Pre- Compliance Chargebacks & Reason Code 98 Explained

The chargeback process is heavily rule-based, and it can be tempting to believe that if you memorize the rules and follow them carefully, you can avoid any serious chargeback problems. As any eCommerce merchant can tell you, it’s not really that simple. In fact, there exists a special type of “pre-compliance” chargeback that banks can initiate to seek reimbursement from other banks when rule violations cause them financial harm. What should merchants know about these behind-the-scenes chargebacks—and more importantly, do they need to worry about trying to prevent them?

Pre-compliance chargebacks happen under the Visa card network as a way to resolve chargeback-related disputes between participants in the Visa network. When one party believed that another party had violated a Visa rule in the course of handling a dispute, they could file a chargeback under reason code 98 (“other”) to seek redress.

ith the introduction of the Visa Dispute Resolution system and the Visa Resolve Online (VROL) platform, reason code 98 became obsolete—Visa no longer wanted chargebacks filed under a generic catch-all reason code, and made the pre-compliance chargeback process a function of VROL.

Full Text:
https://www.chargebackgurus.com/blog/pre-compliance-chargebacks

©Chargeback Gurus 2020
Production: Courtney Freeman 
Narration: Sarah Rife