Wednesday, May 16th, 2018
New rules concerning chargeback disputes came into force. Are you aware of them? Are you prepared? What’s going to change for merchants? How can you get approved for reliable and affordable merchant services, including the best merchant account? Just keep on reading and you’ll know.
Chargeback and Disputes Processing: New Rules
Visa is changing the way the company handles disputed transactions. As you know, these are also referred to as chargebacks within the payments industry. These new rules, called the Visa Claims Resolution (VCR) initiative, took effect on 15 April 2018.
What’s going to change this initiative? Well, it aims at improving the efficiency of handling disputes. Also, it aims to reduce the number of invalid chargebacks.
In fact, chargebacks have always represented an affair that’s time-consuming and costly for both merchant acquirers and issuers. This, as a result, significantly affects the bottom line in a way that’s far away from being positive if not resolved in time.
Currently, disputes must be resolved within 45 calendar days. As of 15 April 2018, the process requires 30 calendar days. What does this mean? The total time to resolve a dispute will take less time, and you’ll receive your funds within a shortened timeframe.
With all these changes in mind, it’s critical for merchants to work only with reputable payment processors to get the best for one’s business needs. By turning to a payments expert like Best Payment Providers, you can get the best deal, including the best merchant account, for your online business in the UK.
Best Payment Providers is a comparison company that offers merchants free consultation and reviews contracts, rates, as well as fees. The integration requirements are as much important as fees and customer service. That’s the reason why Best Payment Providers checks each provider’s integration process to make sure you get a smooth transition and onboarding process.
What Will Change
The mentioned reduction in the timeline implies that the time to be spent on chargeback investigation is significantly reduced. This means you’ll need to act upon any notifications you receive immediately without wasting time.
Acquirers and merchants should focus on making the chargeback resolution process more efficient so to meet the new reduced turn time.
What will be after that date? Well, all individual transactions will fall under “subscription” or “card-on-file” classification. The later suggests merchants should follow the card-on-file transaction guidelines. If you fail to comply with these new stipulations after the deadline, you could be charged fines from Visa.
So, what should you do?
- Clearly understand the new dispute reason codes to generate a quicker response
- Customize existing technology for the incorporation of the new reason codes
- Enter into a partnership with an experienced third-party firm for dispute and chargeback management, with in-built Service Level Agreements to meet your requirements.
With the new initiative, Visa aims to proactively remove invalid disputes, promote automated liability assignment, and make the current timeframe of chargeback resolution shorter. To get the best for your business, work only with a respectable processor.