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.