claims resolutions (VCR) has been released globally by visa for dispute resolution process. All disputes the VCR will process whether it is small or big AND IT IS MODERATED BY VISA’S AUTOMATED TOOL, Visa Resolve Online (VROL). This is really the mandatory change for all the issuers and acquirers. There are so many industries – Travel, Pharmacy, Online gaming, Online dating and virtually anything subscription-based – that fall under the high risk category due to the affinity for chargeback disputes. This is correct the reason high risk merchants need to acclimate themselves with Visa’s Claims Resolution.
For many years, the overall state of mind among merchants has been that the chargeback dispute process supports the consumer and that they are consistently at a disadvantage.
What High-Risk Merchants May Not Know
Visa found that It takes around 46 or more days to resolve a chargebacks, which is too much and they also realized that a lot of money was being burned in this process which is really a big loss and this is not only their money this is the money that belonged to merchants, processor and e-commerce platforms also.
Visa’s average was 46 days in dispute resolution. Sometimes it will take more than 100 days to resolve a dispute which is quite a long time. This is the main reason to get their VCR’S idea into the framework. It actually designed to reduce cost, time and the chargebacks.
Opportunities with Visa Claims Resolution
There are so many opportunities that will streamline the process, some are as follows:
Resolving Conflicts with Merchant Process Inquiry
Visa will consolidate 22 chargeback reason codes into 4 dispute groups. These 4 groups are Fraud, Authorization, Processing Errors and Unrecognized transaction. A new process called Merchant Process Inquiry has been introduced, where immediate transaction information is provided to help cardholders recognize any queried transactions. Immediate information required includes the purchase information, digital receipt, and order details.
Changing from Litigation to Liability
By implementing this VCR process the dispute processes were started changing from “litigation-based” to “liability-assignment.” There are two avenues within VCR to discuss:
Allocation- By the help of data, which is available with Visa, they will determine the real-time that is liable for the dispute. With VCR there are inbuilt edits with the help of which they are able to stop invalid chargebacks of fraud and authorization type. Allocation tactic is aimed at fraud and authorization type disputes. Visa will perform a series of automated checks. These checks are for few things like:
- Was the fraud dispute is on 3D secure authorized transactions?
- Did the cardholder dispute the purchase after the allotted timeframe?
- Did the cardholder already receive a refund from the disputed charge?
Collaboration: Collaboration mainly focuses on consumer dispute and processing error disputes. Now every issuer, acquirers, and merchants will have the opportunity to collaborate and provide evidence where required.
Reducing Timelines: The time taken for resolving any disputes will be reduced. Currently, the process will take an average of 46-100 days, depending upon the case. However, with VCR, industry members expect:
- 31-70 days for fraud and authorization type of chargebacks.
- 31-100 days for customer disputes and processing error chargebacks.