Lack of Awareness Around Visa Claims Resolution Fees Could Cost Merchants
A Chargeback Gurus survey examining the impact of the Visa Claims Resolution process on merchants, found that a large majority are unaware of new fees associated with dispute non-acknowledgement, and that could impact their bottom line.
Nearly 80 percent of merchants did not know that VCR rules currently in-force mandate that they respond to every chargeback claim, while almost 85 percent didn’t know that there are fees associated with failing to do so.
With penalties ranging from $0.75 to $2.50 per claim, that lack of awareness could have a meaningful bottom-line impact on merchants with higher chargeback volumes.
But VCR isn’t bad news for merchants who stay on-top of changes like this one, as they’re likely to see meaningful cost savings from the new measures.
“VCR has made a real positive impact. Our customers are reporting reduction in their chargeback volume of up to 18 percent," said Suresh Dakshina, Chargeback Gurus co-founder and President. “But those gains may be offset by new fees incurred by merchants who are unaware of the new acknowledgement requirements.”
Maximizing the BenefitsAccording to Dakshina, a noted expert on chargebacks, fraud prevention and customer experience, merchants should do these four things to maximize the benefits of Visa Claims Resolution:
- At a minimum, acknowledge all chargebacks
- Keep up with all of Visa’s regulations, including updates to the VCR process being implemented in 2019
- Identify and eliminate the root causes of chargebacks by analyzing your chargeback data
- Work with industry trade groups or third-party experts who understand VCR regulations and how to implement the mandates effectively
Worth the Investment
“Keeping up with new regulations is tough when you’re running a thriving business,” Dakshina said. “But by investing a little time into understanding the requirements, you can improve your business and avoid problems with chargeback liability.”
More on VCR
To help merchants get up-to-speed on VCR, Chargeback Gurus is offering a free white paper detailing the key aspects of VCR, a roadmap for adjusting to Visa’s new requirements, best practices for handling chargeback disputes, as well as further results from the merchant survey.