Pre- Compliance Chargebacks & Reason Code 98 Explained

Ready to see how Chargeback Gurus can help your business with chargebacks and fraud? Schedule a demo with us here: https://hubs.ly/H0mgh-T0 There are many different rules and codes when it comes to chargebacks, and to property fight and recover them, merchants should seek to have some basic knowledge of these. There's a special type of chargeback called a "pre-compliance" chargeback under the Visa network. This type of chargeback happens when banks can initiate to seek reimbursement from other banks when rule violations cause them financial harm. If one party believed that the other party violated a chargeback rule by Visa, they could file one of these chargebacks under Reason Code 98. However, this reason code was deemed no longer necessary with the introduction of the Visa Dispute Resolution system and the Visa Resolve Online (VROL) platform, and the process became a function of VROL. To enter into this process, Visa requires that a few occurrences have to take place first, such as at least one party having to violate Visa Core Rules and Visa Product and Services Rules. Among others, it requires that the financial loss would not have occurred had the other party followed the rules. Visa then reviews the facts of the situation and decides who is responsible for bearing the financial loss. Before, the aggrieved party could solve this through issuing a chargeback under reason code 98, but now Visa asks that these be handled over their VROL platform. Read the article: https://www.chargebackgurus.com/blog/pre-compliance-chargebacks ©Chargeback Gurus 2020 Production: Courtney Freeman Narration: Sarah Rife