François Chung, Ph.D.

FIS project @Brussels, Belgium (2018). It can take up to 100 days to resolve a chargeback, which means for a merchant over 3 months worrying about the disputed transaction. This is why Visa released in April 2018 its new global dispute resolution process: Visa Claims Resolution (VCR). As a consequence, disputes are now moderated by Visa’s automated tool Visa Resolve Online (VROL). Objective is to cut down on time, cost, and the number of chargebacks.

One of the main features of VCR is that invalid chargebacks are eliminated whenever possible. This means if a customer tries to initiate a chargeback when it is past the time limit, or when minimum criteria are not met, Visa will block the dispute from becoming a chargeback. Requiring this extra information from the beginning reduces unnecessary chargebacks, helps merchants understand why the chargeback occurred, and ultimately saves time for everyone involved.

Here are other important VCR features:

• Time limit change: merchants have 30 days, instead of 45 days, to respond to a Visa chargeback;
• Dispute workflows: new workflows are Allocation (fraud and authorization chargebacks) and Collaboration (interaction required between merchants, acquirers and issuers);
• New reason codes: there are 4 dispute categories:
  
  • 10 - Fraud;
  • 11 - Authorization;
  • 12 - Processing Errors;
  • 13 - Consumer Disputes.

Within CBK product implementation teams, my role consists in discussing, clarifying and taking note of the VCR requirements expressed during on-site workshops by the clients with respect to their business processes (e.g. business, clearing, IT). These requirements are then analyzed and documented at the office, and finally validated through an agreed scope document.

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