C86 regulation

Based on the regulatory guidelines, Pega Smart Dispute Agentic Automation addresses the following three key scenarios under the C86 regulation:

1. Report of unauthorized use: If the cardholder reported to the issuing bank that their credit card, the account information, or personal authentication details have been lost, stolen, or at risk of unauthorized use, then the cardholder is not liable for any unauthorized transactions after making the report.
2. Liability of unauthorized use: The maximum liability of the cardholder for a claim for the unauthorized use of their credit cards is CAD 50 unless the cardholder has demonstrated gross negligence in safeguarding the credit card, the account information, or the personal authentication information; in this scenario, the cardholder might be liable for the entire transaction amount.
3. Personal authentication information: If the cardholder has demonstrated gross negligence in safeguarding the credit card information, the account information, or the personal authentication information, the cardholder might be held liable for the entire transaction amount.

A dispute is eligible for C86 only for Canada issued credit cards on Fraud disputes. The eligibility criteria include the following

• Card type: Credit
• Issuer country code: CA OR CAN or 124
• Exception type: Fraud

When a Initiate Visa Dispute Case fulfils C86 eligibility criteria, the Case displays a new question in the Supplemental information View, which helps clarify whether the cardholder has already reported any suspicious activity on the card from which the transactions are disputed, as shown in the following figure:

Dispute liability processing scenarios under C86 regulation:

During the processing of a dispute Case, if the dispute Case is eligible C86-liabilility, then the Case adheres to one of the following scenarios:

1. If the cardholder reports suspicious activity on the disputed card during the Collect supplemental info Step. The cardholder cannot be held liable for any decline reason or the entire dispute amount.
   
   Consider the following dispute scenario: The cardholder reports suspicious activity on the disputed card. The Issuer holds the cardholder liable for CAD 40 and selects confirmed fraud or gross negligence of the cardholder as the reason for declining the dispute. The Pega Smart Dispute Agentic Automation application supports the C86 regulation by resolving the dispute Case with the As the customer has reported the fraud on the same card before the transaction took place, liability is not permitted message.