Dispute:

A dispute is when a cardholder queries a transaction which appears on their credit or debit card account statement.

As a card issuer, we must adhere to the card scheme rules for resolution of a disputed transaction. Each card scheme VISA and NPSB has its own dispute resolution process. This process outlines the circumstances and timeframes during which we can dispute a transaction and claim a refund on your behalf.

Based on business segmentation, presently we are supporting issuing business categories like as follows:

  1. Issuing Dispute

Issuing Dispute:

An issuer member bank receiving the cardholder claimed that they did not execute a specific transaction or not receiving the service/goods as agreed. An issuer member bank will initiate a dispute process will be initiated by submitting a claim for dispute, attached to the appropriate providing documents.

Below following step to be needed to resolve issuing dispute VISA and NPSB

Copy Request:

When a cardholder cannot recognize a given transaction on her card statement, she would typically call her card issuer for help. The card issuer would first look in its own records to help to answer the cardholder’s questions, but if no determination is made, the issuer would send a “request for copy “to the acquirer for this transaction.      

Chargeback:

 Chargeback is a process that allow debit and credit card holders to reverse transactions when there is a problem with the goods or services they’ve purchased using their cards.

Pre-arbitration:

The term “Pre-arbitration” is pretty self –explanatory, it is the phase that is completed immediately forgoing arbitration. In most situations, if the issuer skips the pre-arbitration and takes the chargeback directly to arbitration, the bank will likely lose the case.

The purpose of a Pre-arbitration Chargeback:

  • The issuer changed the original chargeback reason code.
  • The issuer obtained new information from the cardholder.
  • The documentation provided by the merchant was incomplete, the compelling evidence wasn’t compelling or the supporting evidence wasn’t appropriate for the reason code

   

Dispute Condition

Issuer

Acquirer

Acquirer Dispute Response Timeline

10 - Fraud

Copy Request

Copy Request Fulfilment

30 days from copy request Process date

Chargeback

Pre-arbitration

30 days from chargeback Process date

Pre-arbitration Declined/Accept

Arbitration Filling

10 days from pre-arbitration response date

11 - Authorization

Copy Request Process

Copy Request Fulfilment

30 days from copy request Process date

Chargeback

Pre-arbitration

30 days from chargeback Process date

Pre-arbitration Declined/Accept

Arbitration Filling

10 days from pre-arbitration response date

12 - Processing Error

Copy Request Process

Copy Request Fulfilment

30 days from copy request Process date

Chargeback

Re-presentment

30 days from chargeback Process date

Pre-arbitration

Arbitration Filling

30 days from pre-arbitration response date

13 - Consumer Dispute

Copy Request Process

Copy Request Fulfilment

30 days from copy request Process date

Chargeback

Re-presentment

30 days from chargeback Process date

Pre-arbitration

Arbitration Filling

30 days from pre-arbitration response date

Arbitration Chargeback/ Arbitration filling:

The chargeback and re-presentment cycle has been completed and the member (Issuer & Acquire) bank has not been able to resolve the dispute or if the issuing and acquiring bank does not accept financial responsibility for the dispute transaction or member bank has not followed the required VISA steps of a re-presentment/second presentment/pre-arbitration stage then issuer or acquirer bank go for arbitration chargeback. For VISA it should be complete with 10 days of a pre-arbitration stage. Issuer or acquirer bank can reply, withdraw or accept financial responsibility within 7 calendar days from the VISA acknowledgement date.  

Steps in the Issuing Dispute Process:

Complain Sources:

Branch, regular mail from sources, service quality department, call center, Bangladesh bank

 

Check the below information mention in customer claim  

·         Customer account number

·         Cardholder signature

·         Dispute amount

·         Transaction date

·         Dispute reason

·         Settled/Unsettled status

 

Unsuccessful Transaction:

For Unsettle unsuccessful transactions, check the transactions in VROL (VISA), XML reports (NPSB) as well as respective suspense GL account.

 

Settled Transaction:

For settled transaction we need to initiate chargeback in VROL (VISA) or DMS in NPSB.

