Monica’s Monthly Byline Feature for Forbes
In her latest feature for Forbes, Chargebacks911® COO Monica Eaton weighs in on Visa and Mastercard’s recent policy changes, Visa Claims Resolution and Mastercard Dispute Resolution.
Disputes were developed back in the 1970s, intended for a pre-internet age. Unfortunately, efforts to bring dispute rules into the present day have been inconsistent and insufficient. As a result, chargeback policy has lagged behind the realities of the new digital market for nearly two decades.
Visa and Mastercard hoped to address this reality with their recent policy overhauls. It’s true that VCR and MDR represent positive change. But, as Monica points out, it’s not enough to simply adjust the chargeback ruleset and procedures. Instead, we’re going to need a complete overhaul of the dispute process.
“New technologies can change the way consumers view their relationship with retailers,” Monica explains. “Card schemes, however, lag behind the technological curve… The vulnerabilities exposed by shifts in technology and consumer behavior could cost merchants a lot of money…and I believe it will only get worse.”
Monica posits that what we really need is standardization and consistency across card schemes. “Much of the confusion surrounding chargeback processes is from complicated, often redundant or inconstant procedures. Standardizing chargeback rules across card schemes would allow for much more transparency and consistent application and interpretation by merchants and banks alike.”
