October 4, 2018
For many years, e-commerce merchants have chafed at chargeback rules they felt were unfair and unclear. Last 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. Five months later, despite a more streamlined process, some merchants still struggle with the new rules and some are not aware of the change at all, according to a new report.
In Beyond VCR: Surveying the Impact of Visa Claims Resolution, chargeback management firm Chargebacks911 found that more than one-third of merchants polled claimed to have no knowledge of Visa’s new dispute process. But, even those who were aware of the VCR reported very mixed results.
About 33 percent of those who were aware of the new process saw a decline in chargebacks, but a similar percentage of those polled reported an increase in chargebacks. While 42 percent said winning chargebacks was more difficult, 44 percent said it was about the same as before.
Overall, 23 percent of those surveyed who were aware of the VCR reported it made the process better. Thirty-eight percent said the process was worse.
Mastercard reportedly will roll out similar changes to its process soon. Stay tuned. For a comprehensive review of the changes Visa made to the dispute resolution process, download Card Not Present’s Merchant Guide to Visa’s VCR: 10 Rules to Win.