defense paths accepted for code 13.4. within 30 calendar days of the Dispute Processing DateThe date Visa processes the filing of the dispute. It starts the acquirer’s period to submit the Dispute Response..
If the issuer rejects the response, it may start pre-arbitrationThe stage where the issuer challenges the acquirer’s response before asking Visa to decide the case.. The acquirer responds to that attempt. If the parties still do not agree, the issuer may take the case to Visa arbitration.
Source for the flow and response deadlines: Visa Core Rules §11.2.3, Table 11-2 (ID# 0030213), §11.3.1 (ID# 0030214), and §11.10.5.6, Table 11-115 (ID# 0030336).
Before building a defense, check whether this dispute is invalidProving any one condition is enough to challenge the dispute's validity.
- The only “evidence” of counterfeiting is the cardholder’s own opinion, without a determination from a qualified entity: the intellectual property owner or its authorized representative, a customs, law enforcement, or other government agency, or a third-party expert.
- The transaction is an excluded type: a Straight Through Processing transaction, a dispute regarding Value-Added Tax (VAT), the cash-back portion of a Visa Cash-Back transaction, or an Automated Fuel Dispenser transaction.
- The dispute was processed more than 120 calendar days after the applicable date, or after the 540-calendar-day cap from the Transaction Processing Date when timing starts with receipt or notification.
Source:Visa Core Rules §11.10.5.3 Tabela 11-112 (ID# 0030333); prazos em §11.10.5.4 Tabela 11-113 (ID# 0030334)
How to reduce the risk of this code
Visa’s direct recommendation is simple: ensure that the merchandise sold is genuine. For the merchant, that work starts before the sale by selecting the supplier and verifying the product.
Source for the prevention measure: Visa Dispute Management Guidelines for Visa Merchants, Condition 13.4, p. 42.
The defense rules themselves show which records should support that control:
- Keep the item’s purchase invoices. They are required when the defense states that the merchandise was genuine.
- Link each product to its supplier. Preserve the item description and reference, along with the invoice data, to explain specifically why the counterfeit determination is wrong.
- Do not discard the records too soon. A case timed from delivery or notification may still be filed within the 540-day cap from the transaction.
Basis for these controls: Visa Dispute Management Guidelines for Visa Merchants, Condition 13.4, p. 42, and Visa Core Rules §11.10.5.4, Table 11-113 (ID# 0030334).
Evidence the merchant needs to gather
First identify which ground actually applies. The Dispute Response must prove exactly one of the four paths Visa accepts, and the selected path must be complete:
- The cardholder no longer disputes the transaction. Provide a letter or email from the cardholder stating that they no longer dispute the charge. A verbal withdrawal does not satisfy this path.
- The merchant already issued a credit or reversal. Provide documentation of the credit or reversal that the issuer did not address. The record must show the amount and the processing date.
- The dispute is invalid. Prove at least one of the four 13.4 exclusions: Straight Through Processing, a VAT dispute, the cash-back portion of a Visa Cash-Back transaction, or an Automated Fuel Dispenser transaction.
- The merchandise was not counterfeit. Provide specific written information that addresses the qualified entity’s determination and invoices that refute the claim. Both items are required; a generic denial is not enough.
Source for the four paths: Visa Core Rules §11.10.5.6, Table 11-115 (ID# 0030336). Source for the documents required for the credit, withdrawal, and authenticity paths: Visa Dispute Management Guidelines for Visa Merchants, Condition 13.4, p. 42.
If the issuer takes a complete response to pre-arbitration, it must confirm that it spoke with the cardholder about the evidence and explain why the cardholder continues to dispute the transaction. When the path used was withdrawal by letter or email, the issuer must also confirm that the cardholder disputes the transaction again.
Source for the pre-arbitration requirement: Visa Core Rules §11.2.3, Table 11-2 (ID# 0030213).
The merchant’s return policy does not change this analysis. The cardholder is not required to return merchandise identified as counterfeit. Refusing a refund only because the item was not returned is therefore not a valid defense for 13.4.
Source: Visa Dispute Management Guidelines for Visa Merchants, Condition 13.4, p. 42.
Frequently asked questions
When does a purchase qualify for Visa chargeback code 13.4?
It is the “Counterfeit Merchandise” dispute condition. It applies when merchandise the cardholder received or only ordered was identified as counterfeit, meaning it infringes intellectual property. The code also applies when the cardholder never received the merchandise, provided they were told the ordered item was counterfeit.
Who must confirm that the merchandise is counterfeit?
The confirmation must come from a qualified entity. This may be the intellectual property owner or its authorized representative; a customs, law enforcement, or other government agency; or a third-party expert, described in Visa’s merchant guidelines as a neutral third-party expert. The cardholder’s opinion alone is not enough. The issuer must document the entity’s name and validate that it is qualified to provide the notice.
Can the merchant require the counterfeit merchandise to be returned?
No. Visa’s merchant guidelines state that the cardholder is not required to return counterfeit merchandise. The merchant’s return policy has no bearing on a 13.4 dispute. Refusing a refund because the item was not returned is therefore not a valid defense.
What documents show that the merchandise was not counterfeit?
The merchant must provide specific written information that refutes the claim and addresses the determination made by the qualified entity named in the dispute. The merchant must also provide invoices. Visa’s guidelines list the two together (“specific information and invoices”), so both are treated as required. A generic denial is not enough.
Which date starts the deadline to file a 13.4 dispute?
The issuer has 120 calendar days from one of these dates, as applicable: the Transaction Processing Date, the date the cardholder received the merchandise, or the date the cardholder was notified that it was counterfeit. The latter two dates may not exceed 540 calendar days from the Transaction Processing Date.
What deadline should the merchant use to respond to 13.4?
Visa’s deadline applies to the acquirer: it has 30 calendar days from the Dispute Processing Date to submit the Dispute Response in VROL. The acquirer’s internal deadline for the merchant is often much shorter. Confirm it before assuming the full 30 days are available.
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