Visa Enhanced Dispute Resolution Process: Important Policy Insight

Visa Enhanced Dispute Resolution: New Policies Drastically Change the Chargeback Process

Over the course of the next several years, Visa, the world’s largest payment card brand, will drastically alter the way in which the industry handles transaction disputes.

It is imperative that merchants take the necessary actions now, in anticipation of these changes, to ensure the new process isn’t met with substantial revenue loss.

Understanding the Enhanced Dispute Resolution Process

Visa has introduced the Enhanced Dispute Resolution Process (formerly referred to as Visa Claims Resolution or VCR) in an effort to enhance the current transaction dispute process.

The process is intended to fulfill three objectives, with the ultimate goal of reducing timelines and touchpoints:

1. Use Visa’s internal data more efficiently.
2. Incorporate automation where possible.
3. Streamline processes.

The Enhanced Dispute Resolution Process is currently being tested by a select group of industry members, but will be implemented on a more wide-scale basis soon. It is essential that merchants understand the way in which the industry is progressing and take the necessary steps to address expected complications.

Preparing for What’s Ahead

Visa’s policies will likely be implemented on a larger scale, whether they prove advantageous for the industry or not. As such, it is essential for merchants to start preparing for what’s in store for the future:

• Maintain sufficient records. Compelling evidence will become increasing important as we approach the new policy changes. Merchants will be called upon with greater frequency to prove the validity of transactions. Merchants must be able to provide necessary documents quickly and in compliance with policy guidelines.
• Enhance compliance standards. Future changes foreshadow more transparency between merchants, cardholders, and their banks. There will be no allowance for overlooked or insignificant infractions.
• Redefine the company’s best practices. When it comes to running a successful eCommerce business, adaptation is key. Forward-thinking companies who challenge the status quo will make the greatest strides. This means a continual willingness to set new boundaries and internal goals for better practices.
• Invest in quality control. Today’s merchant has more options than ever for outsourcing business processes—from hiring chargeback management experts to using an off-site customer service center. But when it comes to options for managing the quality control department, in-house should be the only option. This is all too often the area merchants ignore–and the only expertise a merchant cannot afford to outsource. Merchants should audit their current practices and invest in identified areas of improvement.

If you’d like to learn more about Visa’s Enhanced Dispute Resolution Process or are ready to create a proactive solution for the upcoming changes, contact Chargebacks911® today.