Following our previous posts on VCR initiative that is due to go live in mid-April 2018, today's post will include an overview the changes made in VISA dispute reason codes.
The disputes (currently known as chargebacks) will be divided into four categories: Fraud, Authorization, Consumer Disputes, and Processing Errors. VISA will still have 22 dispute codes as today, however, they will be re-arrange to better match the four categories.
What to pay attention to?
Reason 75 ‘Transaction Not recognized’ is decommissioned. This means that you may experience increase in either VMPI requests or increase in Fraud and Authorisation related disputes
Reason 73 ‘Expired Card’ will is decommissioned
Reason 57 ‘Fraudulent Multiple Transactions’ will not be filed anymore, these cases will be handled by the issuer in the compliance phase of the dispute process
The cases that fell under Reason 81 ’Fraud-Card-Present Environment’ will be now routed to 10.2,10.3,12.4
Some new reasons added for more clarity on dispute reason
An issuer will be required to complete new VROL questionnaire to determine
An issuer will not be allowed to change the dispute reason code
An issuer will be allowed to recall a dispute within 3 calendar days (issuing date +3) if no counter action was taken yet by an acquirer or a merchant
Fraud dispute limit (10.4) per account number will be set to 35 transactions within 120 days
Reason code 13.1 (30-’service not provided’) - if a cardholder asks to dispute more that 3 transactions with the same merchant within 30 days he/she will be required to supply an letter to support the dispute
As you see, whether you represent your disputes manually or through an automated system, the re-presentment process should be re-viewed and new dispute (chargeback) reasons should be understood and addressed in order to receive the best possible result.
Chargeback representment rules are quite complex and in this post we present a quick overview of the upcoming changes.
If you have any question regarding dispute re-presentment process let us know, PaymentsOp team will help you find the answers to any questions regarding the new VCR initiative.