Visa Claims Resolution (VCR): What Merchants Should Know


claims resolutions (VCR) has been released globally by visa for dispute resolution process. All disputes the VCR will process whether it is small or big AND IT IS MODERATED BY VISA’S AUTOMATED TOOL, Visa Resolve Online (VROL). This is really the mandatory change for all the issuers and acquirers. There are so many industries – Travel, Pharmacy, Online gaming, Online dating and virtually anything subscription-based – that fall under the high risk category due to the affinity for chargeback disputes. This is correct the reason high risk merchants need to acclimate themselves with Visa’s Claims Resolution.

For many years, the overall state of mind among merchants has been that the chargeback dispute process supports the consumer and that they are consistently at a disadvantage.

What High-Risk Merchants May Not Know

Visa found that It takes around 46 or more days to resolve a chargebacks, which is too much and they also realized that a lot of money was being burned in this process which is really a big loss and this is not only their money this is the money that belonged to merchants, processor and e-commerce platforms also.

Visa’s average was 46 days in dispute resolution. Sometimes it will take more than 100 days to resolve a dispute which is quite a long time. This is the main reason to get their VCR’S idea into the framework. It actually designed to reduce cost, time and the chargebacks.

Opportunities with Visa Claims Resolution

There are so many opportunities that will streamline the process, some are as follows:

Resolving Conflicts with Merchant Process Inquiry

Visa will consolidate 22 chargeback reason codes into 4 dispute groups. These 4 groups are Fraud, Authorization, Processing Errors and Unrecognized transaction. A new process called Merchant Process Inquiry has been introduced, where immediate transaction information is provided to help cardholders recognize any queried transactions. Immediate information required includes the purchase information, digital receipt, and order details.

Changing from Litigation to Liability

By implementing this VCR process the dispute processes were started changing from “litigation-based” to “liability-assignment.” There are two avenues within VCR to discuss:
Allocation- By the help of data, which is available with Visa, they will determine the real-time that is liable for the dispute. With VCR there are inbuilt edits with the help of which they are able to stop invalid chargebacks of fraud and authorization type. Allocation tactic is aimed at fraud and authorization type disputes. Visa will perform a series of automated checks. These checks are for few things like:

  • Was the fraud dispute is on 3D secure authorized transactions?
  • Did the cardholder dispute the purchase after the allotted timeframe?
  • Did the cardholder already receive a refund from the disputed charge?

Collaboration: Collaboration mainly focuses on consumer dispute and processing error disputes. Now every issuer, acquirers, and merchants will have the opportunity to collaborate and provide evidence where required.

Reducing Timelines: The time taken for resolving any disputes will be reduced. Currently, the process will take an average of 46-100 days, depending upon the case. However, with VCR, industry members expect:

  • 31-70 days for fraud and authorization type of chargebacks.
  • 31-100 days for customer disputes and processing error chargebacks.

New Reason Codes (This table should be use in New Reason Codes Section)

Visa Claims Resolution is all about streamlining the dispute process. The previous Visa chargeback reason codes are listed below:

Current Visa Dispute Reason Codes
Fraud Authorization Processing Errors Consumer Disputes
62 – Counterfeit Transaction 70 – Card Recovery Bulletin or Exception File 74 – Late Presentment 30 – Services Not Provided
81 – Fraud – Card Present 71 – Decline Authorization 76 – Incorrect Currency or Transaction Code 41 – Cancelled Recurring Transaction
83 – Fraud – Card Absent 72 – No Authorization 77 – Non-Matching Account Number 53 – Not As Described or Defective Merchandise
93 – Merchant Fraud Performance 73 – Expired Card 80 – Incorrect Transaction Amount or Number 85 – Credit Not Processed
78 – Service Code Violation 82 – Duplicate Processing 90 – Non-Receipt of Cash or Load Transaction Value
86 – Paid by Other Means

Visa’s new process introduces four types of disputes categorizes (Fraud-10, Authorization- 11, Processing Errors- 12, Consumer Disputes-13) some of the old codes will be split into two codes which will help address more specific disputes. For example, Visa chargeback reason code 76 was used to label disputes as either having an incorrect currency or an incorrect transaction code. Now both disputes have their own code.

Here are the new reason codes:

VCR Dispute Reason Codes
Fraud (10) Authorization (11) Processing Errors (12) Consumer Disputes (13)
10.1 – EMV Liability Shift Counterfeit Fraud 11.1 – Card Recovery Bulletin 12.1 – Late Presentment 13.1 – Merchandise/Services Not Received
10.2 – EMV Liability Shift Non-Counterfeit Fraud 11.2 – Declined Authorization 12.2 – Incorrect Transaction Code 13.2 – Cancelled Recurring
10.3 – Other Fraud – Card Present Environment 11.3 – No Authorization 12.3 – Incorrect Currency 13.3 – Not As Described or Defective Merchandise/Services
10.4 – Other Fraud – Card Absent Environment 12.4 – Incorrect Account Number 13.4 – Counterfeit Merchandise
10.5 – Visa Fraud Monitoring Program 12.5 – Incorrect Amount 13.5 – Misrepresentation
12.6 – Duplicate Processing/Paid by Other means 13.6 – Credit Not Processed
12.7 – Invalid Data 13.7 – Cancelled Merchandise/Services
13.8 – Original Credit Transaction Not Accepted
13.9 – Non-Receipt of Cash or Load Transaction Value

Visa will keep on giving information to merchants when they need it. They will probably enable merchants to understand the purpose behind the dispute. Issuers will also be required to fill out a Dispute Questionnaire. This gives them a chance to give the necessary information to all gatherings before the dispute is started. And by ‘dispute’, they mean chargeback.

