One in three merchants are unaware of Visa Claims Resolution, study finds

Monday 19 November 2018 14:22 CET | News

A survey conducted by The Chargeback Company has revealed that one in three of the merchants were unaware of VCR.

Of those that were aware of the changes, 38% felt it had made the chargeback and dispute process worse, while 23% said it had made it better.

More than one-third of merchants were unaware that they faced additional fines if they missed the new, shorter deadlines for responding to claims, and nearly 85% who were aware report responding to (and thereby accepting) any valid chargeback dispute. This also led to additional management costs and related inefficiencies

The Chargeback Company’s study concludes that merchants are managing payment disputes more proactively as a result of Visa’s new penalty and fee schedule. However, seven out of ten merchants report difficulty in adjusting to the reduced timeframes, considering their manual process of compiling cases has not changed despite dramatically shortened timeframes.

To improve the efficiency and minimise the sheer quantity of payment disputes, The Chargeback Company recommends implementing Visa’s Merchant Purchase Inquiry (VMPI). This is a function that aims to speed up dispute communication by providing merchants with an opportunity to work with their bank or a licensed facilitator to supply additional data to Visa. Only 13% of merchants surveyed were enrolled.

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Keywords: VCR, Visa, chargebacks, merchants, The Chargeback Company, survey, payment dispute
Countries: World