Disputes and Chargebacks: Comparing and Contrasting the Networks’ Approaches

The changes to card networks’ dispute programs center around technology, collaboration, and rules.

Boston, July 3, 2019 – Consumers’ right to dispute credit and debit card transactions is a fundamental reason why payment cards have reached the level of global ubiquity they enjoy today. But the processes that enable chargebacks are labor-intensive and vulnerable to stakeholders who try to game the system. Aiming to reduce chargeback abuse, decrease the operational burden, and meet global merchants’ desire for more standardized payment operations, Visa and Mastercard are making significant changes to their dispute programs.

This report examines both global and U.S. domestic payment networks’ current approaches and future evolution of the dispute and chargeback framework, and it shares some early metrics around the benefits that these changes are producing for the payments ecosystem. It is based on Aite Group interviews of executives from Visa and Mastercard as well as executives from leading U.S. debit networks and gateway processors from February to April 2019. 

This 28-page Impact Report contains three figures and 11 tables. Clients of Aite Group’s Fraud & AML service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions Ethoca, FIS, First Data, Fiserv, Mastercard, Nyce, Pulse, Star, Verifi, and Visa.

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