Prepared By:Faisal bin hasan siddique Card department, IFIC Bank Limited

DISPUTE CLAIMED TRANSACTION PROCESSING MANAUL

VISA NETWORK

DIFFERENT KIND OF DISPUTES :

Card transaction happened basically in two processes. Card present mode environment transactions and Card absent mode transactions for both the case card holders has to preserve the invoices or documents (Customer copies). Basically a dispute arise when a card holder officially make any complain against any particular transaction accord in his/her account. The main disputes reasons are describe below:

1. No Authorization: Merchant settles the transaction without taking proper authorization. Settlement processed, but Authorization not completed properly.

2. Late Presentment: Transaction (auth.) processed properly, but in the time of Clearing & settlement no proper time frame maintained as prescribed by rules & policy.

3. Declined Authorization: Transaction declined at merchant end; but settlement done by the merchant at card holder’s account.

4. Fraudulent multiple transactions: Frequent transaction of small amount, abnormal amount (beyond card limit) accord in card holder account with in short span of time.

5. Counterfeit Transactions: This kind of transaction accord in skimmed card. The main data of the card is stolen and duplicate card produced and several transactions made, but customer is not properly informed about the card transaction.

6. Duplicate Transaction: This kind of dispute accord due to late responses (Net work problem from Issuer or Acquirer host end) problem. In merchant end the one approved transaction shown, but in the time of clearing & settlement in the card holder account the transaction settled by the merchant several times.

WHAT IS CHARGE BACK?

A charge back is a transaction, which is returned by the issuer to the acquirer, unpaid.

When can the Issuer make a chargeback? The issuer must charge back each transaction separately. It must not combine transactions and charge them back as a single transaction.

Charge back may categories in to dispute groups, as follows: Request for information by the issuer that is not properly fulfilled by Acquirer The Merchant or Acquire failed to follow correct Authorization Procedures Fraud has occurred A Processing Error has been made by either the merchant or the acquirer The dispute relates to Cancelled/Returned merchandise or services Cardholder alleges Non-receipt of Goods/Services Duplicate process transaction Non receipt of transaction items

WHAT IS RE-PRESENTMENT?

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A representment is used when the acquirer reject a chargeback claim made by the issuer and sends the transaction back to the Issuer through the net settlement account.

When can the Acquire make a representment?

The acquirer can represent a charge back if:

Mis-sorted chargeback A chargeback is sent to the wrong acquirer. Supporting document needed for a representment.

Missing or incomplete chargeback documentation The supporting documentation required for the chargeback was not received or was received incomplete by the acquirer.

Invalid Acquirer Reference Number or Account Number The Acquirer Reference Number (ARN) or card number contained in the charge back is not valid or is different from the one originally presented.

Additional information available to remedy the chargeback The acquirer has additional information that remedies the chargeback, or the acquirer can prove that a credit or a reversal was processed. The Charge back is invalid.

Illegible account number or amount: The acquirer may remedy [RC: applicable] which covers illegible account or account in a fulfillment, by representing with a legible copy of the requested item if this is available. This representment should be actioned within specific time period of the charge back processing date. That means, the acquirer has additional information or evidence that remedies the dispute between the cardholder and the merchant or that proves the chargeback wrong.

WHAT IS ARBITRATION?

Arbitration is used when the issuer and the acquirer are unable to settle the dispute through the charge back and the representment process. At this point the member holding the liability for the transaction may ask the net settlement account bank to make a final judgment.

Visa DMS Manual

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The following cardholder has officially complained that he didn’t receive any cash while making withdrawal transaction at Visa net work ATM terminal (Visa Off us- Tran. mode).

Step 01:

Step 02: (Incoming batch --- trans. search----send to dispute)

Step: 03 (Out going batch and create manually)

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Step: 04

Step: 05 (Dispute Manager Batch) – Dispute Claimed Transaction File

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Step: 06

Step: 07

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COPY REQUEST

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Follow the Visa Dispute Manual for different types of dispute claimed transactions. (RC and MMT)

Example: Card holder does not recognize the transaction or service not rendered.

RC: 28

RC: 32

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CHARGE BACK

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Follow the Visa Dispute Manual for different types of dispute claimed transactions. (RC and MMT)

Example:

RC -90 – if cash was not received, MMT: Cash / Value not received. Save the file and leave from DMS manager batch file)

Source amount: (4000 /- )

OR

Particle dispensed: Source amount 500/-

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Member Message Text: Particle dispensed of transaction amount of Tk 9500 /-

RC: 30 Service was not render (Source amount 9000 /-)

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** Upload merchant or customer dispute claimed application/form through VORL. (Supporting Documents)

RC: 82 Duplicate process transactions (Source amount 1130/-)

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Member Message Text SAM AUTH USD 2X, OTHER ARN 749025931550******66732

RC: 75: Card holder does not recognize the transaction (Source amount 590/- )

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Member Message Text CH DOES NOT RECOGNIZE RR DATE 130227

RC: 72 No Authorization has obtained (Source amount 4394.86)

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Member Message Text NO AUTHORIZATION, EXCD CHIP FLOOR LIMIT

RC: 77 No such account number

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RC : 81 : Card not present mode transaction

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** Create questioner and upload card holder’s application through VORL (in this case User access: IFIC VISA ISSUER)

FEE COLLECTION

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Ref: As per Visa BASE II Clearing BAR Code

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RE-PRESENTMENT

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Follow the Visa Dispute Manual for different types of dispute claimed transactions. (RC and MMT)

(Visa net work transactions: Outgoing batch - create manually)

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Source amount 20,000/-

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As per, Visa Dispute Re-solution Guideline (Visa-international-operating-regulations)

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ATM A/C: 0 (Select)

Acct. Type: 0 (Select)

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Step: 08 (process transaction in outgoing batch) – Check the file and process the batch

After that upload the particular batch

User ID : ------Pass word: -------

Discussed with very few regular nature of DMS issues (ATM &POS) under visa net work transactions… (Operational Manual)

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Step: 09

To process the Visa outgoing file, issuing / acquiring bank (3rd party) will e-mail [CFT (txt. file) the outgoing txt.content file] to ITCL (Q-cash systems provider) to do the needful tasks at their end. (Outgoing-status and visa out going exceptional log file will be provided by ITCL)

Please follow up the latest (reference) Visa manual and guideline : Visa-international-operating-regulations0316_BASE II Clearing Data Codes manual User Access: Visa VOL Issuer & AcquirerVORL Guideline and Manual Snap images: Card management software: TranzWare Card Management System (Campus plus-CMS v.4.13.44.6.11 (104), Q-cash systems provider-ITCL

THANK YOU

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