Collaboration in Visa disputes
The Collaboration flow is used in the processing of non-fraud disputes related to processing errors and consumer disputes. The Collaboration flow determines the process for Visa disputes that are in the Processing Errors and Consumer Disputes dispute categories, as shown in the following table:
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Flow |
Dispute category |
Dispute subcategory |
|
Collaboration |
12 – Processing Errors |
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12.2 – Incorrect Transaction Code |
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12.3 – Incorrect Currency |
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12.4 – Incorrect Account Number |
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12.5 – Incorrect Amount |
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12.6.1 – Duplicate Processing |
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12.6.2 – Paid by Other Means |
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12.7 – Invalid Data |
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13 – Consumer Disputes |
13.1 – Merchandise/Services Not Received |
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13.2 – Cancelled Recurring Transaction |
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13.3 – Not as Described/Defective |
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13.4 – Counterfeit Merchandise |
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13.5 - Misrepresentation |
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13.6 – Credit Not Processed |
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13.7 – Cancelled Merchandise/Services |
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13.8 – Original Credit Not Accepted |
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13.9 – Non-Receipt of Cash/Load |
Flow diagram
The following figure shows the Visa Collaboration flowchart for billing error and service dispute resolution:
Key points
The below are the key points that determine the Collaboration flow:
- When a cardholder disputes a transaction, the Issuer sends the transaction to the Acquirer along with the chargeback reason through the card network.
- The Acquirer might send the received chargeback to the merchant or respond directly. The Acquirer can respond by accepting or rejecting. If accepted, the system resolves the dispute in the Issuer's favor. The system forwards the rejection to the Issuer through the card network. Partial acceptance is also possible.
- The Issuer initiates the pre-arbitration against the Acquirer through the card network if the Issuer is not ready to accept the response.
- The Acquirer reviews the pre-arbitration along with the merchant (if needed) and sends the pre-arbitration response of acceptance or rejection to the Issuer through the card network.
- The Issuer reviews the pre-arbitration response received and Issuer files an arbitration case with the card network if the customer is dissatisfied with the response.
- The card network reviews the arbitration and provides an acknowledgment if the details are correct and then provides the final ruling deciding the liable party between the Acquirer and Issuer.
- Either the Issuer or Acquirer can initiate an appeal if they are not satisfied with the ruling and the dispute amount is at least USD 5,000. The ruling provided on appeal is considered final.
- In a Collaboration case, Visa settles the funds to Issuer on chargeback submission and if Acquirer declines the chargeback the funds are moved back to Acquirer. The funds would be with the Acquirer until liability is decided.
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