Merchants Still Sorting Through Visa’s New Chargeback Rules
Chargebacks. Every merchant’s worst nightmare involves chargebacks. They are hard to manage and incredibly expensive. And the new chargeback rules under Visa’s VCR have only made the process more complicated.
Ecommerce merchants have long-stated that chargeback rules are unclear and unfair. In April, Visa took steps to address merchants’ concerns by launching Visa Claims Resolution (VCR) process. This action completed overhauled the rules governing when and how disputed online transactions are resolved.
In addition, the San Francisco-based card network created a global, data-driven management system: Visa Resolve Online (VROL). The purpose of this measure was to automate the tedious process and eliminate up front as many disputes as possible. In case there are any further concerns or questions about how the process has changed for disputes, Card Not Present has also produced a guide to help them better understand the changes.
The guide helps merchants:
- Examine changes to the response window
- Explains how the reason code for chargebacks have been consolidated
- And includes other changes that have been made to streamline the process
The goal of Visa’s massive changes has been to reduce dispute volume, provide proactive dispute resolution and identify, track and monitor abuse. Overall, enhance each customer’s experience.
Unfortunately, not all merchants are aware or prepared for these changes. If you are just now hearing of Visa’s chargeback process, here are a few changes you should be making:
- Create a plan for responding to chargebacks faster.
- Develop a process for determining whether you have response documentation for each reason code.
- Prepare to respond to chargebacks as quickly as possible.
Where to Find Chargeback Protection for Your Small Business
Are you in need of chargeback protection for your business? With the right merchant provider, your business will have the services and support it needs to prevent chargebacks. The key is to choose a merchant provider that specializes in working with your business type and industry.
Each industry has its own unique set of challenges. Your business will also have its own unique needs. The merchant provider you partner with should understand both and have an expert team ready to help you whenever you have questions or concerns. With their help and their chargeback protection and prevention programs, you will be able to reduce your business’ risk to chargebacks and create a seamless customer experience.
Author Bio:Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants. His passions include producing music, and traveling.