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    Visa Chargeback (VCR) Changes Notification as for April 13, 2018

    Please be advised that starting April 13, 2018, Visa has implemented several changes to the chargeback rules and regulations (VCR). The full list of changes will become available in the “Visa Core Rules and

    Visa Product and Service Rules” documentation available from the Visa, however in order to better prepare you for the changes we have prepared a summary for your information, below.

    • Terminology Changes. Beginning on the date listed above, Visa chargebacks are referred to as “disputes”, while representments (responses to chargebacks) are referred to as “dispute responses”. These changes in terminology will be reflected on the chargeback notification letters which are sent to you by mail and fax.
    • Dispute Groups. Visa has created two distinct categories of chargebacks, based on the nature of the dispute, and has implemented different dispute response processes for the two groups. Disputes that are generated due to fraud and authorization reasons are now called “allocation” disputes, while those that are generated as a result of processing errors and consumer disputes are referred to as “collaboration” disputes.

    The new disputes, as well as the dispute groups they fall under, are shown below:

    Allocation Disputes

    Fraud Related Disputes

    VCR Category and Condition Code

    Condition Code Explanation

    Previous Chargeback Reason Code

    10.1

    EMV Liability Shift Counterfeit Fraud

    62

    10.2

    EMV Liability Shift Non-Counterfeit Fraud

    81

    10.3

    Other Fraud – Card Present Environment

    81

    10.4

    Other Fraud – Card Absent Environment

    83

    10.5

    Visa Fraud Monitoring Program

    93

    Authorization Related Disputes

    VCR Category and Condition Code

    Condition Code Explanation

    Previous Chargeback Reason Code

    11.1

    Card Recovery

    70

    11.2

    Declined Authorization

    71

    11.3

    No Authorization

    73

    Collaboration Disputes

    Processing Errors

    VCR Category and Condition Code

    Condition Code Explanation

    Previous Chargeback Reason Code

    12.1

    Late Presentment

    74

    12.2

    Incorrect Transaction Code

    76

    12.3

    Incorrect Currency

    76

    12.4

    Incorrect Account Number

    80

    12.5

    Incorrect Amount

    80

    12.6.1

    Duplicate Processing

    82

    12.6.2

    Paid by Other Means

    86

    12.7

    Invalid Data

    72

    Consumer Related Disputes

    VCR Category and Condition Code

    Condition Code Explanation

    Previous Chargeback Reason Code

    13.1

    Merchandise/Service Not Received

    30

    13.2

    Cancelled Recurring

    41

    13.3

    Not as Described or Defective Merchandise/Services

    53

    13.4

    Counterfeit Merchandise

    53

    13.5

    Misrepresentation

    53

    13.6

    Credit Not Processed

    85

    13.7

    Cancelled Merchandise/Services

    85

    13.8

    Original Credit Transaction Not Accepted

    85

    13.9

    Non-Receipt of Cash or Load Transaction Value

    90

    • Response to Allocation Disputes. Beginning April 13, any merchant responses to an allocation dispute require compelling evidence in order to demonstrate that a transaction has been authorized (examples: proof of product delivery to and AVS matched address, proof of manual credit card imprint, proof that cardholder is not disputing the transaction, etc.), and also require the Paya to initiate a pre-arbitration on your behalf in order to respond and request a review of the evidence. Simple representments to allocation disputes are not possible. Once a pre-arbitration is filled with the issuing bank, that party can accept the evidence or deny it, at which point Paya can file a request for arbitration on your behalf. Please be advised that additional fees would be assessed if an arbitration results in a decision in favor of the issuing bank/cardholder ($500.00 per dispute).
    • Reduced Timeframe. Visa has reduced the allowed time for a dispute response to be filed, from 45 days to 30 days. As always, we continue to recommend that you respond to a dispute notification letter within 10 days, in order to allow our chargeback department time to process the response and submit it on your behalf.

    Chargeback notifications will continue to be mailed or faxed, however the letters will be titled “allocation debit advice”, and “collaboration debit advice”. Any questions can be directed to the chargeback department at (Ph) 1-866-637-5467.

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