July 26, 2018
For many years, e-commerce merchants have chafed at chargeback rules they felt were unfair and unclear. In April, Visa sought to address the concerns of merchants and others in the online payment ecosystem by launching its Visa Claims Resolution (VCR) process—a complete overhaul of the rules governing when and how disputed online transactions are resolved. Three months in, some merchants still struggle with the new rules, despite a more streamlined process.
The San Francisco-based card network created a global, data-driven management system called Visa Resolve Online (VROL) it has leveraged to automate the cumbersome process and eliminate up front as many disputes as possible. For merchants who are still unclear as to how the process has changed for disputes initiated by Visa cardholders, Card Not Present has produced a guide walking them through the changes.
The guide examines changes to the response window, how the reason codes for chargebacks have been consolidated and other changes to the more streamlined process.
Overall, these massive changes to the Visa chargeback process should reduce dispute volume, provide proactive dispute resolution, identify, track and monitor abuse and enhance the customer experience for all stakeholders. But, merchants that aren’t yet aware of or prepared for VCR should be making some changes of their own: Have a plan to respond to chargebacks faster, have a process to evaluate whether you have the required response documentation for each reason code (especially fraud chargebacks) and be prepared to respond to chargebacks in the shortened time frame.