Handle Visa Claims Resolution (VCR) allocation vs. collaboration dispute workflows

Steps

1. Identify the dispute reason code from the incoming chargeback to determine the workflow: allocation disputes (e.g., fraud, authorization-related) assign liability to the merchant automatically without requiring issuer collaboration, while collaboration disputes (e.g., processing errors, consumer disputes) require back-and-forth between issuer and acquirer.
2. For allocation disputes, assess whether compelling evidence can overcome the pre-assigned liability; if so, submit a representment with evidence through your acquirer within the VCR deadline (typically 30 calendar days from the dispute processing date).
3. For collaboration disputes, respond to the initial inquiry from the issuer within the specified timeframe by providing supporting documentation through your acquirer's dispute portal or API.
4. Track dispute status and deadlines using the Visa Dispute Management System (VDMS) or your acquirer's dispute API; VCR condensed the multiple legacy chargeback cycles into a two-cycle maximum.
5. If the first representment is denied, evaluate whether pre-arbitration or arbitration escalation is warranted based on dispute amount and evidence strength.
6. Document all dispute actions with timestamps and response codes for compliance and chargeback ratio monitoring.