Payment companies RS2 and ACI Worldwide are urging financial institutions, merchants, and payment processors to adopt advanced technology capable of reducing fraud and improving dispute resolution mechanisms.
Data from Visa Acceptance Solutions indicates that the average value of fraudulent ecommerce transactions in Brazil during the first half of 2024 was around 60% higher than legitimate ones. Credit cards, which represent approximately 34% of online payments in the country, remain the most commonly targeted method by fraudsters.
Current dispute levels are being exacerbated by both operational constraints and increasingly sophisticated fraud tactics. Criminal strategies include phishing, account takeovers, forged payment confirmations, and fake product listings. These activities have resulted in higher chargeback volumes, particularly when customers report unauthorised transactions, missing goods, or engage in ‘friendly fraud,’ disputing legitimate transactions to gain unwarranted refunds.
Strict card scheme rules and limited timeframes, sometimes as short as seven days, for responding to disputes present additional challenges. Moreover, the lack of seamless interoperability between merchants, banks, and payment service providers complicates the resolution process, increasing both financial losses and the administrative burden on involved parties.
Officials from RS2 and ACI Worldwide have noted that artificial intelligence and machine learning technologies could play an important role in tackling these issues. These tools, they argue, can detect suspicious behaviour in real time, automate evidence collection, and reduce reliance on manual processing, thereby cutting costs and improving turnaround times.
Furthermore, orchestration layers, platforms that enable real-time integration and communication between different stakeholders in the payments ecosystem, are being promoted as a means to streamline operations. Internal figures from RS2 and ACI Worldwide suggest that such solutions have the potential to reduce the cost of managing disputes and chargebacks by up to 38.5%.
Representatives from both companies maintain that without technological intervention, rising dispute volumes may continue to erode consumer confidence and shrink merchant margins. They assert that real-time intelligence and automated systems are now essential components in protecting the integrity of Brazil’s digital payments landscape.
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