All Visa disputes are processed through Visa Claims Resolution (VCR), which has two workflow categories - Allocation and Collaboration. The dispute reason code reflects the Category Number and the dispute reason code. A Visa reason code will appear, for example, as 10.1, with the category number at the beginning and the code appearing after the period.
To view the workflow type, log in to Merchant Manager, select Reports, Dispute History, and select any dispute case to view the Dispute Detail. View the Dispute Data section and Workflow. To view a specific workflow, select the filter icon and workflow, then select the appropriate option and click Add Filter.
The below table provides the category name, workflow, and condition/response codes.
| Category: Fraud Category No: 10 Workflow: Allocation Reason Codes: | Category: Authorization Category No: 11 Workflow: Allocation Reason Codes: | Category: Processing Errors Category No: 12 Workflow: Collaboration Reason Codes: | Category: Consumer Disputes Category No: 13 Workflow: Collaboration Reason Codes: |
|---|---|---|---|
| 10.1 – EMV Liability Shift Counterfeit Fraud | 11.1 – Card Recovery Bulletin | 12.1 – Late Presentment | 13.1 – Merchandise/Services Not Received |
| 10.2 – EMV Liability Shift Non-Counterfeit Fraud | 11.2 – Declined Authorization | 12.2 – Incorrect Transaction Code | 13.2 – Cancelled Recurring |
| 10.3 – Other Fraud – Card-Present Environment | 11.3 – No Authorization | 12.3 – Incorrect Currency | 13.3 – Not As Described or Defective Merchandise/Services |
| 10.4 – Other Fraud – Card Absent Environment | 12.4 – Incorrect Account Number | 13.4 – Counterfeit Merchandise | |
| 10.5 – Visa Fraud Monitoring Program | 12.5 – Incorrect Amount | 13.5 – Misrepresentation | |
| 12.6.1 - Duplicate Processing 12.6.2 - Paid by Other Means | 13.6 – Credit Not Processed | ||
| 13.7 – Cancelled Merchandise/Services | |||
| 13.8 – Original Credit Transaction Not Accepted | |||
| 13.9 – Non-Receipt of Cash or Load Transaction Value |
Collaboration Workflow
The Collaboration workflow, illustrated in figure 1, is used for Processing Errors and Consumer Disputes. Opt to respond within 16 days to Accept or Respond to this type of dispute from the incoming dispute date. We require the same response time for all card brand disputes, irrespective of workflow type. You will be automatically debited for the disputed amount on receipt of this dispute type. If you choose to respond, the amount of the dispute will be adjusted to your bank account. If you choose not to respond, we will automatically accept the dispute with Visa on your behalf and expire the time frame on the dispute. The dispute status will be updated to “time frame expired (E).” Automatically accepting will ensure that we do not incur additional fees for non-response.
Selecting to respond and initiating a dispute response will require the issuing bank to respond to the dispute within thirty days of the response date. If the issuing bank rejects your response and creates a pre-arbitration, the dispute status of the current case will be updated to “issuer rejected (D).” A new dispute case will be created to track the new pre-arbitration. You will be automatically debited for the disputed amount on receipt of this dispute type. If you choose to respond, the amount of the dispute will not be adjusted to your bank account until a final decision is made. You will have the option to Accept or initiate a Challenge response. Ten days from the incoming dispute date, we will automatically accept the dispute with Visa on your behalf and expire the time frame on the dispute. The dispute status will be updated to “time frame expired (E).” Automatically accepting will ensure that we do not incur additional fees for non-response.
Challenging the dispute will give the issuer ten calendar days to respond to the pre-arbitration response. The pre-arbitration dispute status will be updated to “arbitration (Z),” and an arbitration dispute case will be created. Visa will make a final ruling on the dispute. Once the final decision is made, monies will be adjusted to the appropriate party.
Figure 1: Collaboration Workflow
Allocation Workflow
In the Allocation workflow (see figure 2) used for Fraud and Authorization disputes, Visa performs automated checks to validate the dispute (including whether a credit has already been issued). Visa will only assign liability to a merchant if the dispute passes those checks. You will be automatically debited for the disputed amount on receipt of this dispute type. As a result of Visa adjudicating this type of dispute, you will be initiating a pre-arbitration if you choose to respond to this dispute. We will require you to decide to Accept or Respond to this type of dispute within 16 days from the incoming dispute date. Unlike the collaboration disputes, no monies are returned to you if you decide to initiate a pre-arbitration. If you win the pre-arbitration (because the issuer or Visa accepts), monies will be returned. If you choose not to respond, we will automatically accept the dispute with Visa on your behalf and expire the time frame on the dispute. The dispute status will be updated to “time frame expired (E).” Automatically accepting will ensure that we do not incur additional fees for non-response.
Selecting to respond and initiating a pre-arbitration will require the issuing bank to respond to the dispute within thirty days of the pre-arbitration. If the issuing bank rejects your response, the dispute status will be updated to “issuer challenged (P).” You will have the option to Withdraw or initiate an Arbitration response seven days from when the first-time dispute status is updated. The options will be removed after seven days, and the dispute status will be updated to “lost (L).” If you choose to create an arbitration response, Visa will make a final ruling on the dispute. Once the final decision is made, monies will be adjusted to the appropriate party.
Figure 2: Allocation Workflow
