Navigating chargebacks can feel like a maze for both businesses and customers, especially with strict deadlines shaping every step. Chargeback time limits may vary from one card network to another, so it’s important we specifically tackle Visa’s rules (as it may be tricky for others to follow) in order to resolve disputes efficiently.
In this guide, let's break down everything you need to know about Visa chargeback time limits in 2025, from filing deadlines to merchant response windows.
How Does the Visa Dispute Process Work?
Visa disputes start when a cardholder questions a transaction and asks their bank for a refund. Here’s how the process unfolds step-by-step.
The customer files for a dispute
The chargeback timeline begins on the transaction processing date. Cardholders typically have up to 120 days from the transaction or the expected delivery date to initiate a dispute. The reason for the chargeback determines how long customers have to file. Common reasons include:
- Fraud: The customer claims they didn’t authorize or participate in the transaction.
- Late presentment: Visa cannot verify that the transaction was processed within 30 days.
- Incorrect purchase amount: The customer believes they were charged an incorrect amount.
- Duplicate processing: The cardholder was charged more than once for the same purchase.
- Canceled recurring transactions: The customer requested to cancel a subscription, but the business continued charging them.
For example, a customer who notices an unauthorized transaction on their bank statement might file a fraud chargeback, claiming their card was compromised.
The merchants have to respond
Once a chargeback is filed, the merchant must act quickly. Visa gives businesses 20 days to submit a response. This response must include evidence to prove the transaction was valid or to counter the customer's claim. The exact evidence needed depends on the reason code, but common examples include:
- Email exchanges with the customer
- Customer details, like IP addresses or account activity logs
- Proof of delivery, such as tracking numbers or delivery confirmations
- Documentation showing the customer accessed or used digital products
- Clear terms of service and refund policies
- Signed payment authorizations
- Records confirming the customer received the goods or services
For instance, if a customer disputes a subscription charge, the merchant can provide proof the customer agreed to the subscription terms and continued using the service after the charge was made.
Pre-arbitration begins
If the evidence provided doesn’t resolve the issue, the chargeback moves into the pre-arbitration phase. This is essentially a second round of negotiation between the cardholder’s bank and the merchant’s bank. During this stage, both sides review the evidence again to try to settle the dispute without escalating further.
If there's no resolution, it escalates to arbitration
If pre-arbitration fails, the dispute escalates to Visa’s arbitration process. Visa acts as the final decision-maker, reviewing the evidence from both parties and delivering a binding ruling. Ultimately, preventing chargebacks is key for merchants. However, these disputes are inevitable. Arbitration is not cheap, with fees adding up quickly, so resolving disputes before this stage is highly recommended.
How Long Should Cardholders File for a Visa Dispute?
Cardholders usually have 120 days to file a dispute with Visa, starting from the transaction date or the expected delivery date. This time frame depends on the reason for the chargeback. For instance, if someone claims fraud, the clock starts ticking on the day of the transaction. However, for disputes involving delayed or undelivered goods, the timeline may begin on the expected delivery date instead.
How Long Do Merchants Have to Respond to a Visa Dispute?
Merchants have 20 days to respond to a chargeback after it has been filed. This tight deadline means businesses need to act quickly to gather and submit evidence to support their case. The evidence could include proof of delivery, transaction records, or customer communication.
Visa Chargeback Time Limit Exceptions
Reason Code 13.1: Services Not Provided or Goods Not Received
This applies when goods or services are expected after the transaction date. For instance, if someone buys concert tickets a month before the event, the chargeback timeline depends on specific factors:
- If no delivery date is specified, the clock starts from the transaction date.
- If goods or services are returned due to late delivery, the time limit begins when the cardholder attempts to return them.
The dispute must be processed within 120 days of the expected delivery date or the date the cardholder learns the goods or services will not be provided. However, there’s an overall limit of 540 days from the original transaction date.
Example: A customer pre-orders a gadget, but the delivery is delayed. The customer requests a refund, which the merchant does not process. The time limit for filing the dispute depends on when the delivery was expected and when the customer requested a refund.
Reason Code 13.3: Not as Described or Defective Merchandise
When goods or services are not as described or are defective, the timeline starts from either the transaction date or the date the cardholder received the unsatisfactory goods or services.
Example: A customer buys a new phone, but it arrives with a cracked screen. The 120-day window starts on the day they received the defective item, not the purchase date.
Reason Code 13.6: Credit Not Processed
If the merchant fails to process a credit or refund, issuers must wait at least 15 calendar days after the credit receipt date to initiate a dispute. However, the chargeback must be filed no later than 120 days from either:
- The date the transaction was processed.
- The date on the credit receipt (or the date the customer returned the merchandise if the receipt is undated).
Example: A customer returns a defective product and receives a credit receipt, but the refund doesn’t show up in their account. The bank must wait 15 days before filing a chargeback but cannot exceed 120 days from when the merchandise was returned.
Keep in mind that within the next few months, Visa is revamping its VAMP program, which entails a new set of rules and a much more simplified process.
Frequently Asked Questions
Can a chargeback be filed after the time limit expires?
No, chargebacks cannot be filed after the time limit has passed. Visa typically gives customers up to 120 days from the transaction or expected delivery date to initiate a dispute, depending on the reason code.
What happens if I miss the deadline to respond to a chargeback?
If you miss the 20-day window to respond, the chargeback is automatically ruled in favor of the customer. This means the disputed amount is deducted from your account, and you lose the chance to present evidence or recover the funds.
Do chargeback time limits apply to both card-present and card-not-present transactions?
Yes, the time limits apply to both types of transactions. Whether the purchase was made in person or online, the same rules for filing disputes and responding to chargebacks apply. However, card-not-present transactions, like those in e-commerce, often face a higher risk of disputes due to fraud claims.
Can merchants request an extension to submit evidence during representment?
No, Visa does not offer extensions for representment deadlines. Merchants must gather and submit all evidence within the 20-day response window. To stay on top of these deadlines, it’s best to use tools or services that automate chargeback management and keep you organized.
Does Visa notify merchants about approaching deadlines?
Visa does not directly notify merchants about deadlines. Instead, notifications usually come through your payment processor or acquiring bank. It’s important to monitor these alerts closely and act quickly to avoid missing critical deadlines.
