Visa has introduced new technological enhancements to its dispute management system, seeking to ease the burden on merchants dealing with an increasing number of disputes. These updates aim to streamline the process, allowing merchants to retain or recover legitimate sales more efficiently. Visa’s initiative comes in response to a significant rise in dispute volumes, highlighting the need for innovative solutions. As businesses face challenges related to fraudulent chargebacks and the complexities of the disputes process, Visa’s strategic move reflects an emphasis on utilizing technology to improve transaction integrity.
What Steps is Visa Taking?
Visa is making strides by incorporating two AI-powered features into its global dispute processing platform, Visa Resolve Online (VROL). Visa Dispute Intelligence provides merchants with insightful scores and reports, assisting them in deciding whether to proceed with a dispute. Meanwhile, the Visa Dispute Document Analyzer simplifies the submission process by auto-filling dispute forms using documents provided by acquirers on behalf of merchants.
How Will Enhanced Features Impact Merchants?
Merchants stand to benefit significantly from these enhancements, as the new features aim to reduce the time and resources spent on disputes. Addressing both legitimate and fraudulent disputes more effectively can save money and streamline operations. In addition, Visa has updated its Acquirer Monitoring Program to bolster risk controls and oversight, and revised its dispute program rules to better combat friendly fraud.
Rob Cameron, Visa’s global head of acceptance solutions, emphasized the importance of these developments:
“Visa’s innovative new features will help resolve disputes even faster, alleviating the stress and uncertainty they create for banks, merchants and consumers alike.”
This sentiment underscores Visa’s commitment to resolving disputes efficiently and its focus on enhancing the overall transaction experience for all parties involved.
Visa’s decision to update its dispute management system with AI-driven tools responds to a notable increase in dispute volumes, which have surged by 50% since 2019, reaching 100 million disputes globally in 2023. Industry analysts had predicted rising concerns over credit card charges and friendly fraud, which Visa addresses head-on with its latest updates. Previously, the company had been exploring ways to balance fraud reduction without negatively impacting honest consumers, striving for a more robust and fair system.
Visa’s advancements illustrate the growing role of AI in financial transactions, offering a glimpse into the future of dispute resolution. By leveraging AI, Visa aims to refine the accuracy and efficiency of its processes, potentially setting a standard for other financial institutions to follow. As the industry continues to evolve, these enhancements could lead to improved customer service and more effective allocation of resources.
