Chargebacks911 Urges eCommerce Merchants to Prepare for New Visa Claims Resolution (VCR) Process Changes

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Visa recently announced forthcoming changes to its dispute-resolution process. Risk management firm Chargebacks911 examines what these updates will mean for eCommerce merchants, and shares advice on how best to prepare for them.

Monica Eaton-Cardone, co-founder and Chief Operating Officer (COO) of Chargebacks911, advises merchants to prepare for new Visa Claim Resolution process changes

Though Visa’s new VCR initiative is intended to remove friction from the chargeback process, this type of system cannot be truly effective without regulations and standards.

Earlier this year, Visa announced that it will be implementing a new chargeback dispute process known as the Visa Claims Resolution (VCR) initiative.(1) Chargebacks911, a leading dispute mitigation and risk management firm, applauds Visa’s long-term goal of improving processes and expediting resolution but emphasizes that the move could have unanticipated implications for many merchants. The company counsels merchants to actively engage in representment and maintain detailed supporting data; otherwise, they risk losing a growing proportion of revenues to chargebacks and friendly fraud.

Under the new VCR initiative, Visa aims to streamline the processing of disputed transactions, expedite resolution and eliminate invalid disputes whenever possible. However, these changes will require merchants to play a much more active role in the process. Not only must they maintain a detailed transaction database and be able to submit compelling evidence to Visa on demand, but they must be prepared to dispute the majority of chargebacks or face costly financial consequences.

“While Visa’s communications focus on the benefits of VCR, merchants are facing major changes that will require more work and effort on their behalf,” asserted Monica Eaton-Cardone, co-founder and Chief Operating Officer (COO) of Chargebacks911. “Similar to the implications merchants are experiencing as a result of MasterCard’s dispute administration fee, the new VCR initiative means that merchants will have to effectively represent each and every dispute to mitigate rising chargeback losses. Considering that only 2 in 10 merchants are actively engaged in representment, the majority clearly have a very long way to go.”

Eaton-Cardone points out that most merchants have no training in representment methods, as it is not a prerequisite to obtaining a merchant processing account. Responding to disputes requires time and effort, and the rules can be complicated; consequently, Eaton-Cardone says there is often insufficient motivation for merchants to take action until rising chargeback fees and losses threaten their profits. She also stresses that there are currently no standards for basic record-keeping, which can make it challenging for merchants to meet the evolving requirements for compelling evidence in credit card chargeback disputes.

“Though Visa’s new VCR initiative is intended to remove friction from the chargeback process, this type of system cannot be truly effective without regulations and standards,” remarked Eaton-Cardone. “There is an urgent need for the payments industry to focus on compliance and address the current lack of standardization; we must first achieve industry-wide compliance before we can attain equal balance.”

She notes that eCommerce merchants, in particular, have been struggling to combat rising chargebacks and friendly fraud. Visa openly acknowledges that “card-absent merchants may experience higher chargebacks than card-present merchants as the card is not electronic read, which increases liability for chargebacks.”(2) Furthermore, Visa’s efforts to expedite dispute resolution may mean that merchants have less time to gather and submit evidence. Those who “do not respond by the time specified on the request … will not be able to remedy the chargeback.”(2)

“I would advise all merchants to begin preparing for Visa’s enhanced dispute resolution process now,” counsels Eaton-Cardone. “This involves two key steps: preventing transaction disputes and creating compliant representment cases. Merchants who develop these capabilities internally or partner with an experienced chargeback management specialist will not only be VCR-ready, but they’ll also succeed in reducing chargebacks and combating friendly fraud.”

For more information on Chargebacks911 and its comprehensive chargeback management solutions, as well as informational resources for eCommerce merchants and details on Monica Eaton-Cardone’s upcoming seminars and speaking engagements, visit

About Global Risk Technologies and Chargebacks911:

Chargebacks911 is a division of Global Risk Technologies, which is internationally recognized as a leading provider of comprehensive risk management solutions to the payment processing industry. With offices in Europe and the United States, Global Risk Technologies manages over 200 million transactions worldwide each month. Chargebacks911 is headquartered in Tampa Bay, Florida, and specializes in chargeback mitigation and dynamic loss prevention. Founded by merchants in direct response to rising chargebacks and friendly fraud, Chargebacks911 combines insider expertise with proprietary technology and deep analytics to isolate threats, resolve disputes and maximize revenue. From small merchants to the nation’s largest retailers, today thousands of businesses rely on Chargebacks911’s scalable, customizable and fully turnkey solutions to achieve sustainable growth and guaranteed ROI. For more information, visit

1.    Visa. Visa Claims Resolution: Efficient Dispute Processing for Merchants; April 14, 2016.

2.    Visa. Chargeback Management Guidelines for Visa Merchants; May 19, 2016.

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Karla Jo Helms
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