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5 minute read

July 22, 2020

Managing Visa Cases (Beta)

Transaction disputes are a necessary part of card issuing. Marqeta enables you to manage the dispute process using Program Dashboard and the DiVA app, or with the /cases endpoint. You can manage disputes by performing tasks such as submitting a dispute, retrieving information such as dispute status, and uploading supporting documents.

Note
This feature is currently in beta and subject to change. It also requires additional activation steps. To learn more about the Beta program for this feature and about activating it for your program, contact your Marqeta representative.

The Marqeta Cases Team is available to help you implement best practices for submitting the required dispute documentation and optimizing your win rates.

This page provides information on the dispute process, best practices, and how to use the /cases endpoint to manage disputes on the Visa network. For reference information, see Cases (Visa) in the Core API Reference.

What is a dispute?

A dispute case is opened when a transaction that has been processed is disputed by Marqeta at the request of a cardholder. A dispute is often initiated if a cardholder:

  • Did not receive a product or service.

  • Did not recognize the charge or business name on their statement.

  • Believes the product to be damaged, defective, or not as described.

  • Was the victim of fraud, card theft, or identity theft.

Best practices

The following are best practices for resolving your disputes and optimizing your win rates:

  • When a card is reported lost or stolen, immediately deactivate the card to ensure a tight timeline between a lost card and potential transactions. Submit the case immediately after the dispute has been opened by the cardholder.

  • If your team is working directly with cardholders, create a dispute form or use an example from Marqeta for gathering as much information as possible along with the cardholder’s attestation of the dispute.

  • Provide the strongest possible level of documentation, such as communication with the merchant, receipts, and timelines. Incomplete dispute information or lack of documentation can decrease the likelihood of winning a dispute.

  • To submit a dispute to the Visa network, the dispute amount must be over $25. There is a cost to processing a case, so even if the card network decides in your favor, you will have lost from a cost perspective if the disputed transaction amount is less than $25.

  • If the dispute involves goods and services issues with a merchant, have a representative of your company or the cardholder first contact the merchant directly, which can result in a refund and make a dispute unnecessary.

Note
No more than 15 fraud-related disputes can be initiated against the same primary account number (PAN, also known as the card number).

Cases

Each case object includes a type field that defines the type of case. The DISPUTE type initiates a review of a transaction. Qualifying disputes result in the creation of a dispute transaction.

The case object requires a transaction token. This must always be a CLEARING transaction.

The amount disputed by the cardholder, indicated in dispute_amount, must be less than or equal to the clearing amount. Multiple partial disputes are accepted on the same clearing transaction as long as the total amount is not greater than the dispute amount.

Dispute reasons

The case object includes a dispute_reason field, which defines the allowable reasons for creating a dispute. The reason can be one of the following: FRAUD, AUTH, PROCESSING, or CONSUMER.

Fraud

A cardholder submits a fraud dispute when they see a transaction on their statement that they do not recognize, which can result from a lost or stolen card or a stolen PAN.

Auth

An authorization dispute occurs when the partner program attempts to reclaim money that the cardholder has spent that has resulted in a negative balance. This typically happens when there is a clearing transaction without an authorization transaction. In this case, the cardholder has found a way to spend money without permission from the program, such as spending more money than they have in their account balance.

Processing

A processing dispute occurs when the transaction was expected, but data or metadata is incorrect, such as the transaction amount or account number.

Consumer

A consumer dispute occurs when the cardholder has a dispute with the merchant, such as a claim that incorrect or defective merchandise was received, or that they did not receive the goods or services they paid for. In this case, the cardholder is demanding their money back and the merchant has refused.

Dispute questionnaires

When a cardholder opens a Processing or Consumer dispute, they are presented with a corresponding set of questions. These are exposed as either PROCESSING or CONSUMER in the dispute_reason field. Visa provides decision trees that require answers to certain questions if other questions are answered by the cardholder or have a certain value.

