Visa Claims Resolution (VCR)

Visa Claims Resolution (VCR) is Visa's modernized dispute resolution framework launched in 2018 to streamline chargeback handling between cardholders, merchants, and issuing banks. VCR replaced Visa's previous chargeback process with an automated system that reduces resolution time and complexity.

VCR simplified dispute reason codes from over 20 categories down to four main types: fraud, authorization issues, processing errors, and consumer disputes. This makes it easier to identify and respond to disputes appropriately.

The framework introduced faster resolution timeframes with stricter deadlines, reducing maximum resolution time from 120+ days to approximately 31 days for most disputes. Automated workflows enforce these timeframes and minimize manual processing delays.

The Dispute Resolution Network (DRN) enables pre-dispute resolution, allowing merchants to resolve certain disputes before they become formal chargebacks. This helps merchants avoid chargeback fees and negative impacts on their chargeback ratios.

VCR also requires more detailed transaction data and compelling evidence upfront, helping issuers make better initial decisions and reducing invalid disputes. The framework introduced allocation workflows for liability assignment and collaboration processes for complex cases, improving transparency throughout the dispute lifecycle.