Chargeback Management

Visa Resolve Online: How to Slash Chargeback Rates

February 25, 2022 Comments Off on Visa Resolve Online: How to Slash Chargeback Rates
VISA Resolve Online

Recent years have seen a worrying spike in the number of chargebacks filed by customers. That’s something Visa Resolve Online (VROL) hopes to stop.

The surge has prompted the major card networks, such as Visa, to take steps to try to mitigate the problem by streamlining the dispute process using new or updated systems and procedures.

What is Visa Resolve Online (VROL)

One of these technologies is Visa Resolve Online, which all issuing and acquiring banks must now use when dealing with –

  • Retrieval requests;
  • Documentation regarding chargebacks or representment disputes; and
  • Pre-arbitration and pre-compliance cases, and any subsequent proceedings

VROL is not a new system, but it was significantly updated with the rollout of the Visa Dispute Resolution Initiative in 2018, and it now aims to settle disputes within 31 days rather than the previous 3 months.

How VROL Works

When a cardholder queries a transaction VROL is immediately triggered to request further information. This may include receipts, customer authorizations, shipping, and delivery details.

On receiving this documentation the VROL system will allocate the case to one of two work paths – either Allocation or Collaboration.

In the first case, the system will make a real-time decision on liability, and it will then be up to the liable party to either dispute or accept that decision.

Preventing Chargebacks

In Collaboration cases, however, Visa will require the merchant to submit further information with the aim of avoiding a chargeback.

At this stage, VROL is very similar to the current representment process, but with the advantage that the platform is open to merchants and issuing/acquiring banks alike. This means that the required exchange of information can happen much more rapidly and many potential chargebacks can be settled even before they are filed.

Where VROL Falls Short

Unfortunately, it’s true that VROL alone can do little to tackle the so-called “friendly fraud” that accounts for a large and increasing proportion of chargebacks.

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But it can nevertheless be a useful addition to your defenses as part of a comprehensive plan for avoiding or contesting chargebacks.

Such a plan should come into operation even before VROL gets involved and means your business having a clear strategy for collecting and storing all relevant data, making sure your staff are properly trained, and understand clearly how chargebacks can be contested.

Integrating VROL into such a strategy. is no simple task, particularly for small businesses.

So why not start by contacting our expert team here.

We’ll be glad to help.