Visa Claims Resolution (VCR) FAQ

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Visa Claims Resolution (VCR) FAQ
Visa introduced a new system to streamline the dispute process called VCR. Here are some common questions merchants have about it.

Last year, Visa Claims Resolution (VCR) brought some confusion and excitement to merchants. Check out some of the most frequently asked questions about VCR and the process that surrounds it.

What is Visa Claims Resolution (VCR)?

Visa introduced a new system to streamline the dispute process called VCR or Visa Claims Resolution. As of April 2018, all disputes are processed through VCR and are moderated by Visa’s automated tool, Visa Resolve Online (VROL). Visa Claims Resolution is expected to save time and increase efficiencies for merchants.

Here’s what merchants should know about the new process:

  • The timeframe to submit a response has shrunk from 45 days to 30 days.
  • Obvious invalid disputes are stopped before they reach the merchant through new automated workflows.
  • Fraud and authorization disputes responses are only allowed when the merchant can definitively prove the dispute is invalid.
  • Reason codes are getting an organizational makeover, but the compelling evidence remains largely unchanged from what was previously accepted.
  • There are now 22 reason codes are consolidated into 4 dispute categories: Fraud, Authorization, Processing Errors, and Consumer Disputes.

VCR FAQ

Now that we have gone over the basics of what VCR is, we will dive into some of the frequently questions merchants have:

What transactions qualify for VCR flows?

Transactions on any Visa network including Network 2 -Visa, Network 3 - Interlink, Network 4 - Plus.

How does VROL determine if disputes are valid?

The goal of these changes was to lower the amount of disputes merchant receive and lower the amount of time merchants spend on disputes. VROL will help determine if a dispute is valid or not by comparing the transaction data, the dispute category, and the cardholder’s answers on the VROL questionnaire. Issuing banks will be required to fill out a dispute questionnaire to ensure a full picture of the situation before the charge can be disputed.

Will the Good Faith process still exist?

With VCR, there will be no changes to the Good Faith process. The good faith process happens when the dispute time frame is over but a collection case is sent to the issuer or acquirer. Usually this situation requires a minimum dollar that is set by each issuing bank among other requirements like cases must be less than a year old from the transaction date to qualify for review.

What are the new reason codes?

Code

Category

Description

10.1

Fraud (10)

EMV Liability Shift Counterfeit Fraud

10.2

Fraud (10)

EMV Liability Shift Non-Counterfeit Fraud

10.3

Fraud (10)

Other Fraud – Card Present Environment

10.4

Fraud (10)

Other Fraud – Card Absent Environment

10.5

Fraud (10)

Visa Fraud Monitoring Program

11.1

Authorization (11)

Card Recovery Bulletin or Exception File

11.2

Authorization (11)

Declined Authorization

11.3

Authorization (11)

No Authorization

12.1

Processing Errors (12)

Late Presentment

12.2

Processing Errors (12)

Incorrect Transaction Code

12.3

Processing Errors (12)

Incorrect Currency

12.4

Processing Errors (12)

Incorrect Transaction Account Number

12.5

Processing Errors (12)

Incorrect Transaction Amount

12.6

Processing Errors (12)

Duplicate Processing or Paid by Other Means

12.7

Processing Errors (12)

Invalid Data

13.1

Consumer Disputes (13)

Services Not Provided or Merchandise Not Received

13.2

Consumer Disputes (13)

Cancelled Recurring Transaction

13.3

Consumer Disputes (13)

Not as Described or Defective Merchandise/Services

13.4

Consumer Disputes (13)

Counterfeit Merchandise

13.5

Consumer Disputes (13)

Misrepresentation of the purchased good and/or service

13.6

Consumer Disputes (13)

Credit Not Processed

13.7

Consumer Disputes (13)

Cancelled Merchandise/Services

13.8

Consumer Disputes (13)

Original Credit Transaction Not Accepted

13.9

Consumer Disputes (13)

Non-Receipt of Cash or Load Transaction Value at ATM

Has the dispute processing terminology changed?

You may have noticed some new termanology being used with the change to VCR. The most noticeable changes being:

Old Term

New Term

Chargeback

Dispute

Representment

Dispute Response/Pre-arbitration

How will the time frames change?

Visa reduced time frames for all responses to 30 days. This includes dispute responses, pre-arbitration requests, and pre-arbitration response.