Processing errors

For processing errors, the questionnaire asks the cardholder for details about what is incorrect about the transaction. As the cardholder moves through the questionnaire, the specific questions presented depend on the answers provided. The decision tree for processing errors is shown below:

*What is incorrect about this transaction - IAN/IA/IC/IT/ID/LP

IAN (Incorrect Account Number) {
    *Is the account number on the issuer"s master file - Y/N {
        Y {
            *Does the account number on the receipt match the cardholder"s account
              number or token - Y/N {
                Y {}
                N {
                    *What is the account number on the cardholders receipt
                }
            }
        }
        N {}
    }
}

IA (Incorrect Amount) {
    *What is the amount on the cardholder"s receipt
    *Currency
}

IC (Incorrect Currency) {
    *Incorrect Currency Reason - Currency Difference/DCC Dispute {
        Currency Difference {
            *Processed through VisaNet as CAD; what was the correct currency
        }
        DCC Dispute {
            *Certification that the cardholder did not agree to Dynamic Currency
             Conversion and did not make an active choice - Y/N {
                Y {}
                N {}
            }
        }
    }
}
IT (Incorrect Transaction Code) {
    *How is Transaction Code incorrect - CRI/CRD/DCR {
        CRI (Credit instead of reversal or adjustment) {
            *Explain why the credit refund was processed in error
        }
        CRD (Credit posted instead of debit) {}
        DCR (Debit posted instead of credit) {}
    }
}
LP (Late Presentment) {
    *What is the status of the account - AC/CP/F/NF {
        AC (Account Closed) {}
        CP (Credit Problem) {}
        F (Fraud) {}
        NF (Non-sufficient Funds) {}
    }
}

Is this helpful?

For detailed information on processing errors, see The incorrect_transaction_code_details object on the Cases (Visa) page in the Core API Reference.

Consumer disputes

For consumer disputes, the questionnaire asks the cardholder for details about the dispute. As the cardholder moves through the questionnaire, the specific questions presented depend on the answers provided. The decision tree for consumer disputes is shown below:

*Dispute Due To - CR/CS/CN/DM/NR/ND/CL

CR (Cancelled Recurring Transaction) {
    *CancellationDate OR AccountClosureDate
    CancellationDate
        *Cancellation Reason
            (DONE)
    Date issuer informed merchant of account closure:
        (DONE)
}
CS (Cancelled Merchandise or Services) {
     *What was purchased - Merchandise/Services {
        Merchandise {
            *Describe what was purchased
            *Date Cardholder received or expected to receive the merchandise
            *Did the cardholder attempt to resolve the dispute with the merchant - Y/N {
                Y{ }
                N {
                    *Is attempt to resolve prohibited by local law or regulations - Y/N
                    Y {
                        *Provide Details Of Local Law Or Regulations
                    } N {
                        (INVALID)
                    }
                }
            }
            *CardholderReturnMerchandiseInd - Y/N {
                Y {
                    *Date Cardholder Returned the merchandise
                    *Date Merchant received returned merch
                    *Return Method - Face to Face/Fed Ex/DHL/UPS/Postal Service/Other {
                        Face to Face {}
                        Fed Ex {
                            Tracking Number
                        }
                        DHL {
                            Tracking Number
                        }
                        UPS {
                            Tracking Number
                        }
                        Postal Service {
                            Tracking Number
                        }
                        Other {
                            Explain how the merchandise was returned
                        }
                    }
                }
                N {
                    *Did Cardholder attempt to return the merchandise - Y/N
                        Y {
                            *Date of Attempted return
                             Provide a detailed description of how the cardholder
				  attempted to return and the disposition of the merchandise
                        }
                        N { }
                }
            }
            *DidCardholderCancel - Y/N {
                Y {
                    *Cancellation Date
                    *Cancellation Reason
                }
                N {}
            }
            *CancellationPolicyProvidedInd - Y/N {
                Y {}
                N {}
            }
            "Provide Certification of One of the following" {
                Merchant refused to provide return authorization
                Merchant refused to accept returned merchandise
                Merchant informed cardholder not to return the merchandise
            }
        }
        Services {
            Type of Service - Timeshare/Guaranteed Reservation/Other {
                Timeshare {
                    *Did the cardholder cancel? - Y/N {
                        Y {
                            *Cancellation Date
                            *Cancellation Reason
                        }
                        N {}
                    }
                    *Date of the timeshare or the date the contract or related
			 documents were received
                }
                Guaranteed Reservation {
                    *Date of service or expected service
                    *Cancellation Date
                    *Was a cancellation policy provided? - Y/N {
                        Y {}
                        N {}
                    }
                    Provide certification of one of the following {
                        The cardholder properly cancelled the guaranteed reservation
                        The cardholder attempted to cancel within 24 hours of delivery of
			        the reservation confirmation
                        The merchant billed a no show transaction for more than one day’s
                            accommodation or rental
                    }
                }
                Other {
                    *Describe what was purchased
                    *Did the cardholder cancel? - Y/N {
                        Y {
                            *Cancellation date
                            *Cancellation reason
                        }
                        N {}
                    }
                    Date of service or expected service
                    Was cancellation policy provided? - Y/N {
                        Y {}
                        N {}
                    }
                }
            }
            * Cancellation Date
        }
    }
}

