A Merchant’s Guide to Visa Resolve Online

As a former e-commerce, I’ve had to prepare myself for the eventual reality of potential Visa chargebacks. Thus, I learned about the Visa Resolve Online platform.

This guide will teach you about the platform, how to use it (as a retailer), what information you’ll need to submit, and tips.

Let’s dive in.

Key Takeaways

• Over 80% of chargeback cases are resolved through VROL.
• VROL is a platform for managing Visa disputes.
• Merchants will use it to submit evidence for disputes.
• VCR is Visa's initiative; VROL is the platform.

What is Visa Resolve Online & How Does it Work?

Available for use in the following areas as of 2024:

Notes:

• CMEA = Central Europe, Middle East, and Africa
• LAC = Latin America and the Caribbean

Visa Resolve Online (VROL) is a web-based app introduced by Visa to streamline dispute resolution between vendors and issuing banks. It creates a centralized system for managing chargebacks and disputes more efficiently.

It’s also a means to prevent invalid disputes from wasting merchants’ and banks’ time. For instance, if a dispute doesn’t meet Visa’s dispute criteria, the process won’t proceed.

I’ll go more in-depth with what it does in a second, but let’s see a quick summary:

• Retrieve transaction information
• Get financial information related to transactions
• Electronically transfer documents and information to banks for disputes
• Submit pre-filings
• Report fraud
• Manage Exception File Listings
• Respond to retrieval requests
• File, appeal, or withdraw a compliance case or arbitrate a chargeback

This is where the Visa Merchant Purchase Inquiry (VMPI) comes in.

It’s a process through VROL where a cardholder's bank requests additional information from the merchant about a disputed transaction.

Screenshot from Fiserv

It allows the seller to provide clarifying details or issue a refund to potentially prevent a chargeback.

Allocation vs. Collaboration: Dispute Paths Will Vary

Allocation:

• Trigger: When a dispute involves suspected fraud.
• VROL's Role: Analyzes the details provided by the shopper and merchant. It uses Visa's data and rules to determine who is responsible for the dispute.
• Option to Appeal: If the party deemed liable disagrees, they can submit additional evidence through VROL to try and overturn the decision.

Think of it like this:

Allocation is like a rapid investigation. Quickly determining fault based on the available information.

Collaboration:

1. Trigger: Processing errors or other consumer complaints (like non-delivery of goods or services not as described).
2. VROL's Role: Provides a platform for sharing information and documentation
3. Focus on Evidence: Visa may request the merchant to provide additional evidence to clarify the situation and address the shopper’s concerns.
4. Preventing Chargebacks: If evidence is compelling enough, the dispute might be resolved without escalating to a chargeback.
5. Escalation to Chargeback: If the dispute can't be resolved through collaboration, it may escalate to a chargeback, where Visa will make a final liability decision.

Collaboration is like a negotiation table. Encouraging both sides to share information and work toward an agreeable solution.

You’ll Share This Transaction Information

Here’s all of the data that you’d need to share through VROL:

1. Chargeback Documentation:

• Examples:some text
  • Reason codes
  • Supporting evidence
• Why it's needed: Outlines the reason for the chargeback and provides initial evidence to support the claim.

2. Basic Transaction Details:

• Examples:some text
  • Date
  • Time
  • Amount
  • Merchant name and descriptor
• Why it's needed: Verify the specifics of the disputed transaction.

3. Cardholder Statements: Provides a record of the transaction from the buyer's perspective, confirming their version of events and helping track the disputed charge.

4. Transaction Receipts: The proof of purchase, which helps determine the legitimacy of the transaction.

5. Communication Records:

• Examples:some text
  • Emails
  • Chat logs
  • Call records
• Why it's needed: Provides context and may reveal misunderstandings or miscommunications.

6. Shipping & Delivery Information:

• Examples:some text
  • Tracking numbers
  • Receipts
  • Confirmations
• Why it's needed: Proves goods were shipped and potentially received.

