Visa Inc., a leading digital payments company, recently unveiled changes to its dispute program, aiming to make it easier for merchants to combat first-party fraud in card-not-present transactions. This modification is expected to save small businesses worldwide over a billion dollars in losses within the next five years, ultimately benefiting consumers and merchants alike.
The new rule amendment provides merchants with additional evidence to demonstrate the validity and authorization of a disputed charge. By enabling business owners to retain funds that rightfully belong to them while safeguarding legitimate cardholder activity, Visa aims to alleviate the devastating impact of first-party fraud on small businesses.
Kaseedee Pilarz, owner of PilatesBKLYN, a fitness studio in Brooklyn, New York, expressed her enthusiasm about the rule change, stating, “This is going to be a gamechanger for my business. I have faced situations where legitimate membership charges have been disputed. If I lose the dispute, not only do I lose the membership fee, but I also incur a penalty. This change will ensure I have a fair chance during those disputes, which can make all the difference in meeting payroll or not.”
The decision to revamp the dispute process is an integral part of Visa’s strategy to combat various types of fraud on its network. The company recognized the significant rise in first-party fraud rates, which necessitated this modification. Paul Fabara, Chief Risk Officer at Visa, expressed pride in the organization’s efforts to prevent fraud and empower small merchants to fight for their rightfully earned payments. He affirmed Visa’s commitment to protecting innocent consumers from fraud and upholding the zero-liability policy for unauthorized transactions.
Smaller businesses are particularly vulnerable to crippling fraud-related losses due to a lack of resources compared to larger organizations. Addressing first-party fraud requires collaborative partnerships, as emphasized by Julie Fergerson, CEO of the Merchant Risk Council, a global non-profit organization connecting eCommerce fraud prevention and payments professionals. Fergerson commended Visa’s commitment to reducing this threat to merchants and hailed the rule change as a historic step forward.
Visa Inc. is a global leader in digital payments, facilitating secure transactions between consumers, merchants, financial institutions, and government entities across over 200 countries and territories. The company’s mission is to connect the world through innovative, reliable, and convenient payment networks, fueling the growth and prosperity of individuals, businesses, and economies worldwide. Visa believes that inclusive economies uplift everyone and that access to financial services is pivotal in shaping the future of money movement.
For further information about Visa Inc., its services, and its vision, please visit Visa.com.