sarah sorensen - vantivinfo.vantiv.com/rs/048-bur-972/images/vcr-core... · us $1.05 : visa dispute...

© 2018 Vantiv, LLC. All rights reserved.

VCR- Visa Claims Resolution Merchant Processing

Sarah Sorensen

2 4/13/2018 © 2018 Vantiv, LLC. All rights reserved.

• The What, Who, When, and Why • Visa Process Flows • Reason Code Review • Working a Visa Dispute

• Outside of iQ • Using iQ

• PIN Disputes Effected by VCR • Reports • Resources

Agenda


The What, Who, When, and Why

Visa Claims Resolution (VCR) is a new dispute flow that Visa will implement to simplify the dispute process.

What is it?

• Merchants • Processors • Acquirers • Issuers • Cardholders

Who does it impact?

• April 14, 2018 • To speed up the

dispute resolution process

• Reduce Complexity • Reduce the number

of invalid disputes

When and Why?



Worldpay Service Code Basis VCR Fee** Visa Dispute Response < 20 Days* Per Questionnaire Submitted US $1.05

Visa Dispute Response < 21-25 Days* Per Questionnaire Submitted US $1.35

Visa Dispute Response < 25+ Days* Per Questionnaire Submitted US $1.65

Visa Dispute Acceptance < 20 Days* Per Accept Submitted No Charge

Visa Dispute Acceptance < 21-25 Days*

Per Accept Submitted

US $0.50

Visa Dispute Acceptance < 26-30 Days*

Per Accept Submitted US $0.75

Visa Dispute Expired Per Expired Dispute US $0.75

*We recommend merchants give Worldpay 5 days to process dispute/acceptance **Visa Fee’s – Charged on Monthly Invoice does not represent all fees


Current Defined Term New Defined Term Dispute Category

Chargeback Dispute All

Representment

Pre-Arbitration Fraud and Authorization

Dispute Response Processing Error and Consumer

Pre-Arbitration/Pre-Compliance No Change All

Arbitration/Compliance No Change All

Appeal No Change All

Terminology Changes



• Draft Retrievals • Mastercard Disputes • American Express Disputes • Discover Disputes • How you process transactions • How you settle transactions • How a cardholder initiates a dispute

What isn’t changing with VCR?



Visa Process Flows

Allocation vs. Collaboration

Allocation: • For most fraud and authorization disputes, VROL (Visa Resolve Online)

will determine an initial liability assignment in real-time. • Acquirers and merchants will have the ability to respond under certain

conditions i.e. compelling evidence, invalid dispute, credit issued, cardholder no longer disputes.

Collaboration: • Will require interaction between merchants, acquirers, cardholders, and

issuers. • Will use standardized questionnaires to reduce timeframes and simplify

the communication process.


Issuer submits a dispute to

Visa

Acquirer sends

dispute to merchant

If merchant does not

send a pre-arb, he loses

If Issuer accepts the pre-arb or

fails to respond, merchant wins.

Visa reviews the

dispute, makes a

final ruling

Visa determines validity of dispute. If

valid, sends it to acquirer.

Merchant has up to 30

days to provide a response,

called a pre-arb

If Issuer declines, merchant

has 10 days to file

arbitration

Losing party pays no less

than $500 arbitration

fee

Issuer has up to 30 days to

accept or decline the

pre-arb

Allocation


Allocation Codes Redefined

Category Reason Code

Fraud 10.1 EMV-Liability Shift Counterfeit Fraud 10.2 EMV-Liability Shift Counterfeit Non-Fraud 10.3 Other Fraud Card-Present 10.4 Other Fraud Card-Absent 10.5 Visa Fraud Monitoring Program

Authorization 11.1 Card Recovery Bulletin 11.2 Decline Authorization 11.3 No Authorization


Visa determines validity of dispute. If

valid, sends it to acquirer.

If merchant doesn’t

respond, issuer wins.

Issuer has up to 30 days to

provide a rebuttal (pre-arbitration)

If merchant declines,

Issuer can file for

Arbitration.

Issuer submits a dispute to

Visa

Acquirer sends

dispute to merchant

If merchant accepts or

doesn’t respond, he

loses.

Visa makes a ruling and

losing party pays no less than $500 in

fees

Merchant has up to 30

days to provide a “dispute

response”

Collaboration

Merchant has 30 days to

accept or decline.


Collaboration Codes Redefined Category Reason Code

Processing Error

12.1 Late Presentment 12.2 Incorrect Transaction Code 12.3 Incorrect Currency 12.4 Incorrect Account Number 12.6.1 Duplicate Processing 12.6.2 Paid By Other Means 12.7 Invalid Data

Consumer Disputes

13.1 Merchandise/Services not Received 13.2 Cancelled Recurring 13.3 Not as Described or Defective Merch/Service 13.4 Counterfeit Merchandise 13.6 Credit Not Processed 13.7 Cancelled Merch/Services 13.8 Original Credit Transaction Not Accepted 13.9 Non-Receipt of Cash or Load of Transaction Value


Working a Visa Dispute


• Receive Dispute notification via mail or fax • Understand the reason for the dispute and timeframe you must respond by • Identify the reason code for the dispute • Log onto the dispute management website and download corresponding

questionnaire (website address coming soon!) • Mail or fax completed questionnaire and supporting documentation.