New Codes, New Evidence?

The convincing proof related to each reason code won’t be official until Visa releases its new rules and regulations. But there doesn’t appear to be a lot of changes. That could mean merchant will accumulate the same compelling evidence.

Let’s give you an illustration. This shows what compelling evidence is required for fraud chargebacks of an e-commerce transaction for digital goods:

Compelling Evidence Comparison


81 – Fraud – Card Absent
You have to give a depiction of the downloaded products or services. It’ll be extraordinary to include the download date and time of such goods or services. You’ll have to incorporate at least two of the following information:
You can include the buyer’s IP address and the device’s geographical location. It’ll have to show it was included at the date and time of the transaction.
You can incorporate the device ID number and its name (if accessible).
You can also incorporate the buyer’s name and email address linked to the client profile. It’ll be incredible be extraordinary to show it on record with the merchant.
You can give proof that the cardholder accessed the profile related to the purchase. It’ll be extraordinary to demonstrate confirmation that it’s available on the merchant’s site. In any case, you need to show that the merchant confirmed the buy before the transaction date.
You can demonstrate that the merchant’s site or application was accessed by the cardholder. In any case, you have to ensure it’s related to the products or services on or after the transaction date.
You have to give proof of the device and card utilized in the questioned transaction. But you have to prove that the device and card were equivalent to in any previous, undisputed transactions.


10.4 – Other Fraud – Card Absent Environment
Merchants require a description of the services that were effectively downloaded. It’ll have to show the download date and time of such services. You’ll have to incorporate at least two of the following data:
Merchants can incorporate the buyer’s IP address and the gadget geological  location. It’ll have to indicate it was involved at the date and time of the transaction.
Merchants can incorporate the device ID number and the name of device (if available).
They can also incorporate the buyer’s name and email deliver connected to the client profile. It’ll be incredible to show that it was held by the Merchant.
Merchants can give proof that the cardholder got to the profile related with the buy. It’ll be incredible to show evidence that it’s accessible on the merchant’s site. In any case, you have to show that the buy has been confirmed by the merchant before the transaction date.
They have to show that their site or application was accessed to by the cardholder. But you have to ensure it’s related to the merchandise or services on or after the transaction date.
Merchants can give proof that a similar device and card was utilized in the questioned transaction. Be that as it may, you have to show that the device and card were utilized in any past transaction that was not disputed.

How Will This Affect the Use of Visa Resolve Online (VROL)?

Under this new initiative of VCR, VROL will play an ever-important role than before:

  • Now an issuer must request a Transaction inquiry by the help of VROL before initiating any dispute.
  • Through VROL, financial messages will be available to the issuers and acquirers.
  • Having an option for issuer and acquirer to initiate the financial messages via VROL while using existing systems for fraud report submissions.
  • VROL is the central mean of communication between parties in the dispute process.

What Benefits Will VCR Bring?

  • VCR is the platforms that simplify the dispute process by collapsing 22 chargeback reason codes to only four dispute groups.
  • The timeframe for the dispute resolution will be reduced by which now the recovery will be possible in a shorter period.
  • The inquiry made by the merchant will be beneficial, as the cardholder will receive details of the transaction at the first point of contact. This will reduce the amount of first-cycle chargebacks submitted
  • By using existing data and applying automatic, real-time liability assignment, financial institutions will be able to eliminate invalid disputes.


Mainly visa claims resolution is to save time and increase efficiencies. Here something to know by the merchants:

  • The timeframe to submit the response has shrunk from 45 days to 30 days.
  • Invalid chargebacks are stopped before they reach the merchant through the new automated system
  • Reason codes are now in a more organizational way. However, the compelling evidence remains largely unchanged from what was previously they accepted.
  • When the merchant can definitely prove the dispute is invalid then only fraud and authorization chargebacks responses are allowed.

The new chargeback resolution model will impact all the parties, which are involved in the payment, parties are like issuers and acquirers, merchants and payment processors.

Merchant Credit Card Processing With Ipaytotal

To find out more about Visa Claims Resolution (VCR) including support for chargeback prevention, mitigation, and even reversal. Give us a call at +44 800 776 5988 or get in touch with us through our website. Even if you’re not a customer of ours, we want to help you understand the process so you can make the best decisions for your business. We believe transparency and proactive education is the best policy.

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