Visa: Efficient Dispute Resolution Is Key For E-commerce Growth

April 10, 2024

In the last few years, online transactions have been growing at a rapid pace, giving customers more variety and easy access to an ever growing number of products and services than ever before. However, this has also led to an increase in disputed transactions whether by fraud, returns, or even processing and authorization issues at checkout.

This leads to the natural conclusion that as online businesses grow, so does the need to improve the systems related to disputed transactions, including chargebacks, to meet and exceed customers’ expectations when it comes to the “ease and low friction” of their online checkout experience.

In 2023, a report by Payments Cards & Mobile revealed that by 2026, disputed transactions are set to cost both merchants and banks based in Europe a whopping $2 billion, while Visa revealed that between 2019 and 2022, they have seen a 30% rise in disputed transactions.

According to Nathan Cushnie, Director of Post-Purchase Solutions Europe at Visa, resolving disputed online transactions can be trickier than at a physical point of sale, especially when it comes to cross-border commerce.

This is especially true in cross-border e-commerce, where identical quality of data may not always be available from all parties in a transaction. Furthermore, as account-to-account and instant payments grow rapidly over the next five years, dispute resolution looks set to become even more challenging.

The Positive

According to a study from McKinsey, solving these online disputes quickly and efficiently boosts business by encouraging loyalty in customers towards banks and merchants.

Visa’s Solution

In order to help banks and customers, Visa introduced its very own Dispute Management Service, VDSMS.

This solution is designed to optimize the recovery of funds in the dispute process, cut the cost of disputed transactions for banks, and free up resources for banks to focus on enhancing customer relationships and improving the resolution experience for its customers.


This new service will give banks access to personnel with more than 500 years of combined dispute resolution experience, in addition to giving them access to Visa’s Resolve Online (VROL) portal, giving banks further monthly insights and details of each resolved dispute.

VROL access enables banks to track and benchmark their performance in dispute resolution against industry averages, while the VDMS service as a whole reduces the time and money banks have to allocate to managing disputed transactions

Want to learn more? Check out Payments Cards & Mobile’s full write-up here.

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