 

Check settlement reports & fund status in GL account as credit received & keep the fund in chargeback suspense GL account at least 30 days from chargeback central processing date.  

If re-presentment processed by Acquirer

·         Download the supporting documents from system (VROL/NPSB)

·         Check the sales slip & other doc’s are comply as per (VISA/NPSB) standard

 

If re-presentment documents are not comply Visa/NPSB standard or incomplete information then required to initiate pre-arbitration/arbitration- chargeback/2nd chargeback.

Steps of Issuing Dispute Process for Fraud Transaction

Complain Sources: Branch, Business, Call center, Bangladesh bank

Call Center: Our call center executive while received a call from customer as transaction is fraud and customer/ cardholder declared that he/her did not authorized the transaction. Then our call center executive instant block the card and collect fraud transaction related following listed information from customer.

Respective officer fill-up the below sample format with cardholder’s provided information and print and signed it then mail send to supervisor with below attached information for verification purpose.  

Card Number

Cardholder's Name

Transaction Date & Time

Transaction Amount

Disputed Amount

Dispute Reason

Transaction Settled or Unsettled Status

Card in Cardholder possession or not

Communicator Name with Cardholder's

Remarks

438561XXXXXX4569

Md. Nazrul Islam

16-June-19, 12:58 PM

20000

8000

Fraud

Settled/Unsettled

Yes/No

Anisur Rahman

 

 

Check the below information mention in customer claim  

·         Customer account number

·         Cardholder signature

·         Dispute amount

·         Transaction date

·         Dispute reason

·         Settled/Unsettled status

 

Unsuccessful Transaction:

For Unsettle unsuccessful transactions, check the transactions in VROL (VISA), XML reports (NPSB) and Q-cash settlement as well as respective suspense GL account.

 

Settled Transaction:

For settled transaction we need to initiate chargeback in VROL (VISA) or DMS in NPSB or Q-DMS.

                                          Steps of Chargeback Initiated in VISA/NPSB system:

Issuer Certification & Fraud reporting with Exception File Update in chargeback stage:

  • While issuer going to initiate chargeback in VISA system issuer should certification on behalf of customer that, this is fraud transaction and customer /cardholder did not authorized the transaction.
  • Fraud reporting with Exception file will update in VISA system at least 30 days

Check settlement reports & fund status in GL account as credit received & keep the fund in chargeback suspense GL account at least 30 days from chargeback central processing date. 

If re-presentment processed by Acquirer

·         Download the supporting documents from system (VROL/NPSB)

·         Check the sales slip & other doc’s are comply as per (VISA/NPSB) standard

 

If re-presentment documents are not comply Visa/NPSB standard or incomplete information then required to initiate pre-arbitration/arbitration- chargeback/2nd chargeback.

Pre-arbitration:

The term “Pre-arbitration” is pretty self –explanatory, it is the phase that is completed immediately forgoing arbitration. In most situations, if the issuer skips the pre-arbitration and takes the chargeback directly to arbitration, the bank will likely lose the case.

The purpose of a Pre-arbitration Chargeback:

  • The issuer changed the original chargeback reason code.
  • The issuer obtained new information from the cardholder.
  • The documentation provided by the merchant was incomplete, the compelling evidence wasn’t compelling or the supporting evidence wasn’t appropriate for the reason code

After fraud chargeback response from acquirer side issuer should act in following manners until rule issue from VISA end.     

Dispute Condition

Issuer

Acquirer

Acquirer Dispute Response Timeline

10 - Fraud

Copy Request

Copy Request Fulfilment

30 days from copy request Process date

Chargeback

Pre-arbitration

30 days from chargeback Process date

Pre-arbitration Declined/Accept

Arbitration Filling

10 days from pre-arbitration response date

11 - Authorization

Copy Request Process

Copy Request Fulfilment

30 days from copy request Process date

Chargeback

Pre-arbitration

30 days from chargeback Process date

Pre-arbitration Declined/Accept

Arbitration Filling

10 days from pre-arbitration response date

 

Contact Person:

Name: Md. Nazrul Islam

Contact: +880241080751-4; Ext: 104

Mobile: 01777797844

© Meghna Bank PLC. All rights reserved.

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