Though it has been a stroke of luck for issuers & merchants, the increasing number of e-commerce transactions has caused much anxiety mainly due to the rising number of chargebacks and cybercrime. Losses due to Card Fraud have skyrocketed worldwide and are predicted to hit $50 billion come 2025— according to the Nilson Report— with friendly fraud accounting for most of these losses.
Chargebacks are a nuisance, but they can cause you serious problems. Plus, they are costly and time-consuming if you don’t work to resolve them in time.
And tomorrow will mark the surfacing of a rescuer—the Visa Claims Resolution Rule (VCR)—which will come into play to help simplify the dispute settling process and improve the effectiveness of the entire Chargeback process.
One of the noteworthy changes in the rule is the use of Visa’s dispute platform— Visa Resolve Online (VROL) — to categorize and present disputes. While VCR is looking to reduce the number of disputes, Merchants & Acquirers should also be ready to adapt VCR’s new changes.
In other words, Merchants & Acquirers will have to shift to focus on making the chargeback resolution process more efficient by meeting the new shortened 30-days window rather than the current 45-days span.
But the news of a few changes should send you into a panic; the important thing is to have a clear understanding the revised dispute reason codes, so you’re well-placed to give a quicker response. Visa has streamlined the whole process of dispute resolution, and as of April 13, all disputes will follow one of the two new strategies, i.e., Allocation and Collaboration.
Again, for VCR, the 22 reason codes have been merged into four main dispute categories. You may also need to customize you tech technology to add in the latest reason codes. But this may be easier said than done for small to medium sized acquirers
Business should partner with competent third party companies to help them handle all disputes and chargebacks. Make sure the offer customized services to meet your firm’s requirements. And as a safety measure; you can use a card payment machine that allows partial refunds to help you solve cases before they become chargebacks.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry has helped thousands of business owners get card payment machines and start taking payments.