Visa Announces 2023 Dispute Rule Updates

Visa announced it will be making modifications to its dispute rules in April 2023.

In addition to allowing device id to be used as compelling evidence to dispute fraud in card-not-present environments, Visa will make modifications to dispute rules for cancelled recurring transactions to ensure the rule is properly applied to situations where cardholders cancel a payment method.  These changes will apply globally, excluding Brazil.

A summary of the key changes are as follows:

Effective April 15, 2023, a merchant can remedy the dispute by providing evidence of all of the following:

  1. Merchandise or services were provided – only photographic or email evidence will be accepted
  2. The same payment credential was used in two previous transactions (processed more than 120 days before the dispute) that the issuer did not report as fraudulent activity to Visa 
  3. The device ID, device fingerprint or the IP address and an additional one or more of the following in both of the undisputed transactions are the same as the disputed transaction: Customer account/login ID, Delivery address, Device ID/device fingerprint, IP address
According to Visa, this dispute condition is increasingly being improperly applied to situations where cardholders cancel a merchant’s services instead of situations when a cardholder has cancelled the payment method.  To help ensure that the dispute condition is properly applied, effective April 15, 2023, the issuer must provide certifications to support that the cardholder withdrew permission to charge the payment credential including:
  • The date the cardholder withdrew permission
  • Details used to contact the merchant, such as an email address, telephone number or physical address
  • Details of the other form of payment provided to the merchant
Download Visa’s Dispute Rule Updates for more details.

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