Disputes and Chargebacks



Vantiv, now Worldpay is dedicated to providing you with up-to-date, comprehensive information regarding changes that impact you and your business. Click on the card brands below for important disputes and chargebacks information.

  • Visa

    Visa recently introduced the Visa Claims Resolution (VCR) initiative, a new streamlined dispute process. Mastercard is expected to announce similar changes in 2019. This page is your one-stop resource for information regarding the new dispute and chargeback processes.

    Visa Claims Resolution (VCR) Overview

    Visa Claims Resolution (VCR) is Visa’s new dispute (chargeback) program. The primary objective of VCR is to streamline the dispute process while migrating from a litigation-based dispute model to a liability assignment model. In addition, the process will proactively eliminate invalid disputes by leveraging existing data where possible. VCR will provide enhanced dispute rules that reduce timeframes and offer a faster end-to-end cycle time for resolution.

    Effective April 14, 2018 every merchant, acquirer and issuer worldwide that processes through the Visa network will be required to implement the new VCR program rules.

    What’s changing with VCR?

    • Visa has consolidated the 22 legacy reason codes into four dispute categories:
      • 10 – Fraud
      • 11 - Authorization
      • 12 - Processing Errors
      • 13 - Consumer Disputes
    • The four dispute categories are grouped into two distinct processes:
      • Allocation (10 and 11)
      • Collaboration (12 and 13)
    • Visa has shortened the end-to-end cycle for dispute resolution to 30 days.
    • No provisional credit will be given for the Allocation dispute process when a dispute is challenged.
    • Invalid disputes will be blocked when processed through the new set of business rules.
    • Chargeback processes and systems will be updated to reflect the new reason codes and case statuses effective April 14, 2018.

    For more information about how VCR will impact your business, please refer to the following documentation:

    Core, Terminal and Integrated Payments Merchants
    Webinar recordings
    eCommerce Merchants
    Webinar recordings
    Charts Activity File Overview
    Questionnaire Questionnaire
    VCR Core Training: (slides) VCR eComm Training (slides)
    Core, Terminal and Integrated Payments Merchants
    Downloadable resources
    eCommerce Merchants
    Downloadable resources
    VCR Manual VCR Manual
    Chargeback 101 Chargeback 101
    PIN iQ
    Charts (Applicable to Core and IP merchants only) Fees
    iQ Compelling Evidence Decision Tree
    VCR Questions by Code  
    Compelling Evidence Decision Tree  
    Visa Resources
    Visa's Merchant Dispute Guide



  • Mastercard


    Mastercard Claims Manager (Effective April 2019)

    Why is Mastercard changing the Dispute Resolution process?

    • Significant increase in improper/invalid chargebacks and representments
    • Increase in chargebacks under $25 (+15%)
    • Significant increase in non-fraud disputes
    • Chargeback timeframes and processes haven’t changed in more than 20 years
    • To reduce the number of improper compliance cases

    What is changing with the Mastercard Dispute Resolution Initiative?

    • Chargeback reason code consolidation into four categories:
      • Authorization
      • Card Member Disputes
      • Fraud
      • Processing Errors (which Mastercard refers to as Point-of-Interaction Errors)
    • Eliminate second chargeback cycle and move applicable documentation requirements to first chargeback

    • Reduce first chargeback timeframe from 120 days to 90 days for Point-of-Interaction Error disputes (excludes Fraud, Authorization and Cardholder disputes)

    • Reduce pre-compliance and compliance case filing timeframes from 180 days to 90 days

    What are the timeframe changes for Mastercard’s Dispute Rules?

    Timeframes Feature Reason Code Dispute Rule Changes
      4853 Cardholder Disputes Consolidated Family No change, max 120 days
      4808 Authorization-Related Disputes Consolidated Family No change, max 90 days
      Fraud Dispute Reason Codes No change, max 90 days
      4834 Point-of-Interaction Error Disputes Consolidated Family Max 90 days
      All other legacy non-consolidated non-family reason codes No change, max 120 days
    Other Chargeback Cycles Change to 2 cycles
      Pre-Arbitration Requirements Required on Fraud, Cardholder Disputes and possibly some POI Error Disputes


    What are the benefits of these changes?

    • Streamline and condense chargeback lifecycle
    • Reduce complexity within the dispute channel and shorten processing time frames
    • Move to a two-cycle chargeback process, consisting of the first chargeback and representment
    • Simplify single and dual message chargeback reason codes


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