There has been much talk about the changes being handed down from Visa related to chargebacks. Whether you’re a merchant, ISO, processor or even an agent you should be aware of what the changes are and how they will impact your business.
Below we’ve outlined in a very general form the changes being enacted as well as some best practices on how to manage the updates.
1) Fraud coded chargebacks (see this link for chargeback reason codes) will no longer require the card holder to sign an affidavit confirming they were not responsible for the transaction. Issuers may now submit the information in electronic form.
– The statement, “card holder neither authorized or participated in the transaction” will still be required to be submitted in electronic form.
– It’s important to note that this is not a mandate only a requirement change and issuers may still request a card holder letter to support a fraud related dispute
2) Documentation is no longer required for non fraud related chargeback reason codes
Adapting your Business to the New Changes
In my experience it’s best to anticipate the potential fall out and make any necessary adjustments, or at least have the ability to be mobile to react once new changes are implemented. So whether you’re using a manual or automated chargeback disputation process be sure your system is prepared to handle the changes related to document requests. Training agents who fight your chargebacks for you is also important if you use in house staff. Make sure agents are not attempting to dispute chargebacks on technical reasons as this will not work.
Update or add wording on your site at the check out process ensuring everyone who makes a purchase from you that your company takes all disputes seriously and will do everything within the law to persecute those committing fraud.
What else do you think can be done, or are you doing to prepare for the changes? We’d like to know!