• Fax: 1-513-900-3546 • Mail: Merchant Services

8500 Governors Hill Dr MD 1GH2Y1-1384 Symmes Township, OH 45249-1384

Dispute Management Website Address

Without iQ


Card Brand, Dispute Type, Reason Code


Dispute Management Website


Locating a Dispute in iQ


Responding to a Case


Reason #1: Cardholder No Longer Disputes

Required: Email or letter from cardholder saying they are dropping the dispute


Reason #2: Credit Processed

Required:

• Date credit was processed

• Amount of credit

• 23-digit (ARN) of credit

• Explanation and/or documentation


Reason #3: Invalid Dispute – Processing Error or Consumer Dispute

Required: • Select a reason from the

drop-down list. Notice that the drop-down list reasons will change based on dispute reason code.

• Documentation may be

required.


Reason #3: Invalid Dispute – Fraud or Authorization

Required: • Note there is not a drop-down list

when the dispute is fraud or authorization-related.

• You will need to explain why the dispute is invalid.

• Documentation may be required.


Reason #4: Manual Imprint

Required: • Copy of card imprint on sales

receipt • Data to link the card imprint

to the sale


Reason #5: Compelling Evidence

Compelling Evidence may be used only on two reason codes:

• 10.4-Fraud, Card Not Present Environment

• 13.1-Merchandise/Services Not Received


Reason #5: Compelling Evidence (Continued)

Compelling Evidence Types listed below have subsequent questions, the other types do not: • AVS response of Y or M and proof of delivery (date and time) • Evidence of one or more non-disputed payments for same merchandise or

service • Recurring transaction with binding contract or previous undisputed recurring

transaction and proof the cardholder is using the merchandise or services • Digital goods download with time and data


Digital goods download with time and data

* You must choose at least two pieces of evidence


Digital goods download with time and data (Continued)


• Reason codes will not change • Four new reason codes that are non-monetary

• 703 Pre-Arbitration • 704 Arbitration • 705 Pre-Compliance • 706- Compliance

• Questionnaires should be faxed to 1-513-900-3546

Interlink and Plus networks only

PIN Disputes


Reports to Review


Report Code

Report Name Description Debit/Credit

MD-900 Dispute Prenotification A dispute has been initiated NA

MD-901 Advice of Dispute A dispute has been initiated Debited

MD-907 Draft Retrieval Prenotification A receipt copy has been requested

NA

MD-922 Dispute Reversal Rebuttal sent to issuer for review

Credit

MD-923 Denied Reversal Worldpay needs more information from merchant

NA

MD-924 Pre-Arbitration Accepted Issues Favor Issuer has won the dispute Debit

MD-925 Pre-Arbitration - Merchant Declined Merchant declined issuers pre-arbitration Request

NA

MD-926 Pre-Arbitration Accepted Issuer has accepted your rebuttal

Credit

MD-927 Pre-Arbitration Declined Issuer has declined your rebuttal

NA

VCR Reports


VCR Reports (continued) Report Code

Report Name Description Debit/Credit

MD-928 Pre-Arbitration Request Rebuttal sent to issuer for review

Credit

MD-929 Pre-Arbitration Notification Issuer refused rebuttal, need more information

NA

MD-930 Arbitration Requested Case has been sent to Visa NA

MD-931 Arbitration Ruling-Merchant Favor Case has been ruled in Merchant’s favor

Credit

MD-932 Incoming Arbitration Issuer Requested Arbitration NA

MD-933 Arbitration Ruling- Issuer Favor Case has been riled in the Issuer’s favor

Debit

MD-934 Dispute Closure Case is closed and in your favor

Credit

MD-935 Dispute Closure Issuers Favor Case closed in Issuers favor Debit


Deadline to respond

Dispute type, reason code and

amount

Additional transaction details

and contact information


Resources


• Ability to pull forms without using iQ • Forms downloadable by code as indicated on the notification • Not intuitive like iQ

Dispute Management Website Address

Resources


www.accessmyiq.com • Ability to turn on notifications within profile • Keep documents and notifications in one spot • Need an iQ invitation?

• Self register at www.accessmyiq.com\enroll You’ll need your tax ID, merchant ID and email address

• Or email [email protected] to request an invitation

Resources

http://www.accessmyiq.com/enroll

mailto:[email protected]

sarah sorensen - vantivinfo.vantiv.com/rs/048-bur-972/images/vcr-core... · us $1.05 : visa dispute...

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