VISA chargeback and dispute rules for ecommerce merchants – revised

Visa has revised their chargeback and dispute rules and we wanted you to be aware of those changes and the new types of compelling evidence that Visa will be accepting in regards to certain disputes.

The Visa chargeback reason codes that this impacts are:

30 – Services Not Provided or Merchandise Not Received 53 – Not As Described or Defective Merchandise
81 – Fraud – Card Present Environment 83 – Fraud – Card Not Present Environment

Most of the changes revolve around purchases made in ecommerce transactions, both for merchandise, services and digital goods.

For example, for all these codes, Visa will accept evidence such as photographs or emails that prove a link between the person receiving the merchandise or services and the cardholder. This evidence can also be used to provide proof that the cardholder disputing the transaction is in possession of the merchandise and/or is using the services.

For digital goods, Visa has expanded the types of proof a merchant can submit that verify the transaction did occur.  These include, but are not limited to, offering the purchaser IP address and location at the time of the transaction download, their name and email address linked to the customer profile on record with the merchant, proof that the merchant’s website was accessed by the cardholder for goods or services on or after the transaction date as well as evidence that the device and card used in the disputed transaction were the same as in any previous, undisputed transactions.

Other changes regard deliveries to places of business, acceptance signatures, recurring transactions, as well as digital media downloads.  It should be noted that these changes also update pre-arbitration conditions and certification requirements when responding to compelling evidence offered by the cardholder. Issuers are required to:

  • Certify that they have contacted the cardholder and reviewed the compelling evidence and
  • Provide an explanation of why the cardholder continues to dispute the transaction

Here’s the complete Visa Chargeback and Dispute Rules document – we hope you find it useful.