Visa Claims Resolution & You

March 20, 2018

Do you remember how long it took your business to work through your last Visa  chargeback? On average, Visa found it takes 46 days to resolve chargeback cases, and complex cases can take closer to 100 days*! This means that you could be worrying about the same case for up to three months.

On April 13, 2018, Visa will be changing the current chargeback process to the Visa Claims Resolution (VCR) initiative. VCR is a streamlined process that simplifies the chargeback process, and cuts down on the overall time each case takes. With the change comes new category names and processes, so it’s important that all business owners understand the new system. Consider the following information to make sure you’re prepared for how VCR may change your operations.

Visa Claims Resolution 101

In sum, the VCR initiative simplifies the dispute process by eliminating steps that currently add time and inefficiency.

By leveraging information that is already available, VCR will be able to determine if the dispute is legitimate before the chargeback process begins. An automated system will check if the claim fits certain criteria that classifies it as invalid, and if so the dispute will not go any further. Examples of invalid claims include a dispute on a transaction that has surpassed the time allotment, or a dispute that has been opened before and already completed the chargeback process.

Legitimate disputes will be sorted into four distinct categories that will shape the way they’re investigated:

  • Authorization,
  • Fraud
  • Processing Errors
  • Consumer Disputes**

Between 60 to 80 percent of all disputes fall within the categories of Authorization or Fraud, which will work through a new process called Allocation. In an Allocation dispute, liability is placed on the merchant to defend against the chargeback. The remaining 20 to 40 percent of disputes fall within Processing Errors or Consumer Disputes, which will work through a process called Collaboration. In a Collaboration dispute, the issuer and acquirer will work together to resolve the dispute.  

Why Now?

The payments industry is changing in ways never seen before. With the adoption of mobile wallets, smart devices, and the ever-growing ecommerce industry, merchants are seeing fewer and fewer cards in their stores. This means that the risks associated with card not present transactions are increasing, and so is the amount of disputes and chargebacks. Visa Claims Resolution will make the chargeback process more efficient, and simplifies the overall process to keep up with this rapid change.

Where to Learn More

If you’re interested in learning more about Visa Claims Resolution, visit and for detailed descriptions of the new requirements and chargeback reason codes that you’ll need to know! 

The information in this article is provided solely for informational purposes and is not intended to be legal, business or other professional advice or an endorsement of any of the websites or services listed.  



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