These are just a few popular question merchants have had with the recent changes to VCR. Visa does provide training through their Visa Business School on VCR for merchants that want to learn more.

Last year, Visa Claims Resolution (VCR) brought some confusion and excitement to merchants. Check out some of the most frequently asked questions about VCR and the process that surrounds it.

What is Visa Claims Resolution (VCR)?

Visa introduced a new system to streamline the dispute process called VCR or Visa Claims Resolution. As of April 2018, all disputes are processed through VCR and are moderated by Visa’s automated tool, Visa Resolve Online (VROL). Visa Claims Resolution is expected to save time and increase efficiencies for merchants.

Here’s what merchants should know about the new process:

  • The timeframe to submit a response has shrunk from 45 days to 30 days.
  • Obvious invalid disputes are stopped before they reach the merchant through new automated workflows.
  • Fraud and authorization disputes responses are only allowed when the merchant can definitively prove the dispute is invalid.
  • Reason codes are getting an organizational makeover, but the compelling evidence remains largely unchanged from what was previously accepted.
  • There are now 22 reason codes are consolidated into 4 dispute categories: Fraud, Authorization, Processing Errors, and Consumer Disputes.

VCR FAQ

Now that we have gone over the basics of what VCR is, we will dive into some of the frequently questions merchants have:

What transactions qualify for VCR flows?

Transactions on any Visa network including Network 2 -Visa, Network 3 - Interlink, Network 4 - Plus.

How does VROL determine if disputes are valid?

The goal of these changes was to lower the amount of disputes merchant receive and lower the amount of time merchants spend on disputes. VROL will help determine if a dispute is valid or not by comparing the transaction data, the dispute category, and the cardholder’s answers on the VROL questionnaire. Issuing banks will be required to fill out a dispute questionnaire to ensure a full picture of the situation before the charge can be disputed.

Will the Good Faith process still exist?

With VCR, there will be no changes to the Good Faith process. The good faith process happens when the dispute time frame is over but a collection case is sent to the issuer or acquirer. Usually this situation requires a minimum dollar that is set by each issuing bank among other requirements like cases must be less than a year old from the transaction date to qualify for review.

What are the new reason codes?

Code

Category

Description

10.1

Fraud (10)

EMV Liability Shift Counterfeit Fraud

10.2

Fraud (10)

EMV Liability Shift Non-Counterfeit Fraud

10.3

Fraud (10)

Other Fraud – Card Present Environment

10.4

Fraud (10)

Other Fraud – Card Absent Environment

10.5

Fraud (10)

Visa Fraud Monitoring Program

11.1

Authorization (11)

Card Recovery Bulletin or Exception File

11.2

Authorization (11)

Declined Authorization

11.3

Authorization (11)

No Authorization

12.1

Processing Errors (12)

Late Presentment

12.2

Processing Errors (12)

Incorrect Transaction Code

12.3

Processing Errors (12)

Incorrect Currency

12.4

Processing Errors (12)

Incorrect Transaction Account Number

12.5

Processing Errors (12)

Incorrect Transaction Amount

12.6

Processing Errors (12)

Duplicate Processing or Paid by Other Means

12.7

Processing Errors (12)

Invalid Data

13.1

Consumer Disputes (13)

Services Not Provided or Merchandise Not Received

13.2

Consumer Disputes (13)

Cancelled Recurring Transaction

13.3

Consumer Disputes (13)

Not as Described or Defective Merchandise/Services

13.4

Consumer Disputes (13)

Counterfeit Merchandise

13.5

Consumer Disputes (13)

Misrepresentation of the purchased good and/or service

13.6

Consumer Disputes (13)

Credit Not Processed

13.7

Consumer Disputes (13)

Cancelled Merchandise/Services

13.8

Consumer Disputes (13)

Original Credit Transaction Not Accepted

13.9

Consumer Disputes (13)

Non-Receipt of Cash or Load Transaction Value at ATM

Has the dispute processing terminology changed?

You may have noticed some new termanology being used with the change to VCR. The most noticeable changes being:

Old Term

New Term

Chargeback

Dispute

Representment

Dispute Response/Pre-arbitration

How will the time frames change?

Visa reduced time frames for all responses to 30 days. This includes dispute responses, pre-arbitration requests, and pre-arbitration response.

These are just a few popular question merchants have had with the recent changes to VCR. Visa does provide training through their Visa Business School on VCR for merchants that want to learn more.

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