Are CHARGEBACKS becoming a problem?

Visa to introduce new Visa Claims Resolution (VCR) 04.13.18

Customer disputes are a laborious ordeal to say the least. The entire process can last months without a guaranteed outcome in your favor. In some cases, a dispute can be re-opened even after winning the initial decision in your favor. Most merchants don’t want to bother with the processes because of the length of time involved to present a case, and the potential fees involved if the card brands take the dispute to arbitration.


The EMV Chip solution has helped to decrease fraudulent claims, but card brands such as Visa are still seeing a rise in the number of card transactions. As they increase, so have the cost and processing times.

Visa has reacted to this problem by announcing the rollout of their new Visa Claims Resolution (VCR) dispute process. Merchant will see a simplified dispute process starting April 13th , 2018 that will shorten the number of days for chargeback responses to 10 days.

How will this affect your business?

Merchants will see updated dispute letters with new dispute reason codes. Visa’s system edits will provide an added layer of protection to the dispute ecosystem thereby reducing the number of disputes leveraged against merchants. Also, more information will be provided up front, so less back and forth exchange of documents and information.


If you have more specific questions on how Chargebacks may affect your business, or how to minimize your chargeback liability, feel free to contact Merchant Intelligence Report at