7. Proof of Services Rendered:

• Examples:some text
  • Work orders
  • Agreements
  • Certificates
• Why it's needed: Verifies that services were rendered as agreed upon.

8. Consumer Dispute Information:

• Examples:some text
  • Refunds
  • Cancellations
  • Customer service records
• Why it's needed: Additional context and may offer proof of actions taken to address the issue, potentially leading to a quicker resolution.

9. Evidence for Representment: This additional evidence (such as communication records or proof of service) is reviewed to determine if the chargeback should be reversed.

10. Pre-Arbitration Documentation: If the dispute escalates, this documentation, including any new evidence or arguments, ensures a fair and thorough review.

11. Fraud Reports:

• Examples:some text
  • IP addresses
  • Suspicious activity logs
  • Results from fraud flagging software
• Why it's needed: Helps identify fraudulent activity, protecting all parties involved.

How to Use Visa Resolve Online (As a Merchant)

Here’s how you’ll set up Visa Resolve Online.

1. Reach Out to Your Acquirer

Contact your acquirer (the bank or payment processor that handles your Visa transactions). They'll guide you through the setup process, providing necessary information and support.

Ensure your systems are compatible with VROL. This might involve software and hardware updates or verifying your internet connection's security and reliability.

Your acquirer can specify the exact requirements.

2. Enroll

Fill out the VROL enrollment form provided by Visa.

You'll need information like:

• Merchant ID
• Business name
• Contact details

Your acquirer can assist you with this.

3. Integrate, Test, & Train Your Team

Work with your IT team or a third-party vendor to seamlessly integrate VROL into your existing systems. Thoroughly test the integration to ensure everything works as expected.

From there, take advantage of training resources offered by Visa and your acquirer.

This could include webinars, user guides, and support to help you and your team navigate the platform.

4. Managing Disputes

Once everything’s set up, you will manage your disputes:

1. Monitor Disputes: Regularly log into VROL to check for new disputes or updates on existing ones.

2. Submit Compelling Evidence: Send evidence that supports your case. We talked about this evidence.

3. Collaborate: Use this opportunity to clarify any misunderstandings, provide additional information, or negotiate a resolution.

4. Track Progress: Track updates, view submitted evidence, and stay informed about the progress of each case.

Common Challenges & How to Overcome Them

VROL isn’t perfect (nothing is). But let’s see where it falls short and how that’ll affect you:

1. Limited Friendly Fraud Detection: VROL primarily relies on transactional data and documentation.

It can identify some instances of friendly fraud. However, it’s not always effective at detecting cases where the shopper is deliberately disputing legitimate transactions (chargeback fraud).

This is due to the subjective nature of friendly fraud claims and the lack of concrete evidence to prove otherwise.

You’ll find this issue on all platforms (e.g., Mastercom), though. Friendly fraud is one of those situations that’s difficult to fight sometimes.

Though, merchants win 43.82% of friendly fraud cases, which is above the industry average win rate of 30%.

2. Technical Issues and Learning Curve: Some sellers may face technical difficulties or a learning curve when adapting to VROL's interface and processes.

This isn’t much of an issue, though.

3. Visa-Specific Platform: Limited to Visa transactions, meaning it can't address disputes related to other card networks (like Mastercard).

This requires vendors to use multiple platforms for different card types, potentially leading to confusion.

Tips We Recommend to Overcoming the Challenges

Consider these tips to overcome many of the challenges Visa Resolve Online presents:

1. Proactive Fraud Prevention: Since VROL has limitations in detecting friendly fraud, implement proactive measures to minimize its occurrence. 

This could involve:

• Clear and detailed product descriptions
• Robust customer service to address concerns quickly
• Order confirmation emails with detailed transaction information
• Transparent refund and return policies
• Address Verification Service (AVS) and Card Verification Value (CVV) checks during transactions

2. Training and Support

Invest in training and support resources to help your team become proficient in using VROL. This will ensure they understand its features.

