For card issuers and acquirers, managing cardholder disputes has a direct impact on merchant and customer satisfaction and retention. Unfortunately, dispute and chargeback processes can be inefficient and time consuming compromising merchant allegiance and customer loyalty.
Despite the available technology and various systems used by acquirers and issuers, the fact remains that dispute processing is still mostly labor intensive and manual. Many of the applications that support dispute processing are limited in their scope and coverage due to:
- Manual processes used; e.g., for collection of data from various sources, management of data using spreadsheets, etc.
- Printing and scanning of electronic inputs before they get stored and indexed; e.g., email, fax, mail et al.
- Absence of a stringent quality control process that focuses on target-setting and measuring key metrics like turn-around time, accuracy, rework etc. to improve productivity.
- Inconsistency in prioritizing cases through workflows, rules and quality controls making it difficult to facilitate automated handling of low value transactions or differentiated handling of exceptional cases.
- Difficulty in getting an integrated view of a transaction from RFI to chargeback to pre-arbitration for quick context setting, reference and processing.
- Improper work segregation and a lack of a training for overall team.
- Inability to cope with updated dispute management process, rules and system [like VCR or MDR] from Visa or Mastercard.