Visa VCR is slated to be implemented globally by Visa in April 2018 with the purpose of simplifying the Visa dispute process.   The introduction of VCR will streamline the 22 current Visa dispute reason codes into two distinct work streams, each containing two broad categories of disputes:  Allocation, comprised of Fraud and Authorization dispute categories, and Collaboration, comprised of Processing Error and Consumer dispute categories.

Allocation (Fraud and Authorization claims):  Under this work stream, Visa Resolve Online (VROL) will perform automated checks that determine initial liability of the issuer or acquirer of a claim.  Unlike current practices, this liability assignment represents the end of the initial phase of the claim’s lifecycle.  Acquirers who wish to contest assigned liability will need to engage the Arbitration process, beginning with the pre-Arbitration step.  The majority of disputes will fall under the Allocation category.

Collaboration (Processing Errors and Consumer Disputes): This work stream will be similar to current Chargeback processes, requiring interaction between Issuers and Acquirers.  Issuers will file Dispute Requests through VROL, and Acquirers are obliged to respond quickly to the issuer through VROL.  Questionnaires must be completed for most dispute reasons, a few of which will still require supporting documentation from Issuers and Acquirers.

Changes of this magnitude, while intended to simplify and optimize in the long run, can pose substantial challenges to existing software systems and legacy operations.  To ease this transition, Lean Industries has recently introduced a new solution that aims to unify the various, disparate dispute paradigms found throughout the industry – including VCR – into a single platform.

A Solution from Lean Industries: NetworkHub™

NetworkHub™ is a data transformation engine specifically for disputed payment processing.  The platform provides a library of APIs to a variety of payment platforms from networks, gateways and third-party processors.  This includes Visa VROL, Mastercard MCOM, Discover DNDS, Star, NYCE, Pulse, First Data, TSYS and FIS.  Dispute data is supplied to NetworkHub through a universal API that can be integrated into existing dispute workflow systems such as AdjustmentHub™.  Data can also be supplied directly into the stand-alone NH Portal by users.  Once the claims data is supplied into NetworkHub it is then transformed in real-time into the requisite format of the receiving endpoint.

NetworkHub simplifies the dispute process by normalizing across existing industry processes, allowing front-end systems and user processes to be built to a single published standard.  With Lean’s dedication to the disputed payments space, this also means that our systems and processes are future-proof: as the industry evolves, changes to network interface specifications and business mandates are black-boxed, insulating your company against volatility and uncertainty.  In short, NetworkHub is your single data transformation and exchange interface to the world of disputed payments.

Wondering how to navigate the changes surrounding Visa VCR?  NetworkHub™, the first system already in production supporting Visa’s new standard, offers a way forward for this immediately, and offers stability against future industry change.

Dave Patrick is a Business Analyst at Lean Industries with over twenty years of experience in technology, security and payments. He specializes in delivering Lean’s solutions to clients around the world.


Members of Visa can learn more about the changes coming in April 2018 in this brief, informative course available through the Visa Business School.