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1. Operating Regulations
Improving Dispute
Resolution for You
How Visa is Making the Process Better for Merchants
in Card-Present Transactions
In recent years, Visa® has made many significant changes in chargeback rules. We’re always
looking to better align, simplify, and shorten the dispute-resolution process while also keeping
pace with the needs of the payment industry. As changes are made, sharing them with you is
part of our commitment to merchants as we help your business run smarter and more efficiently
every year.
Upcoming Changes to Chargeback and Retrieval Requests
Visa is continuing to refine its chargeback process with an eye toward reducing required
documentation and promoting faster dispute resolution for merchants, acquirers and issuers.
Below is a quick review of what’s ahead in April 2013 (Effective globally, excluding Visa Europe).
The Transaction Receipt Requirement is Eliminated
Effective for chargebacks processed on or after 20 April 2013, issuers will no longer be
required to request a copy of the transaction receipt prior to initiating a chargeback for the
following:
Reason Code 75
Transaction Not Recognized
Reason Code 81
Fraud – Card-Present Environment
Reason Code 83
Fraud – Card-Absent Environment
For merchants, it’s important to remember that this is only a condition of a chargeback
change. As part of the dispute process, issuers may still request a copy of the transaction
receipt if needed in order to respond to a cardholder escalation request or for legal reasons
— and you may still receive a request for copy. Merchants must continue to respond and
properly fulfill requests for copy in a timely manner to avoid further dispute or compliance
action.
The Invalid Chargeback Requirement is Revised
Effective for chargebacks processed on or after 20 April 2013, an issuer’s chargeback will
be considered invalid for the following reason codes if there is evidence that the card was
electronically read:
Reason Code 75
Transaction Not Recognized
Reason Code 81
Fraud – Card-Present Environment
Reason Code 83
Fraud – Card-Absent Environment
An issuer may only use these reason codes to pursue chargebacks for key-entered
or unattended transactions. Merchants will no longer be required to provide a signed
transaction receipt except when CVV2 was obtained instead of imprint for U.S. domestic
transactions. Proof that a card was manually imprinted or electronically read will provide
sufficient evidence to remedy an issuer’s chargeback.
Fraud chargebacks will
not be permitted by Visa
on transactions that
have been electronically
read (i.e., swiped,
dipped in, or waved past
a card reader).

2. Process Effective April 2013
No
chargeback
rights
Cardholder
disputes
transaction
Was card
electronically
read?
Existing
chargeback
process
Represent with imprint
or
Signature with CVV2*
*Signature with CVV2 applies to U.S. domestic only.
What it Means for Merchants
Rule changes are intended to speed up the dispute resolution process without compromising the integrity of the chargeback process.
For merchants, the retrieval request elimination and invalid chargeback requirement will mean:
– Streamlined chargeback and documentation requirements
– Simplified dispute resolution process (fraud chargebacks will not be permitted on electronically read transactions)
– Reduced back-office handling and related fraud management costs
Merchants must continue to:
– Respond to retrieval requests in a timely manner to avoid compliance action and associated fees
– Capture the cardholder’s signature at the point of sale for transactions not eligible for Visa Easy Payment Service
– Follow fraud prevention steps during transaction processing
These changes will simplify the dispute resolution process, minimize operational costs, and reduce copy requests received by
merchants. And it will also help create a degree of flexibility intended to improve chargeback-processing efficiencies. Merchants
should NOT receive fraud chargebacks if card is electronically read and correct acceptance procedures are followed at the point of
sale.
Monitoring Chargebacks
To help ensure that acquirers and issuers are not negatively impacted by these rules changes, Visa will implement a monitoring
and compliance program to make certain that fraud rules are properly followed and to monitor unusual spikes in dispute activity. In
addition, merchant point-of-sale procedures will be monitored to ensure that signature requirements are being followed as set forth
in the Visa International Operating Regulations.
Visa offers a number of risk and chargeback management materials as part of its merchant education
program. To download these guides visit www.visa.com/merchants.
KEY-ENTERED
CHARGEBACKS
ACCEPTANCE
Merchant Card
Acceptance Process
for Magnetic-Stripe
Failures at the Point
of Sale (U.S. domestic
only) U.S. merchants
in the face-to-face
sales environment may
include CVV2 in the
authorization request for U.S. domestic
key-entered transactions in lieu of taking a
manual card imprint.
Chargeback
Management
Guidelines for
Visa Merchants
covers chargeback
requirements and best
practices for processing
transactions that are
charged back to the
merchant.
Card Acceptance
Guidelines for Visa
Merchants provides
merchants and their
sales staff with accurate,
up-to-date information
and best practices
for processing Visa
transactions.
For more information, contact your acquiring bank, processor or Visa representative today.
© 2012 Visa. All Rights Reserved. VPC 05.07.12