“Chargebacks” are Now “Disputes” and Other Big Term Changes
About the time that “chargebacks” gained widespread understanding, Visa went and changed everything! Here’s what you need to know about new terminology brought about by the Visa Claims Resolution (VCR) initiative.
New Policies. New Words.
Visa Claims Resolution, or VCR, is an initiative to streamline workflows and standardize rules for chargeback and dispute resolution. The framework changed just about every component of dispute resolution--including the vernacular.
Here are the new updated terms:
|Dispute||Visa has phased out the word chargeback and replaced it with dispute.|
|Dispute Response||Visa has phased out the word representment and replaced it with dispute response.|
|Transaction Inquiry||When a cardholder initiates a dispute, the issuer will submit a transaction inquiry to Visa Resolve Online (VROL) to determine which transaction or transactions are being challenged.|
|Associated Transactions||Visa will respond to a transaction inquiry with a list of associated transactions (previous credits, reversals, adjustments, etc.) that could proactively render the dispute invalid.|
|Allocation||Allocation is a new dispute resolution style. It uses automation and internal data to replace litigation with liability assignment.|
|Collaboration||Collaboration is a dispute resolution style that mimics the legacy process.|
|Dispute Condition||Visa has phased out 22 reason codes and replaced them with 24 dispute conditions.|
|Dispute Category||The newly-established dispute conditions are divided into four dispute categories. “Fraud” and “authorization” disputes will be processed with the allocation workflow. “Processing error” and “consumer dispute” cases will be processes with the collaboration workflow.|
|Pre-Arbitration||Because liability has already been assessed with allocation disputes, there technically isn’t a representment opportunity (now known as a dispute response). Instead, merchants will respond with pre-arbitration. Pre-arbitration is applicable when new information has become available—such as a credit being issued.|
|VMPI||Visa Merchant Purchase Inquiry is a platform that enables issuers to communicate directly with merchants to exchange detailed transaction data in real time.|
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