Visa Dispute Updates April 2019

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Visa Dispute Updates April 2019
The major card networks are constantly updating their rules and regulations to attempt to make the process of disputes better. Here are Visa’s April 2019 changes.

In the world of disputes, the major card networks are constantly updating their rules and regulations to attempt to make the process of disputes better for all parties involved. These changes have historically happened twice a year in April and October. If a card network makes drastic changes in April, the October update may be minimal or not updated at all. Visa made a huge change to how their disputes are handled with the introduction of VCR or Visa Claims Resolution April of 2018. These changes included:

  • The timeframe to submit a response has shrunk from 45 days to 30 days.
  • Invalid chargebacks are stopped before they reach the merchant through new automated workflows.
  • Fraud and authorization chargeback 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.

The changes made in April and October each year can drastically change how disputes are handled, it is important for merchants to stay up to date on all network changes. The following is a summary of changes since the Visa October 2018 update.

Visa Core Rules and Visa Product and Service Rules Updates

The goal of Visa’s rules and the changes to those rules is to minimize risk and provide a common, convenient and secure payment experience.

Overview of Dispute-Related Changes

In the following table you’ll find an overview of the changes Visa made in April 2019 that are directly related to disputes.

Change

Region

Effective Date

Details

Removal of Cardholder Letter Requirement for Disputes

Europe Region

January 26, 2019

Revisions have been made to discontinue the requirement for a Cardholder letter when the amount of a Dispute involving a Member in the Europe Region is greater than 25 USD or 25 EUR (or local currency equivalent.)

Updates to Merchant and Acquirer Fraud and Dispute Monitoring Programs

All Regions

October 1, 2019

Revisions have been made to the thresholds in the Visa Chargeback Monitoring Program (VCMP), Visa Fraud Monitoring Program (VFMP), and Visa Acquirer Monitoring Program (VAMP).

Miscellaneous Dispute Revisions

All Regions

April 13, 2019

Miscellaneous revisions have been made to the Dispute rules and a technical non-compliance assessment has been expanded to the Europe region.

Integration of Mobile Push Payment Dispute Rules

AP, CEMEA, LAC Region

October 19, 2019

In the AP Region, CEMEA Region, LAC Region: Revisions have been made to integrate Dispute rules for Mobile Push Payment Transactions into the Visa Core Rules and Visa Product and Service Rules.

Revised Implementation Dates for Credit Transaction Authorization Requests and Related Dispute Right

Canada, LAC, US Region

April 13, 2019

Revisions have been made to delay the implementation dates for Credit Transaction Authorization Requests and the related Dispute Right 11.3 “No Authorization.”

Overview of Dispute-Adjacent Changes

In the following table, you’ll find an overview of the changes made to items that are adjacent to disputes.

Change

Region

Effective Date

Details

Introduction of Visa Issuer Monitoring Program (VIMP)

Canada, CEMEA, Europe, LAC, US, AP Region

October 19, 2019, in Canada, CEMEA, Europe, LAC, US Regions; Effective April 18, 2020, in the AP Region

Revisions have been made to introduce a global Issuer fraud monitoring program.

Updates to Deferred Authorization Requirements

All Regions

October 19, 2019, and April 17, 2021

Revisions have been made to expand the requirements for deferred Authorizations to include Card-Absent Environment Transactions and to postpone the effective date of the requirements.

Change of Name from “Verified by Visa” to “Visa Secure”

All Regions

April 13, 2019

Effective 13 April 2019 Revisions have been made to rename “Verified by Visa” as “Visa Secure.”

Revisions to Card Verification Value 2 (CVV2) Requirements

Canada Region

April 13, 2019

Revisions have been made to clarify requirements for the inclusion of CVV2 in Authorization Requests.

Expansion of Zero Floor Limit

Europe Region

October 18, 2019

In the Europe Region (excluding Turkey): Revisions have been made to change the Floor Limit to zero for all entry modes (Magnetic Stripe, contact Chip, Contactless).

Support for Strong Customer Authentication

Europe Region

April 13, 2019, and September 14, 2019

Revisions have been made to support requirements for Strong Customer Authentication.