“Chargebacks” are Now “Disputes” and Other Big Term Changes
- February 8, 2018
- 2 minutes
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:
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.
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.
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.
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.
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