CN (Credit not processed) {
    *Was a credit voucher, voided transaction receipt or refund acknowledgement
        given - Y/N {
        Y {
            *Is the Credit voucher, transaction receipt or refund acknowledgement dated? -
                Y/N {
                Y {}
                N {}
            }
        }
        N {}
    }
}

DM (Damaged or Defective Merchandise) {
    *What was purchased - Merchandise / Services {
        Merchandise {
            Provide certification of one of the following {
                Merchant refused to provide return authorization
                Merchant refused to accept returned merchandise
                Merchant informed cardholder not to return the merchandise
            }
        }
        Services {}
    }
    *What was ordered and how it was damaged or defective
    *Date merchandise was received
    Date the cardholder first notified the issuer of the dispute
    *Did the cardholder attempt to resolve the dispute with the merchant - Y/N {
        Y {}
        N {
            *Is attempt to resolve prohibited by local law or regulations - Y/N {
                Y {
                    *Provide details of local law or regulations
                }
                N {
                    INVALID
                }
            }
        }
    }
    *Did the cardholder return the merchandise - Y/N {
        Y {
            Date Cardholder returned the merchandise
            Date merchant received the returned merchandise
            *Return Method - Face to Face/Fed Ex/DHL/UPS/Postal Service/Other {
                Face to Face {}
                Fed Ex {
                    Tracking Number
                }
                DHL {
                    Tracking Number
                }
                UPS {
                    Tracking Number
                }
                Postal Service {
                    Tracking Number
                }
                Other {
                    Explain how the merchandise was returned
                }
            }
        }
        N {
            Did cardholder attempt to return the merchandise - Y/N {
                Y {
                    *Date of attempted return
                    Explain how the merchandise was returned
                    Provide a detailed description of how the cardholder attempted to
			    return and the disposition of the merchandise
                }
                N {}
            }
        }
    }
}
NR (Merchandise or Services not received) {
    *Provide detailed description of what was purchased and an explanation of
     the dispute
    *What was the expected receipt date AND time
    *Did the cardholder cancel prior to the expected date - Y/N {
        Y {
            *Cancellation Date
            *Cancellation Reason
        }
        N {}
    }
    *Did the cardholder attempt to resolve the dispute with the merchant - Y/N {
        Y {}
        N {
            *Is attempt to resolve prohibited by local law or regulations - Y/N {
                Y {
                    *Provide details of local law or regulations
                }
                N {
                    INVALID
                }
            }
        }
    }
    *What was not received - Merchandise/Services {
        Merchandise {
            *Was the merchandise delivered to the wrong location - Y/N {
                Y {
                    *Provide address of the agreed location
                }
                N {}
            }
            *Did cardholder return merchandise - Y/N {
                Y {
                    *Date cardholder returned merchandise
                    *Date merchant received returned merchandise
                }
                N {
                    *Did the cardholder attempt to return the merchandise - Y/N {
                        *Date of attempted return
                    }
                }
            }
            Explain how the merchandise was returned
        }
        Services {}
    }
}
ND (Not as Described) {
    *Date merchandise or service was received
    Date the cardholder first notified the issuer of the dispute
    *Does the dispute involve merchandise or services provided that do not match
        the merchant"s verbal description - Y/N {
        Y {
            *Did the cardholder attempt to resolve the dispute with the
		    merchant - Y/N {
                Y {}
                N {
                    *Is attempt to resolve prohibited by local law or regulations {
                        Y {
                            *Provide details of local law or regulations
                        }
                        N {
                            INVALID
                        }
                    }
                }
            }
        }
        N {}
    }
    Did the merchandise or services differ from what was described on the
	receipt - Y/N {
        Y {
            Provide details of what was ordered and not as described
        }
        N {
            *Provide details of what was ordered and not as described
        }
    }
    *Is attempt to resolve prohibited by local law or regulations - Y/N {
        Y {
            *Provide details of local law or regulations
        }
        N {
            INVALID
        }
    }
    *What was purchased - Merchandise / Services {
        Merchandise {
            *Did the cardholder return the merchandise - Y/N {
                Y {
                    Date cardholder returned the merchandise
                    Date merchant received the returned merchandise
                    *Return Method - Face to Face/Fed Ex/DHL/UPS/Postal Service/
			        Other {
                        Face to Face {}
                        Fed Ex {
                            Tracking Number
                        }
                        DHL {
                            Tracking Number
                        }
                        UPS {
                            Tracking Number
                        }
                        Postal Service {
                            Tracking Number
                        }
                        Other {
                            Explain how the merchandise was returned
                        }
                    }
                }
                N {
                    *Did the cardholder attempt to return the merchandise - Y/N {
                        Y {
                            *Date of attempted return
                             Provide a detailed description of how the cardholder
                             attempted to return and the disposition of the
                             merchandise
                        }
                        N {}
                    }
                }
            }
            Provide certification of one of the following {
                Merchant refused to provide return authorization
                Merchant refused to accept returned merchandise
                Merchant informed cardholder not to return the merchandise
            }
        }
        Services {
            *Did the cardholder cancel the services - Y / N {
                Y {
                    *Cancellation Date
                    *Cancellation Reason
                }
            }
        }
    }
}

