Visa Reason Code 13.4: Counterfeit Merchandise

A 13.4 notice is bad news with a clear path. Someone says the goods you sold were fake, and Visa is taking the money back. But the code also tells you exactly what proof can win the case back. If you bought your stock from a real source, you can fight this.

What is Visa reason code 13.4?

Visa sorts disputes into four categories: 10 Fraud, 11 Authorization, 12 Processing Errors and 13 Consumer Disputes. Code 13.4 sits in the last group, the consumer disputes.

Visa dispute condition 13.4 is Counterfeit Merchandise. It is used when the cardholder claims the item they bought from you was a fake, not the real brand.

This is not a code the cardholder can throw around on their own. Under 13.4, the goods were identified as counterfeit by the brand owner, a government agency, or a third party expert. Someone with standing looked at the item and called it fake. That is what makes 13.4 different from a simple complaint.

When does a 13.4 dispute apply?

The code fits a narrow set of facts. It applies when a buyer received goods, and an authority on the brand then said those goods were counterfeit.

Say a customer buys a designer handbag from your store. They take it to the brand's own boutique, and staff there say it is a fake. That customer now has grounds for a 13.4 dispute.

Compare that with a claim that the item was broken, or not what was promised. Those claims fall under a different code, such as 13.3, not as described or defective. If your notice says 13.4, the fight is about authenticity, not quality.

What evidence must the merchant provide?

For a Counterfeit Merchandise dispute, send specific information and invoices showing the goods were genuine. That is the core of your defense.

Your invoices are the heart of it. You need papers that trace the item back to a real source. That means purchase records from the brand itself, or from an authorized distributor.

Good evidence includes:

• Invoices from the brand or its authorized distributor, showing the item you sold
• Receipts that match the quantity and model of the item in the dispute
• Proof of your relationship with the supplier, such as a reseller agreement
• Any authentication the brand gave you when you bought the stock

A receipt from a random wholesaler is weak. If your supplier cannot show where they got the goods, your case is thin.

Visa dispute evidence must be easy to read and in English, or come with an English translation. Translate foreign invoices before you send them.

How to respond to a 13.4 chargeback

First, read the notice. If you need help finding the code or the deadline, see how to read a chargeback notice.

Then decide. A merchant can accept a Visa dispute, or reject it by sending supporting documents to its card processor. If your invoices are solid, reject it.

Build your response around the invoices. Label each one. Show which invoice covers the disputed item. Make it easy for the reader to connect your papers to the sale.

Do not wait. Each step of a Visa dispute has a set time limit, so a late answer can lose the case. Mark the deadline the day the notice arrives.

One more thing to know. An acquirer may respond only once to the original Visa dispute. You get one shot at this round, so send everything at once. Do not hold back a document for later.

Common mistakes to avoid

Sending a delivery receipt as your main proof. Proof of delivery shows the item arrived. It says nothing about whether it was real. In a 13.4 case, delivery records do not answer the claim.

Arguing with the customer instead of the code. A long letter about how good your store is will not help. The case turns on your invoices, not your reputation.

Waiting past the deadline. If the merchant does not respond in time, the dispute stands and the money stays gone.

Sending messy or untranslated papers. Hard-to-read evidence may be ignored. Clean scans, clear labels, English text.

What happens after you respond

If your proof is strong, the issuer may drop the case. If it does not, the case can move to a later round. To see how those rounds work, read what happens after you answer a chargeback.

Keep a copy of every invoice and paper you send. If the dispute returns in a later round, you will want that file ready.

Sources

• usa.visa.com
• usa.visa.com