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Visa’s New Chargeback Rules

Most people are sure they can’t fall victim to phishing schemes. They’re too smart for that, and they know better. But the most common – and effective – phishing method is to use the identity of someone the victim knows. After hackers compromise one person’s account, they can then contact everyone in their address book. And since the email, text, or social media message comes from someone you trust, you won’t hesitate to open it.

They can also send you a message claiming to be from your service provider, claiming your account is compromised, and prompting you to change your password –which they will then harvest and use to lock you out of your own account and/or trick your contacts. Also, modern fraudsters don’t necessarily redirect you to a website. Instead, they may send an attachment that infects your device, offering them remote access to your files, or relaying your data to them.

Your friendly neighborhood phisherman

So, for example, you receive an email ‘from your boss’ asking you to review an attached document. Or you get an instant message ‘from your sister’ sharing a photo of her kids. Click and hey presto you’re infected. How can you possibly protect yourself from something like that? Well, Visa wants to help, and it issued new rules in April 2018.The rules are related to chargebacks – the process by which a customer can cancel a transaction by contacting their credit card company.

Chargebacks are intended to protect customers. If they feel suspicious, are unhappy with a product, or claim they didn’t make a purchase, the bank will refund their money and your business will typically be charged a fee. Get enough chargebacks and your merchant account could be audited or terminated.

Visa Complaints Resolution

Visa Complaints Resolution (VCR) reached the United States on April 15th but was used in Hong Kong and Singapore as far back as October 2017. It starts by pre-screening customer refund requests, cutting down fraudulent ones by 15%. In the past, Visa would refund first and ask questions later. Even if your business was cleared of all wrong-doing and the payment re-submitted, the chargeback itself wouldn’t be deleted. It would stay on your record.

Now Visa double-checks before logging complaints and reversing payments. Also, Visa used to have 22 categories for reversal. Now there are four: consumer disputes, fraud, processing errors, and authorization. The dreaded TNR Error (Transaction Not Recognized) has been taken out of play. The Visa Merchant Purchase Inquiry Tool tells you about confirmed fraud instead of just charging you, so you can stop the transaction on your end before shipping.

For more information on how Visa’s new chargeback rules can protect you from friendly fraud, or to sign up for a merchant account, please call (888) 924-2743 or go to


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