13.2 – Cancelled Recurring Transaction
Why did I receive this dispute?
The cardholder claims you processed a recurring transaction after they requested a cancellation or you processed a recurring transaction on an account that had been closed.
How long can the issuer wait to file a dispute?
The maximum amount of time that can pass between the transaction processing date and the dispute processing date is 120 calendar days.
What compelling evidence is needed to respond?
- If you fulfilled the cancellation request but services were used before the cancellation, provide documentation that proves the charge covers services used after the last billing cycle but before cancellation.
- If the dispute is invalid, provide documentation that proves the reasoning: the transaction was part of an installment payment plan or the transaction wasn’t a recurring transaction.
- If you have already processed a refund for the transaction in question, provide documentation that proves you have credited the cardholder’s account.
- If the cardholder no longer wishes to dispute the transaction, provide documentation that proves the issue has been resolved.
How can I avoid this dispute in the future?
- Make sure qualified cancellation and non-renewal requests are fulfilled promptly.
- Send a notification after you’ve cancelled the recurring payment.
- If new fees are incurred after the cancellation, communicate with the cardholder about how those charges should be handled.
- Clearly and concisely communicate your cancellation policy and make it easy for customers to find the information.
- Remind customers of upcoming charges, especially if a significant amount of time passes between each recurring billing cycle.
- Use Visa Account Updater to replace outdated cardholder information with new data before you process the next recurring transaction.