MyChargeback, a leading chargeback request processor reported that the latest Visa Claims Resolution (VCR) policy is already stepping up the dispute resolution process for both high risk merchant account uk retailers and consumers.
The updated VCR which is by now active worldwide has optimized procedures and resolution timetables meant to streamline the customer-merchant dispute settlement process.
According to Alan Tepfer, MyChargeback’s director of fund recovery, these predictions are based on the October 2017’s groundwork roll-out in New Zealand and Hong Kong. Visa forecasted that this standardized processes and the automation built into the new VCR would cut down the number of credit card disputes. Tepfer added that the same trend is noticeable for the U.S, Britain and other nation’s worldwide.
The Consumer Financial Protection Bureau started collecting credit card complaints in July 2011, and from March 1, 2017, the department had taken care of 116,200 related disputes, with fraudulent chargebacks proving to the consumer’s primary issue.
According to the Agency, another concern customers raised was on the delays experienced in having the charges eliminated even after being notified by the card company that the claim has been ruled in their favor.
Still, Tepfer praises Visa for making amendments ensuring every possible preventative measure to avoid disputes before they go down and speed up the solving process. “Cardholders can now acquire more comprehensive monthly statements, better consumer service, a stricter security check and faster approval of chargebacks.”
Two noticeable adjustments in the streamlined process are; restructured dispute categories from 22 to only four and shortened response time for merchants from 45 to 30 days with plans to drop it even more to just 20 days.
“The main advantage this VCR has brought to the consumers is that retailers are now expected to disprove consumer evidence beforehand. Because there’s no freedom to add extra info afterward, the merchant only has a single opportunity to refute a consumer’s claims before Visa decides on the case,” Tepfer explains.
On the other hand, Visa customers must be cautious as they only have a single chance to present all their arguments and shreds of evidence when they file a dispute. According to Tepfer “this will enhance the extra value customers have by seeking assistance from a finance recovery service like MyChargeBack. I believe we have the experience to make the most of the one chance the customer has so they can win their case and regain their money.”
As always, Visa has done a commendable job making the adjustments. However, both parties must familiarize with the changes. Only that way will both consumers and merchants benefit from the optimized VCR.