In response to the rising number of chargebacks and an increase in related processing time and costs, Visa is introducing their new dispute service initiative, Visa Claims Resolution (VCR). Visa will implement VCR on April 14, 2018.

Visa Claims Resolution is designed to streamline and expedite the dispute resolution process. The intent for this change is to eliminate or reduce invalid disputes and responses, and automate liability assignment from the current litigating based process. It will provide a more efficient process with simplified rules, user guided workflows, and reduced resolution time frames.

With VCR, Visa is making significant changes and has focused on shortening and simplifying the dispute resolution process requirements to ensure there are consistent rules for Issuers, Acquirers, and merchants.

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Visa found that it takes takes 46 days, on average, to resolve a chargeback. More complex cases can take over 100 days to resolve. From a merchant’s standpoint, that’s over three painful months worrying about the same dispute. VCR reduces the response time frame to 30 days. Visa anticipates the new process’ required up-front information will do away with the back-and-forth between the merchant, acquirer, and issuer. Resulting in quicker dispute resolution, with expectations from Visa indicating resolution within 31 days.

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To achieve the quicker resolutions, Visa will be reducing the whole process involved in dispute resolution by having all disputes follow one of two new workflows: Allocation and Collaboration.