Chargebacks are now disputes

Visa Claims Resolution Time Frames: New Dispute & Chargeback Time Limits

One of the primary goals of the Visa Claims Resolution (VCR) initiative is to reduce resolution time frames. Shortened VCR time frames have distinct benefits, but new chargeback time limits present some obvious challenges as well.

Introducing New VCR Time Frames

Visa Claims Resolution (VCR) promises simplified rules, guided workflows, and automated liability assessment. Therefore, it is possible for VCR time frames to be shortened significantly from what they currently are.

Disputes will be managed with two different workflows: allocation and collaboration. And, the chargeback time limits for each will vary.

Collaboration Dispute Time Frames

The most notable change to the collaboration time frame is for the dispute response.

Stage Current Time Frame New Time Frame
Dispute Response  Within 45 days of the chargeback processing date  Within 30 days of the dispute processing date
Pre-Arbitration  Within 30 days of the representment processing date  Within 30 days of the dispute response processing date
Pre-Arbitration Response  Within 30 days of the pre-arbitration processing date  Within 30 days of the pre-arbitration processing date
Arbitration  Within 60 days of the representment processing date  Within 10 days of the pre-arbitration response processing date

Allocation Dispute Time Frames

Since the allocation workflow is liability-assessment based, an outcome will be returned in real time and render a dispute response unnecessary.

Stage Current Time Frame New Time Frame
Pre-Arbitration  Within 30 days of the representment processing date  Within 30 days of the dispute response processing date
Pre-Arbitration Response  Within 30 days of the pre-arbitration processing date  Within 30 days of the pre-arbitration processing date
Arbitration  Within 60 days of the representment processing date  Within 10 days of the pre-arbitration response processing date

For both allocation and collaboration disputes, Visa hopes to further reduce the 30-day time frames to 20 days within the next 6-12 months.

Time Limit Challenges to Overcome

Simplified processes will benefit everyone involved--issuers will invest fewer resources, acquirers will be involved with fewer disputes, and merchants’ revenue will be in limbo for less time.

However, shortened chargeback time limits could be difficult for merchants to adhere to if they are using manual processes. With the new VCR workflow, merchants will have less than 30 days to draft and submit a dispute response.

Merchants might want to consider the heightened value of dispute response technology. Automating the response process yields the following benefits:

  • Immediate responses without the risk of expired cases
  • Customized responses to ensure the best chance of winning
  • Complete CRM follow-through
  • Transparent reporting for status and outcomes
  • Reduced FTE resources and costs
  • Unparalleled ROI

As an added bonus, all dispute responses can be managed and monitored from the same portal as prevention alerts and VMPI.

If you’d like to of automated dispute responses that comply with VCR time limits, contact Midigator® today.

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