Fraud-related Disputes (VISA)

Fraud-related chargebacks make up the majority of all chargebacks TrustPay’s merchant receives; they make up almost 90% of the grand total of the chargebacks we get.

Herein, we shall take a closer look at fraud-related disputes as processed by Visa.

Visa Resolve Online

Since April 2018, all disputes are processed by means of Visa Claims Resolution VCR and they are moderated by Visa’s own automated tool, Visa Resolve Online (VROL). This means that Visa will proactively provide an automated dispute decision based on the Visa rules. Hence the dispute process is more data-driven and disputes can be blocked before they happen.

An example of such a decision-making process is how following rules are enforced to block invalid card-not-present disputes from entering the system:

Maximum Fraud per Account

Visa puts a limit (35) on the number of card-absent fraud disputes that can be processed on a single account number within a 120-day time period.

Block Future Fraud If Account Not Closed

It is up to the issuer to decide if they wish to close an account once fraud is reported. However, failure to close an account prevents the issuer from initiating fraud disputes on any new transactions on that account, across all merchants.

Even so, should TrustPay spot a chargeback that has fallen through this elimination process, e.g. fraud chargeback that was filed past the 120-day chargeback period, such chargeback will be represented by TrustPay without any request from the merchant.

Additionally, acquirers and merchants still can respond to the fraud-related disputes and represent the chargeback, under certain conditions.

Such conditions are for example:

  • Cardholder No Longer Wishes to Dispute
  • Compelling Evidence
  • Credit Processed (transaction was refunded before it was charged back)
  • Invalid Dispute (e.g. past 120-day chargeback period)

Compelling Evidence

Merchants can still contradict the fraud-related chargeback with proof of the validity of the original transaction. Here are some examples of Visa’s accepted compelling evidence:

For a transaction representing the sale of digital goods downloaded from a Merchant’s website or application, the proof can be a description of the merchandise or services successfully downloaded, the date and time such merchandise or services were downloaded, and two or more of the following:

  • Purchaser’s IP address and the device geographical location at the date and time of the Transaction
  • Device ID number and name of the device (if available)
  • Purchaser’s name and email address linked to the customer profile held by the Merchant
  • Evidence that the profile set up by the purchaser on the Merchant’s website or application was accessed by the purchaser and has been successfully verified by the Merchant before the Transaction Date
  • Proof that the Merchant’s website or application was accessed by the Cardholder for merchandise or services on or after the Transaction Date
  • Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction that was not disputed

Recurring Transaction

For a Recurring Transaction, all of the following:

  • Evidence of a legally binding contract held between the Merchant and the Cardholder
  • Proof the Cardholder is using the merchandise or services
  • Evidence of a previous Transaction that was not disputed

If you want to learn more about successful chargeback representment, please, contact us.

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