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Disputes and Chargebacks

 

 

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
    Fees  
    VCR Questions by Code  
    Compelling Evidence Decision Tree  
    Visa Resources
    Visa's Merchant Dispute Guide

     

     

  • Mastercard

     

    Mastercard Claims Manager (Effective April 2019)

    Mastercard announced that the arbitration chargeback and mandated pre-arbitration process changes for dual message disputes will move from April 12, 2019 to April 17, 2020. The schedule for the remaining previously announced changes involving reason code consolidation and API interaction with Mastercard have not changed. The scope adjustment should allow us to process chargebacks on the enhanced system, and address any code and process issues before removing the arbitration chargeback.

    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?

    • Real-time dispute processing between Worldpay and MasterCard
      • Enables self-service for merchants
    • Updating DM Activity File to include Mastercard dispute data
      • File layout updates to reflect MCM
    • Rules and process changes
      • In 2020, pre-arbitrations will replace second chargebacks
        • Issuers will send pre-arbs and file arbitration instead of merchant
      • MasterCard is encouraging all parties to switch to consolidated reason codes (see slide 5).

    What is not changing with the Mastercard Dispute Resolution Initiative?

    • Timeframes for merchants to respond
      • 45 days to represent a chargeback
        • 30 days to respond to a retrieval request
      • Dispute process
        • Until 2020, it will remain chargeback/representment/second chargeback/pre-arb/arb.
    New description and reason code Encompasses these existing reason codes
    4808 – Authorization Related 4807- Warning Bulletin
    4808 – Required Auth not Obtained or Declined
    4812 – Account Number Not on File
    4853 – Cardholder Disputes 4841 – Cancelled Recurring or Digital Goods Transaction
    4853 – Defective/Not as Described
    4855 – Goods or Services Not Provided
    4859 – Addendum, No Sow or ATM Dispute
    4860 – Credit Not Processed
    4834 – Point of Interaction Errors 4831 – Incorrect Transaction Amount
    4842 – Late Presentment
    4846 – Correct Transaction Currency Code Not Provided
    4859 – Addendum, No Show or ATM Dispute

     

    Reason Code Number and Name Changes
    4837–No Cardholder Authorization
    4840 – Fraudulent Processing of Transactions
    4849 – Questionable Merchant Activity
    4863 – Cardholder Does Not Recognize
    4870 – Chip Liability Shift
    4871 – Chip Liability Shift – Lost/Stolen/NRI
    MC will reject first chargebacks with reason code 4840 if initiated after 4/12/19.
    MC will reject first chargebacks with reason code 4863 at a date to be determined.

     

  • Disputes webinars

    Worldpay offers our merchants access to upcoming and recorded webinars on all topics related to disputes.

    Merchant Online Training LIVE!

    Introduction to iQ LIVE!

    In this introduction to the iQ system, our iQ trainers will walk new users through the iQ basics including technology requirements, a tour of the Dashboard, and where to go for help. We'll also review how to use the Reconciliation, Disputes, and Reports & Statements tabs. The live training allows users to ask questions through the GoToWebinar tool. Click the link below to view available class dates and times. The list is updated regularly.

    View Classes

    Merchant Disputes 101: The Basics LIVE!

    In the 101 course we define what a chargeback (dispute) is, learn about the different stages and terms, and how to avoid a dispute. We show how to set up alerts, pull reports, and research disputed transactions all using the iQ system. Click the link below to view available class dates and times. The list is updated regularly.

    View Classes

    Merchant Disputes 201: PIN Adjustments & PIN Disputes LIVE!

    After attending the training you will understand what a PIN-Based Transaction is, be able to read the TARR Report, identify a PIN Transaction, initiate a PIN Adjustment, and respond to a PIN Dispute all using iQ.

    Read Report

    On Demand Courses

    These courses can be viewed at any time, day or night, and as many times as you need.

    Introduction to iQ

    Users can view a pre-recorded version of Introduction to iQ by clicking on the link below at any time.

    View Intro

    iQ Administration User

    As an administrator for iQ you have responsibility for setting up additional users, you can also track and unlock users. This slow paced video can be viewed at any time and walks you through each step of the process, including a few short cuts.

    Watch Video

    Statement Retrieval

    If all you need to do is get your monthly statement through iQ, watch this quick video. It’s just over two minutes long and straight to the point.

    Watch Video

    VCR (Visa Claims Resolution)

    In April of 2018, Visa made changes to their dispute process. You can let iQ manage the process or use the Worldpay Dispute Management Website to download questionnaires. This video walks you through the changes including timeframes and shows you how to work a dispute not matter if it’s through iQ or done manually.

    Watch Video

     

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