3. Data Analytics: Utilize data analytics to identify patterns and trends in disputes. This can help you spot potential friendly fraud cases earlier and take appropriate action.

4. Dispute Prevention Tools: Consider using additional tools, such as Verifi CDRN or Ethoca Alerts, to deal with disputes quickly so they don’t result in chargebacks.

We have partnered and bundled Visa Rapid Dispute Resolution (RDR), CDRN, and Ethoca alerts to make managing (and handling) alerts easier. See how here.

By addressing these challenges, you can maximize the benefits of VROL while minimizing its limitations.

Our Tips to Help You Maximize This Tool

To maximize VROL, prioritize chargeback prevention, record-keeping, and exceptional customer service. Otherwise, there’s not much you can do.

Integration with Other Systems

Visa also offers the following optional services for VROL that include:

• 1. Order Insight (formerly Visa Merchant Purchase Inquiry): It allows businesses to receive and respond to transaction inquiries from cardholders' banks directly within the VROL platform.
• 2. Order Insight Digital: This is an extension of Order Insight, specifically designed for digital goods and services.
• 3. Rapid Dispute Resolution (RDR): When a consumer initiates a dispute, VROL automatically checks if the transaction is eligible for RDR.
• 4. Visa Risk-based Automated Dispute Service (VRAD): Analyzes transaction data and applies risk scores to identify disputes that are likely to be invalid or fraudulent. Think of it as a fraud scoring tool.

The prices to use these tools will vary on factors like your business type, size, and sales volume.

Visa Claims Resolution vs. Visa Resolve Online

In short:

• Visa Claims Resolution (VCR): The overall initiative to streamline and improve dispute resolution.
• Visa Resolve Online (VROL): The online platform where disputes are managed.

Comparing VCR to VROL is somewhat like comparing apples to oranges since the former is an initiative and the latter is a platform.

However…

You may want to know the initiative, regardless. And I’m here to give you that information.

First Off, What is the Visa Claims Resolution Initiative?

Effectiveness:

• Fewer than 20% of sellers had a decline in Visa chargebacks.
• Disputes often resolved in a month.
• Sellers in Chase Merchant Services saw a 7 – 10% reduction in dispute volume [1].

The Visa Claims Resolution initiative, launched in 2018, overhauled Visa's dispute process. It introduced changes to rules and processes and removed 22 legacy reason codes and timelines.

Objectives of VCR:

• Faster Resolution: Previously, the process could drag on for months, but VCR sought to make this this to 31 days.
• Reduced Invalid Disputes: Introduced mechanisms to weed out invalid or illegitimate disputes earlier in the process.
• Simplified Processes: Streamlined the dispute process, reducing complexity.
• Enhanced Collaboration: It encouraged communication and information sharing through the upgraded Visa Resolve Online (VROL) platform.

And here’s how it changes the dispute landscape:

1. VCR introduced four main dispute categories:

• Fraud
• Authorization
• Processing errors
• Consumer disputes

Replacing the older, more complex reason codes.

Screenshot from Visa (PDF link).

For instance, they replaced reason code 30 with 13.1 (Merchandise / Service Not Received).

2. It established clearer timelines for each step of the dispute process. Promoting faster resolution and reducing uncertainty.

Screenshot from Visa.

3. Enhanced VROL. Making it the hub for managing disputes and encouraging collaboration through features like Order Insight and real-time liability decisions.

Wrapping Up

Visa Resolve Online is just one tool in your arsenal for managing disputes. Combining it with other strategies and resources can help protect yourself from chargebacks.

As mentioned, we combine alert providers (RDR, Ethoca, and CDRN) to make detecting and dealing with disputes much more manageable. See how we can help reduce chargebacks.

Source

• 1: JP Morgan: Visa Claims Resolution (PDF link)