Visa Dispute Workflows

As of April 14, 2018, all new Visa disputes are processed through VCR. VCR introduced two workflow categories - Allocation and Collaboration. Any first-time disputes prior to April 14, 2018, are considered Standard, and any disputes subsequent to the date will either be designated as Allocation or Collaboration.  The dispute reason code reflects the Category Number and the dispute reason code. A Visa reason code will appear for example as 10.1,  with the category number at the beginning and the code appearing after the period.

To view the workflow type, login to Qualpay Manager, select Reports, Dispute History and select any of the dispute cases to view the Dispute Detail. View the Dispute Data section and Workflow. To view a specific workflow select the filter icon and workflow, then select the appropriate option and click Add Filter

The below table provides the category name, workflow and condition/response codes.

Category: Fraud

Category No: 10

Workflow: Allocation

Reason Codes:


Category: Authorization

Category No: 11

Workflow: Allocation

Reason Codes:


Category: Processing Errors

Category No: 12

Workflow: Collaboration

Reason Codes:


Category: Consumer Disputes

Category No: 13

Workflow: Collaboration

Reason Codes:


10.1 – EMV Liability Shift Counterfeit Fraud
11.1 – Card Recovery Bulletin
12.1 – Late Presentment
13.1 – Merchandise/Services Not Received
10.2 – EMV Liability Shift Non-Counterfeit Fraud
11.2 – Declined Authorization
12.2 – Incorrect Transaction Code
13.2 – Cancelled Recurring
10.3 – Other Fraud – Card-Present Environment
11.3 – No Authorization
12.3 – Incorrect Currency
13.3 – Not As Described or Defective Merchandise/Services
10.4 – Other Fraud – Card Absent Environment

12.4 – Incorrect Account Number
13.4 – Counterfeit Merchandise
10.5 – Visa Fraud Monitoring Program

12.5 – Incorrect Amount
13.5 – Misrepresentation


12.6.1 - Duplicate Processing
12.6.2 - Paid by Other Means
13.6 – Credit Not Processed



13.7 – Cancelled Merchandise/Services



13.8 – Original Credit Transaction Not Accepted



13.9 – Non-Receipt of Cash or Load Transaction Value


Collaboration Workflow

The Collaboration workflow, illustrated in figure 1, is used for Processing Errors and Consumer Disputes. Opt to respond within 16 days to Accept or Respond to this type of dispute from the incoming dispute date. Note that we require the same response time for all card brand disputes, irrespective of workflow type. On receipt of this dispute type, you will be automatically debited for the disputed amount. If you choose to respond, the amount of the dispute will be adjusted to your bank account. If you choose not to respond, Qualpay will automatically accept the dispute with Visa, on your behalf and expire the time frame on the dispute. The status of the dispute will be updated to “time frame expired (E).”  Automatically accepting will ensure that Qualpay does not incur additional fees for non-response.

Selecting to respond, and initiating a dispute response will require the issuing bank to respond to the dispute within thirty days of the response date. If the issuing bank rejects your response and creates a pre-arbitration, the dispute status of the current case will be updated to “issuer rejected  (D).” A new dispute case will be created to track the new pre-arbitration. On receipt of this dispute type, you will be automatically debited for the disputed amount. If you choose to respond, the amount of the dispute will not be adjusted to your bank account until a final decision is made. You will have the option to Accept or initiate a Challenge response; ten days from the incoming dispute date, Qualpay will automatically accept the dispute with Visa on your behalf and expire the time frame on the dispute. The status of the dispute will be updated to “time frame expired (E).”  Automatically accepting will ensure that Qualpay does not incur additional fees for non-response.

Challenging the dispute will give the issuer ten calendar days to respond to the pre-arbitration response. The pre-arbitration dispute status will be updated to “arbitration (Z),” an arbitration dispute case will be created, and Visa will make a final ruling on the dispute. Once the final decision is made, monies will be adjusted to the appropriate party.

Figure 1: Collaboration Workflow


Allocation Workflow

For the Allocation workflow, illustrated in figure 2, used for Fraud and Authorization disputes, Visa will perform automated checks on the validity of the dispute (including whether a credit has already been issued), and will only assign liability to a merchant if the dispute passes the validity checks. On receipt of this dispute type, you will be automatically debited for the disputed amount. As a result of Visa adjudicating this type of dispute, if you choose to respond to this dispute, you will be initiating a pre-arbitration. Qualpay will require you to decide to Accept or Respond to this type of dispute within 16 days from the incoming dispute date. Unlike the collaboration disputes, no monies are returned to you if you decide to initiate a pre-arbitration. Only if you win the pre-arbitration (because the issuer or Visa accepts) will monies be returned. If you choose not to respond, Qualpay will automatically accept the dispute with Visa, on your behalf and expire the time frame on the dispute. The status of the dispute will be updated to “time frame expired (E).”  Automatically accepting will ensure that Qualpay does not incur additional fees for non-response.

Selecting to respond and initiating a pre-arbitration will require the issuing bank to respond to the dispute within thirty days of the pre-arbitration. If the issuing bank rejects your response, the dispute status will be updated to “issuer challenged (P).” You will have the option to Withdraw or initiate an Arbitration response, 7 days from when the first-time dispute status is updated. The options will be removed after 7 days, and the status of the dispute will be updated to “lost (L).”  If you choose to create an arbitration response, Visa will make a final ruling on the dispute. Once the final decision is made, monies will be adjusted to the appropriate party. 

Figure 2: Allocation Workflow