In an age of quick processing for digital payments, transaction disputes can still take weeks for a resolution or chargeback — an unacceptable time frame for e-commerce. To hasten dispute resolution, some vendors are beginning to offer financial incentives to merchants that agree to speed up the process.
By any measure, if Visa can trim more than two weeks off a chargeback dispute, it should help merchants and cardholders. But like many efforts to improve the payments market, it won't be an easy change.
Although Visa Claims Resolution will require merchants to learn some new rules and routines, the changes are good news for merchants who know what to expect, writes Rafael Lourenco, executive vice president at ClearSale.
Midigator, which markets software to help e-commerce merchants manage payment card chargebacks, has received $30 million in funding from private equity firm LLR Partners to further develop the product.
Having chargebacks have been a consistent thorn in merchants' sides for much of the past decade — and to make matters worse, while 82% of merchants say they actively dispute chargebacks, 24% have no idea what their win rate is.
By inserting the issuer into the dispute process at the outset and arming them with the necessary robust data to prove both customer identity and intent of sale, we can prevent the loss of millions in sales, writes Matthew Katz, CEO of Verifi.