CL (Non Receipt of Cash or Load) {
}

Is this helpful?

For detailed information on consumer disputes, see The consumer_dispute_type_dispute_details object on the Cases (Visa) page in the Core API Reference.

Case transitions

Case transition events include activities such as a case being opened, readied, or closed. These activities transition the state of a case.

Case transition notifications are sent as case transition events occur, and contain detailed information about the events.

Each notification contains a state field that categorizes the case transition event. The following table describes each case transition event. Values in the State column are the literal values of the notification’s state field. When configuring a webhook to capture these events, you must prefix this with casetransition (for example, casetransition.open).

The OPEN and READY states are staging states where document gathering and other concerns are addressed. The CHARGEBACK_INITIATED state formally starts the dispute process.

State Description

OPEN

The case was created.

CLOSED

The case was closed.

READY

The case is ready for review.

CHARGEBACK_INITIATED

A chargeback was initiated against the case

Managing disputes with the Cases endpoint

Use the /cases endpoint to manage disputes, including tasks such as initiating a dispute, uploading supporting documents, and receiving status updates. You can also use the /cases endpoint to track dispute progress by retrieving information such as:

  • A list of cases and their current state.

  • Information on a specific case.

  • A specific case transition.

  • An array of all dispute transitions related to a particular case.

  • Case documents.

For details, see Cases (Visa) in the Core API Reference.

Resolution timeframes

The following are the expected timelines from the Visa SLA for responses to a dispute.

Fraud and authorization:

  • Pre-arbitration: 30 days

  • Pre-arbitration response: 30 days

  • Arbitration response: 10 days

Processing errors and consumer disputes:

  • Dispute response: 30 days

  • Pre-arbitration: 30 days

  • Pre-arbitration response: 30 days

  • Arbitration response: 10 days

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