Filing a pre-arbitration and handling its response

This video shows you how to file a pre-arbitration and handle its response in Visa fraud and consumer dispute Cases.

Consider the following business scenario: as an Issuer, U+ Bank, a retail bank, processes several Visa dispute Cases in different dispute categories. For example, a U+ bank back-office agent is processing Visa Dispute Cases in the back-office Portal. A fraud dispute Case and a consumer dispute Case are waiting for his actions to move ahead in the Visa dispute processing. He handles the pre-arbitration and its response Stages in both fraud and consumer disputes.

The back-office agent does this by first logging into the back-office Portal to handle the Visa dispute Cases. He opens a fraud dispute that awaits his action. Because this is a fraud dispute, it is handled through Allocation. He sees that the Acquirer has submitted a Pre-Arbitration to their earlier dispute response. As such, the status of the Case Assignment is Review inbound Pre-Arbitration. In response, the agent can accept full liability or can accept partial liability, or can decline the pre-arbitration. In this scenario, he intends to decline it.

To review the inbound Pre-Arbitration, under Arbitration in the Review inbound Pre-Arbitration Assignment, click Go.

In the Review Pre-Arbitration response view, review the Acquirer's Pre-Arbitration.

In the Select appropriate action list, select Decline.

In the Reason for not accepting full liability field, enter Cardholder is not at fault and there has been no negligence by the cardholder.

In the Supporting documents section, click the +Add Visa supporting documents link to add the relevant supporting documents. Adding supporting documents is not mandatory.

Click Submit.

The Issuer's Pre-Arbitration response is submitted to Visa, which is then forwarded to the Acquirer for response. As such, the Case Assignment moves to Awaiting Acquirer response. Pega Smart Dispute's batch queue processors periodically check and fetch the responses from the Visa and put them into its databases. A job scheduler then goes through each response and moves the respective dispute Case to their next Case Assignment state, based on the Acquirer response received.

If the Acquirer chooses to file an Arbitration as the response to the Issuer's Pre-Arbitration response, then the Case Assignment moves to Awaiting Arbitration Acknowledgement for the card network, Visa, to act on the Case.

The back-office agent then opens the consumer dispute Case that awaits his action. Because this is a consumer dispute, it is handled through Collaboration. The dispute was declined by the Acquirer. The back-office agent initiates Pre-Arbitration to process the dispute Case further.

In the Initiate Pre-Arbitration view, you can see that you are not changing the disputed amount, and the outstanding dispute amount is USD 400.

In the Reason for initiating Pre Arbitration, enter Cardholder is not satisfied with Acquirer's response.

In the Are you changing your dispute category/condition? and Are you providing new information? lists, continue with the default selection No. If needed, the back-office agent can select Yes and update the dispute Case accordingly.

In the Notes textbox, you can optionally enter any relevant notes.

In the Supporting documents section, click the +Add Visa supporting documents link to add the relevant supporting documents. Adding supporting documents is not mandatory.

Click Submit.

This dispute Case is now submitted to Visa and then Visa forwards the case to the Acquirer for their Pre-Arbitration response. As such, the status of the Case Assignment is Awaiting Pre-Arbitration response.

The Acquirer responds to the Pre-Arbitration and sends its response back to Visa. Pega Smart Dispute's batch queue processors periodically check and fetch the responses from Visa and put them into its databases. A job scheduler then goes through each response and maps it to the respective dispute Case in the application. The Case Assignment then moves to the Review Pre-Arbitration response state for the Issuer to review the Acquirer's response.

To review the Pre-Arbitration response, in the Arbitration tab in the Review Pre-Arbitration response Assignment, click Go.

In the Review Pre-Arbitration response view, the Issuer reviews the Acquirer's response. The Acquirer has declined the Pre-Arbitration. The Issuer now responds to the Pre-Arbitration response.

In the Accept liability or initiate Arbitration section, in the Arbitration Amount text field enter USD 400.00.

In the Comments textbox, you can optionally enter some relevant comments.

Click Submit.

You have reached the end of this video. You have learned:

• How a pre-arbitration is filed and how the pre-arbitration response is handled in Visa fraud and consumer dispute Cases.