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Are You Aware the VISA Dispute Process is Changing?

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)

Holiday Season Reminders: Prevent Fraudulent Transactions and Chargebacks

With the holiday shopping season upon us, it’s a good time to review some good practices in helping prevent your business from incurring losses from fraudulent transactions and chargebacks.

Face-to-Face Transactions
If the card presented for payment is not a chip card, always swipe the card. In the event of a Chargeback, this provides proof the card was present at the time of the transaction.

• If presented with a chip card and you have an EMV terminal, have your customer insert the card into the terminal and leave it there until the transaction is complete.  (If you have not yet upgraded to an EMV Terminal, please contact your Relationship Manager at 800-704-7253.)

• Obtain an authorization number for the full amount of the transaction.

• If an authorization is declined, do not accept it, attempt to split it into smaller amounts, attempt to obtain authorization at a later time, or try to force it through. Any of these attempts may leave your business vulnerable to a chargeback loss. Instead, ask the customer for another payment method.

• Have your refund policy printed on the receipt directly above or below the cardholder signature line in letters ¼” high.

Internet or Phone Transactions (Card Not Present)

• Obtain an authorization number for the full amount of the transaction.

• If an authorization is declined, do not accept it, attempt to split it into smaller amounts, attempt to obtain authorization at a later time, or try to force it through. Any of these attempts may leave your business vulnerable to a chargeback loss. Instead, ask the customer for another payment method.

• Verify the cardholder’s address via Address Verification Service (AVS). The best AVS response is ”Y” for Yes or “Match”. This means the cardholder has given you the same address as the billing address for the card. If you are still uncertain about the transaction (e.g., large transaction, first time customer, splitting sale amount between cards, etc), you can call the issuing bank or the Voice Authorization Center.

• Ask the customer for the CVV/CVC Code on the back of their card (front for Amex). This is a 3 or 4-digit number that is now commonly used to help verify that the customer possesses the physical card. Most terminals prompt you for this information and will return a negative response if the number provided is not correct.

• Ship the merchandise to the AVS address and obtain signed proof of delivery or other method available from your shipper.

• Charge the cardholder’s account at the time the merchandise is shipped.

• Have your checkout page designed such that a customer must acknowledge your cancellation or refund policy. Be able to produce the acknowledgement in the event of a chargeback resulting from a refund dispute. Have a clear and concise refund policy.

NOTE: If a card is not present at the time of sale, a merchant cannot verify that the legitimate cardholder authorized the sale. The steps noted above may help minimize disputes and fraud, but they cannot guarantee avoidance of chargebacks. Card not present transactions are inherently more risky than those in which the card is present.

I hope this is a good reminder and something you might wish to review with your staff.  If we can help or you have a concern you can always call Client Care at 800-704-7253 or email us at info@WindRiverFinancial.com.  Here is my contact information as well.

Wishing you a very Happy Holiday season.

 

 

Bring on the Growth! But not the frustration and headaches of Chargebacks!

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