Visa · Consumer Disputes
Reason code 13.4: Counterfeit Merchandise
The cardholder claims the merchandise received was counterfeit, meaning it infringes intellectual property rights or was passed off as genuine branded goods when it was not. The claim may originate from the customer's own assessment, a third-party appraisal, or notification from the brand owner. This code carries reputational weight beyond the individual dispute because it alleges illegal goods, not merely disappointing ones.
Issuer filing window
120 days from the transaction processing date
Merchant response window
typically 20-30 days to respond, depending on the acquirer
Why 13.4 chargebacks happen
- A dropship or marketplace supplier substituted fake branded goods without the merchant's knowledge.
- The merchant knowingly sold replicas while marketing them as authentic.
- Gray-market or parallel-import goods lacked the packaging or verification markers customers use to confirm authenticity, prompting counterfeit suspicion.
- A customer had the item appraised, for example a handbag or watch, and the appraiser deemed it fake.
- Brand-protection teams test-purchased from the merchant and the cardholder's issuer was notified of the finding.
How to fight a 13.4 chargeback
- Provide authenticity documentation: authorized distributor agreements, supplier invoices tracing to the brand's supply chain, and certificates of authenticity for the specific goods.
- Submit serial numbers, batch codes, or authentication service results for the item shipped.
- Challenge the basis of the counterfeit determination by requesting the cardholder's supporting evidence, such as the appraisal the issuer relied on.
- Show the product listing accurately identified the goods, including cases where items were explicitly sold as compatible or generic rather than branded.
- Do not fight cases where your supply chain cannot prove authenticity; losing a 13.4 with weak sourcing evidence on record is worse than conceding.
How to prevent 13.4 chargebacks
- Source branded goods only from authorized distributors and keep the paper trail for every SKU.
- Audit dropship suppliers with test purchases, since you are liable for what they ship under your name.
- Never describe replica, inspired-by, or compatible products in ways that imply brand authenticity.
- Record serial or batch numbers at fulfillment so you can tie any disputed item back to a verified supply chain.
- Drop suppliers immediately on the first authenticity failure rather than waiting for a pattern.
Frequently asked questions
- The customer claims my product is fake but it is genuine. How do I prove it?
- Build the chain: supplier invoices tracing to an authorized distributor, the item's serial or batch number, and any manufacturer verification for that unit. Ask, via your acquirer, for the evidence behind the counterfeit determination so you can rebut it specifically. Merchants with authorized-channel sourcing and unit-level records win these; merchants with generic supplier receipts from unvetted wholesalers usually cannot.
- I sell clearly labeled replicas. Can I still get 13.4 chargebacks?
- Yes, and worse. Honest labeling may help against an individual dispute from a customer who knew what they bought, but selling counterfeit goods violates card network rules regardless of disclosure, and the disputes will surface the activity to your acquirer. Expect termination and MATCH listing rather than a manageable dispute stream. This category is not sustainable on card rails.
- Am I liable if my dropship supplier shipped fakes without my knowledge?
- Yes. You are the merchant of record, and both the cardholder dispute and any brand-owner action land on you. Your recourse against the supplier is contractual and often practically worthless across borders. Test purchases, supplier vetting, and immediate termination of any supplier who fails an authenticity check are the only real protections.
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