New Dispute Resolution Process


Visa and Mastercard are streamlining their dispute processes. The new dispute resolution process will benefit issuers, acquirers, merchants and cardholders alike, by proactively minimizing invalid disputes and responses, applying automated liability assignment where possible and providing a more efficient process with simplified rules, user-guided workflows and reduced resolution timeframes.


What’s Changing?


The new process seeks to simplify exception processing by migrating from a “dispute resolution” model to a “liability assignment” model, in order to simplify the processing of disputed transactions.


The following is an outline of the specific changes being implemented by Visa and Mastercard:

  • Payment networks to screen and eliminate invalid disputes
  • Consolidation of dispute reason codes to simplify process
  • Shortened resolution timeframes
  • New workflow / financial cycles such as “Allocation” and “Collaboration” for Visa and the removal of second chargeback for Mastercard
  • Chargeback rule changes


Reason Code Changes


Both Visa and Mastercard are consolidating their current reason codes into four (4) categories:


  1. Fraud
  2. Authorization
  3. Processing Error
  4. Consumer Dispute


For each of the four (4) categories, sub-reasons will be displayed to the merchant to ensure they are fully aware of the reason for the dispute.


Dispute Process Workflows


The VCR process reduces timelines, touchpoints, and processes involved in getting to a dispute resolution. Fraud and Authorization disputes will be processed through an automated workflow called “Allocation”. Processing Errors and Consumer Disputes will be processed using a “Collaboration” workflow.




As the payment networks are reducing the dispute resolution timeframe and cycle, merchant response times are being aligned to 10 calendar days in order to allow for timely investigation and review of cases, and to help prevent losses due to missed timeframes.


Frequently Asked Questions


1. What is changing in the dispute process?

Visa and Mastercard are streamlining their respective dispute processes – Visa Claims Resolution (VCR) and Mastercard Dispute Resolution Initiative (DRI) – to proactively eliminate invalid disputes, apply automated liability where possible, simplify rules and reduce resolution timeframes that will benefit all parties.


2. When will these changes take effect?

Changes to dispute rules and workflows are scheduled in phases and will be implemented for new disputes, commencing April 2018. Merchant response times have been aligned to 10 calendar days effective January 2018.


3. Do we have to follow these new rules and processes?

Yes, these are mandated changes.


4. How will the new Visa workflow affect me?

The current Visa chargeback process is being split into two (2) dispute workflows to determine liability and financial movements. For fraud and authorization-related disputes, the payment networks will assign liability and defense rights may be limited. Where defense rights exist, we will no longer be able to “Represent” the case, but will be required to file a pre-arbitration to the issuer and there will be no movement of funds until the case is accepted. For processing error and consumer disputes, the workflow will mirror the current process. Where defense rights exist, the acquirer will still be able to “Represent” the case to the issuer and, like today, there will be immediate movement of funds.

5. What are the new response timeframes and how will it affect us?

We are aligning overall response times to 10 calendar days to allow timely investigation and review of cases and prevent losses due to missed timeframes.


6. Will the dispute reason codes and requirements stay the same?

The dispute reason codes will change and the requirements for each dispute reason have been tightened to ensure that only valid disputes and dispute responses are submitted. Responses will only be allowed for the following reasons:

  • Compelling Evidence for Fraud/Consumer Disputes
  • Valid Imprint for Fraud (applicable for key-entered transaction where imprint could have been obtained separately)
  • Credit Processed (before the dispute us received, do not process refund after dispute)
  • Invalid Data (applicable for situations where correct data or information can be provided)

If the requirements to remedy the dispute are not met, defense rights will not be available and merchant response cannot be pursued.

7. Will there be new processes for Retrieval Requests, Compliance and Good Faiths?

No. There will be no changes to these processes.


8. Given the reduced timeframe, how will we receive notifications and send responses in a timely manner?

To enable expedited dispute responses, Global Payments offers the Smart Dispute Manager (SDM) Merchant Portal, which is part of our BusinessView product. This application allows the merchants to view, monitor and respond to dispute cases and upload supporting documents in a timely manner.


To manage dispute cases, simply login to BusinessView (, choose “Applications” from the top menu bar and select “SDM”. If you do not have access, please contact your Global Payments account representative.


9. How do I get access?

Please contact your Global Payments account representative, in order to get access to Smart Dispute Manager (SDM) merchant portal.


10. Will there be new chargeback fees imposed?

No. At this time, there are no changes to their existing chargeback fees.

11. What if I prefer not to participate in the new chargeback rules and handling system?

We understand your concern; however, the new rules are mandatory by the payment networks and are applicable to all merchants and acquirers. In order to continue to accept card payments, merchants and acquirers must adhere to the new rules.


New Visa and Mastercard Dispute Reason Codes




Visa Dispute Reason Code

Mastercard Dispute Reason Code

Current Reason Code

VCR Reason Code


62 – Counterfeit Fraud

101 – EMV Liability Shift Counterfeit Fraud

4871 – Chip/PIN Liability Shift

81 – Fraud – Card Present

102 – EMV Liability Shift Non-Counterfeit Fraud

4870 – Chip Liability Shift

81 – Fraud – Card Present

103 – Other Fraud – Card Present Environment

4837 – No Cardholder Authorization

83 – Fraud – Card Absent

104 – Other Fraud – Card Absent Environment

4837 – No Cardholder Authorization

4863 – Cardholder Does Not Recognize (Potential Fraud)

93 – Merchant Fraud Performance

105 – Visa Fraud Monitoring Program

4849 – Questionable Merchant Activity


70 – Card Recovery Bulletin

111 – Card Recovery Bulletin

4808 – Authorization-related Chargeback

71 – Declined Authorization

112 – Decline Authorization

4808 – Authorization-related Chargeback

72 – No Authorization

113 – No Authorization

4808 – Authorization-related Chargeback

73 – Expired Card

113 – No Authorization

4808 – Authorization-related Chargeback

78 – Service Code Violation

113 – No Authorization

4808 – Authorization-related Chargeback

Processing Error

74 – Late Presentment

121 – Late Presentment

4834 – Point of Interaction Error

76 – Incorrect Currency or Transaction Code

122 – Incorrect Transaction Code

123 – Incorrect Currency

4834 – Point of Interaction Error

77 – Non-Matching Account Number

127 – Invalid Data

4834 – Point of Interaction Error

80 – Incorrect Transaction Amount or Number

124 – Incorrect Account Number

125 – Incorrect Amount

4834 – Point of Interaction Error

82 – Duplicate Processing

126.1 – Duplicate Processing / Paid by Other Means

4834 – Point of Interaction Error

86 – Paid by Other Means

126.2 – Duplicate Processing / Paid by Other Means

4834 – Processing Error

Consumer Dispute

30 – Services / Merchandise not Provided

131 – Merchandise / Services not Received

4853 – Consumer Dispute

41 – Cancelled Recurring Transaction

132 – Cancelled Recurring

4853 – Consumer Dispute

53 – Not as Described / Defective Merchandise

133 – Not as Described / Defective Merchandise / Services

134 – Counterfeit Merchandise

135 – Misrepresentation

4853 – Consumer Dispute

85 – Credit not Processed

136 – Credit not Processed

137 – Cancelled Merchandise / Services

138 – Original Credit Transaction not Accepted

4853 – Consumer Dispute

90 – Non-Receipt of Cash or Load Transaction Value

139 – Non-Receipt of Cash or Load Transaction Value

4853 – Consumer Dispute