Back in March, we mentioned that a change to the Visa dispute process was on the horizon. That change has finally taken effect. As of April 13, 2018, Visa moved to a new dispute process called Visa Claims Resolution (VCR). This change was designed to simplify the dispute process and deviates from the existing process in some key areas.
There are five key changes.
- The time frame for merchants to respond is shortened from 45 days to 30 days.
- Certain invalid chargebacks will be automatically rejected before processing.
- All cases will be routed through one of two workflows, Allocations or Collaborations.
- The previous 22 reason codes are consolidated into four basic dispute categories.
- Merchants will only be allowed to challenge fraud and authorization disputes if they have clear and definitive evidence or “compelling evidence.”
You can read more in-depth about these changes by reviewing Visa’s publication, Dispute Management Guidelines for Visa Merchants.
If you have any questions on how to process your disputes, please contact us.
Visa: Dispute Resolution Update
Chargebacks are part of a decades-old process that hasn’t changed much since its inception in the mid-70’s. While adequate for its time, the existing system is not flexible enough to handle the volume and complexity of the contemporary payments industry.
As of April 15, 2018, Visa is attempting to streamline and speed up the overall dispute process. Visa’s new process is called VISA Claims Resolution (VCR). Many of these changes will happen behind the scenes. However, there are a few items that may impact you as a business owner.
Currently, the average dispute takes around 46 days to complete while more contentious disputes take over 100 days. The new process is expected to conclude disputes in under 31 days. This will be done by reducing timelines, touch points and processes from both the card issuing and merchant sides of the industry. The notices that are sent to you will continue to have the deadline date clearly posted, so please respond promptly.
Visa will be consolidating 22 dispute reason codes down to just four categories. The information provided to you in each of these four categories will be just as robust as before, although it may require you to take different actions depending on the category of the dispute. The information provided to you will help you understand the reason for the dispute and how to respond. Pay special attention to the required documentation.
Another benefit to the business owner is that Visa will be blocking invalid disputes from entering the dispute system if they don’t meet new data requirements from the issuing side.
As always, it’s important to pay attention to dispute notices that you receive. Provide all the required documentation noted on your dispute notice for that dispute reason. With the new shortened time-frames, reply no later than the deadline posted on your notice.
If you would like to read more detailed information you can find it here: Visa Claims Resolution (VCR)
Retail sales (minus gas) are predicted to jump 4.1% this year*, which would mark the best growth since 2014! Since 70% of consumer spending is done electronically, it is an especially good time to brush up on the topic of minimizing Chargebacks.
Running a business is a difficult job and Wind River understands that you don’t need the added frustration or headaches associated with Chargebacks. Check out our refreshed quick reference guide How to Minimize Chargebacks.
Secondly, as you know the fraudsters (those bad guys) are always looking for ways to take advantage of you. Take an extra moment to read and share with your staff our article, Guarding against On-line or Card Not Present Fraud.
*Transact Special Report: U.S. Economic Indicators
As part of our recent Innovation Exchange and Open House Event, we created a chargeback quiz to help merchants think about chargebacks and how they impact their business. The quiz wasn’t designed to test what you know or don’t know about chargebacks, but rather to educate you and help you protect your business.
Want to test your knowledge? Take the short quiz click, here which will link you to SurveyMonkey.
During our Event, many participants took the quiz and found that there were several questions that stumped many people. So we thought of taking this as an opportunity to share our knowledge and educate more of our clients about chargebacks.
Once you have taken the quiz, you can click here to find the answers. We have highlighted the correct answers and added narrative for better clarity. Hopefully, this information will help you think about ways to protect your business from chargebacks.
If you have other questions about chargebacks, you can always contact me. Phone number 800 704-7253 ext. 6752 or firstname.lastname@example.org.