VCR, which is already in effect worldwide, standardizes procedures and timetables to resolve disputes between consumers and vendors more efficiently.
“Based on a preliminary roll-out in Hong Kong and New Zealand in October of last year, Visa predicted that the streamlined processes and automation that are built into VCR would reduce the number of credit card disputes,” said Alan Tepfer, director of client strategies and fund recovery at MyChargeBack, “and that is exactly what is now happening in Britain, the U.S. and the rest of the world now that the changes are going global.”
The Consumer Financial Protection Bureau (CFPB) started collecting complaints about credit cards in July of 2011, and as of March 1 of 2017, the agency had handled around 116,200 credit card complaints, with fraudulent charges emerging as a major issue with consumers.
According to the CFPB, consumers have also complained that they have had a hard time getting charges removed, even after receiving notification from the card company that the dispute had been resolved in their favor.
“The most significant improvement in the system is that Visa is taking every possible precaution to avoid disputes before they begin and speed them up once they do,” Tepfer said. “Card holders now receive more detailed monthly statements, improved attention to customer service, an extra layer of security checks, and quicker approval of chargebacks when they are entitled to them.”
A major factor in the service is that it streamlined dispute categories down from 22 to four, as well as reduced the time limit that merchants have to respond from 45 to 30 days, which is scheduled to drop even more to just 20 days.
“A major benefit for consumers is that merchants are now required to disprove customer evidence up front,” Tepfer says. “Since no additional information is allowed be added afterwards, the merchant now has just a single opportunity to deny the consumer’s allegations before Visa reaches its decision regarding the case,” he explains.
“But, in exchange, Visa customers now have just a single opportunity to present all of their evidence and arguments when they open their dispute file,” Tepfer cautions. “This enhances the added value consumers have by working with a fund recovery service like MyChargeBack, which has the experience to make sure that the one chance they have to win their case is handled correctly, professionally and successfully.”
By PYMNTS, posted on May 9, 2018