By infusing its Pega Process AI technology into Smart Dispute, Pega helps banks make smarter decisions to resolve chargeback cases, enabling them to save time, money, and effort while accelerating the resolution of transaction disputes and fraud claims for its customers.
Chargebacks – the process by which consumers dispute the validity of a card transaction – are on the rise around the world, partially driven by an increase in fraud, as per the press release. Each request kicks off a time-intensive process for the card-issuing bank, which needs to carefully investigate these disputes, determine if a refund is warranted, and work with the various payment networks’ complex and ever-changing rules to process them.
By using Pega Process AI within Pega Smart Dispute, the software automatically analyses a transaction dispute to predict the likelihood of it being approved through the validation rules of payment networks like Visa. With that critical information, banks can optimise an efficient and low-cost path to resolution. For example, the bank might automate cases with a high success probability while assigning more human resources to investigate low probability cases. This not only saves banks labour costs but also leads to faster resolution for their customers.
Pega Process AI integrates workflow automation, real-time AI decisioning, NLP, and event processing to optimise business processes. It simplifies real-time decision-making through data-driven arbitration, continuously learning from past outcomes for improved accuracy. Pega Smart Dispute includes preconfigured AI use cases for chargeback predictions, aiding network acceptance and representments. The AI engine can escalate tasks nearing deadlines and enhance workflows for efficiency.
In addition to Pega Process AI, the latest version of Pega Smart Dispute includes several other significant updates to its proven solution to help banks further streamline the disputes process, including:
Expanded support for different payment types: Building on Pega’s pre-built workflows for Visa, Mastercard, and American Express, Smart Dispute now provides improved workflow templates that help banks quickly build workflows to manage new and emerging payment types. The solution ships with pre-configured resolution pathways for Zelle or ACH exceptions;
Support for Regulation II: The software also supports compliance with new Regulation II rules from the US Federal Reserve System for cases of debit card not present (CNP) transactions;
Updated compliance rules: Pega updates Pega Smart Dispute with the latest chargeback rules from Visa and Mastercard twice per year (effective in April and October), helping clients process disputes against the latest guidance.
Pega Smart Dispute governs payment dispute and exception processes throughout the payment lifecycle across any channel – managing all aspects of this unique ‘moment of truth’ in banking. It provides a centralised resource to both guide employees in agent-assisted channels and automate processes within self-service channels. This helps issuers unify dispute and fraud claim operations to increase efficiency, customer satisfaction, and compliance. Built on Pega’s leading low-code platform, Pega Smart Dispute also enables clients to adapt rapidly to changing conditions and new payment types for rapid extensibility.
Company officials said the increase in chargebacks is causing more strain to bank staff who are already overwhelmed with increasing amounts of regulation and fraud in the post-pandemic world. By introducing Pega’s proven, scalable, and secure AI into their proven Pega Smart Dispute solution, the company added another useful innovation that will help banks further streamline processes to resolve disputes faster, save employees time, and increase customer satisfaction.
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