Damaged-in-Transit Disputes (Visa 13.3): A Merchant Playbook
Written by Jazmin A., Compliance Auditor
How Visa's "not as described or defective" code treats items that arrive broken, what evidence helps, and where shipping insurance fits.
Back to the VAMP guideKey takeaways
- Visa 13.3 covers items "received damaged or defective," plus items not as described and quality complaints.
- Visa says your return policy "has no bearing" on 13.3 disputes.
- Showing the customer agreed to and received a replacement is one of Visa's listed remedies.
- Shipping insurance can help only with damage that happened in transit, and only for buyers who opted in. It does nothing for defects or "not as described" claims.
- A 13.3 dispute counts toward VAMP even if you win or refund.
What is a Visa 13.3 dispute?
Reason code 13.3 is a consumer (non-fraud) dispute. Visa's dispute guide includes the case where "The merchandise was received damaged or defective." The same code also covers merchandise that doesn't match its description and disputes about quality.
That breadth matters. Only one slice of 13.3 is a shipping problem:
| 13.3 situation | Shipping problem? | Can shipping insurance help? |
|---|---|---|
| Box crushed, item broken on arrival | Yes | Yes, if the customer opted in and files a claim instead of a dispute |
| Item works badly or fails after a week | No (defect) | No |
| Wrong color, size or material vs the listing | No (not as described) | No |
| Customer says quality is poor | No (quality) | No |
How long does a customer have to file a 13.3 dispute?
Chargebacks911 reports a limit of 120 days from the transaction date or the date the goods were received. Visa changed some 13.x rules for disputes processed on or after October 19, 2024, so confirm current timing with your acquirer.
Your return window doesn't shorten this. Visa's guide is direct: merchants' "return policy has no bearing on disputes that fall under this dispute condition."
How do you respond to a damaged-in-transit chargeback?
Visa lists these merchant remedies for 13.3, among others:
- Refute the claim with the invoice or contract showing what was sold.
- For quality disputes, provide a neutral third-party opinion.
- Show the cardholder agreed to a repair or replacement and received it.
Evidence to keep for every fragile or high-value order
- Pack-out records: the packaging used and, for higher-value items, a photo of the sealed box before handoff.
- Carrier scans showing the package's path and delivery date.
- Customer messages, including any photos they sent and what you offered.
- Replacement proof: the replacement order, its tracking and delivery confirmation.
Does a damaged-item dispute count toward VAMP?
Yes. Visa's VAMP ratio is fraud reports plus disputes, divided by settled card-not-present transactions in the same month. Since Visa's May 2025 revision, all disputes count, fraud and non-fraud, so a 13.3 dispute adds one event to the numerator.
- Winning doesn't remove it. Monitoring programs "don't consider dispute outcomes," according to Stripe.
- Refunding after the dispute doesn't remove it either.
- It counts when Visa receives it. A damage dispute on an order from three months ago lands in this month's count.
- The exception: a non-fraud dispute resolved through Rapid Dispute Resolution, in the same data extract, is excluded.
Since April 1, 2026, a US merchant is "Excessive" at a ratio of 1.5% or more with at least 1,500 counted events, and your acquirer may apply stricter limits. Read What Is Visa's VAMP? for the full rules.
How do you prevent damaged-in-transit disputes?
- Pack for the trip. Match packaging to the item's fragility and weight, and review which products generate damage complaints.
- Make reporting damage easy. Tell customers in the delivery email what to do if something arrives broken: keep the packaging, take photos, contact you.
- Offer clear, opt-in shipping insurance. InsureShip covers loss, damage and theft up to $5,000 per shipment. Show the price and coverage, unchecked by default. InsureShip recommends, and configures by default, an opt-in (unchecked) offer.
- Link the claim form in order emails. A covered customer with a broken item can file a claim online instead of disputing. See how to file a shipping insurance claim.
- Replace or refund fast for uncovered orders. A refund before a dispute prevents it. A refund after a dispute doesn't remove it.
- Use pre-dispute tools. Non-fraud disputes resolved through Visa's Rapid Dispute Resolution in time are excluded from VAMP. Ask your processor.
Where shipping insurance stops helping
Helps
Transit damage on covered orders, when the customer files a claim before going to the bank. It also reduces what you spend on replacements.
Doesn't help
Defects, "not as described" listings, quality complaints, buyers who didn't opt in, disputes already filed, and any fraud dispute or fraud report. Fix those with accurate listings, quality control and fraud tools.
For a broader view of how refunds and claims interact, read does shipping protection reduce refunds?
Frequently Asked Questions
Which Visa reason code covers items damaged in shipping?
Usually 13.3, Not as Described or Defective Merchandise/Services, which includes merchandise "received damaged or defective."
Can I deny a damage dispute because the return window closed?
Not on that basis alone. Visa says the return policy has no bearing on 13.3 disputes. This is general information, not legal advice.
Does sending a replacement help me win?
Yes. Showing the cardholder agreed to a replacement and received it is one of Visa's listed remedies. It won't take the dispute out of your VAMP count.
Does shipping insurance cover defective products?
No. Shipping insurance covers loss, damage and theft in transit. Defects, quality and "not as described" problems are outside it.
Do damaged-item disputes count toward VAMP?
Yes. Every dispute counts, fraud or not, regardless of outcome, unless a non-fraud dispute is resolved through a pre-dispute tool like RDR in time.
Does the shipping insurance charge count toward my VAMP ratio?
No. The insurance charge is processed on InsureShip's merchant account, so it is not counted in your sales or your VAMP ratio. This only describes which merchant account the charge falls under. It is not a way to lower your ratio: disputes and fraud reports on your own orders count the same either way.
Turn a broken box into a claim, not a chargeback
InsureShip adds opt-in shipping insurance at checkout, licensed nationwide, with claims filed online. Established in 2009. Underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024). Pricing averages about $1 per order but varies.
Talk to InsureShipSources
Last checked October 8, 2026. General information, not legal or financial advice. Visa Dispute Management Guidelines (2024) · Visa VAMP fact sheet (2025) · Stripe: monitoring programs · Chargebacks911: dispute time limits · Checkout.com: VAMP · The Hartford: Navigators fact sheet (Apr 2025)