Dispute Resolution Forum

Visa Europe
Dispute Resolution Forum
Presentation Material
Forum: September 2011
October 2011
VISA EUROPE CONFIDENTIAL INFORMATION - Member Use Only

Dispute Resolution Best Practice Guide
Visa Europe Dispute Resolution

Presentation Material
The Visa Europe Dispute Resolution Forum took place on Monday 26th and Tuesday 27th
September 2011. This document provides the presentation materials and forum minutes
as a reference tool for Issuers and Acquirers. We hope this information helps members
with their back-office operations. Information from the feedback sessions and meeting
minutes will follow.
Visa Europe is committed to providing regular dispute-related information to assist
Acquirers and Issuers. The Dispute Resolution Team will publish a series of newsletters to
assist Members and their Dispute Teams. These will be published on VROL from
December 2011. The date of the next Dispute Resolution Forum will also be announced on
VROL.
For all disputes, it is important to follow the applicable Visa Europe Operating Regulations
(or any other dispute-related member letters or best practice documents) and provide
proper supporting information / documentation.
Dispute Resolution Contact Details

E-mail: disputes@visa.com.
Provide your feedback: feedbackdisputes@visa.com

Dispute Resolution Forum Presentation Guide
September 2011
ii
Table of contents
Dispute Resolution Statistics ..................................................................................... 1
Dispute Resolution Rule Changes ............................................................................ 6
Mobile / Contactless and Dispute Resolution ......................................................10
Fraud Trends ............................................................................................................... 21
VbV and RC 30 .......................................................................................................... 35
Fraud and VROL......................................................................................................... 38
London 2012 Olympic Disputes.............................................................................. 45
Compliance Best Practices ................................................................................... 48
Dispute Resolution Forum Minutes ....................................................................... 58

September 2011
iii
Dispute Resolution Statistics

VE Transactions vs. Chargebacks
% 0.045
0.041
0.039
0.04
0.039
0.033
0.035
0.034
0.03
0.031
0.033
0.028
0.027
0.030
0.025
0.025
0.024
0.023
0.02
0.022
201 0
201 1
0.01 5
0.01
0.005
ly
Ju
Ju
ne
M
ay
il
pr
A
M
ar
ch
ua
Fe
Ja
br
nu
ar
y
ry
Month
Visa Europe
Member use only
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as Needed
Visa Europe Dispute Resolution Forum
1
Presentation Identifier.1
Top 5 Chargebacks RC % vs. Representments

VE Issued Cards vs. VE and VI Acquirers
% 70.00
60.00
59.33
50.00
40.00
% RC vs total Chbks
30.00
26.40
% Repr. Vs Chbks per RC
23.40
19.99
20.00
13.48
12.54
10.00
7.17
6.27
5.09 4.56
7.01
3.29
0.00
RC83
RC75
RC30
RC41
RC72
Other
RC
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September 2011
Visa Europe Cases Filed

2010 - Arb Cases = 86.71% / Comp Cases = 13.29%
2011 - Arb Cases = 66.91% / Comp Cases = 33.09%
Vol 350
2010
289
300
250
200
2011
224
172
160
142
137
120
150
97
96
100
115
117
113
89
89
84
70
78
74
59
50
ec
D
ov
N
O
ct
pt
Se
ug
ly
Ju
ne
Ju
M
ay
pr
il
A
b
M
ar
ch
Fe
Ja
Month
Visa Europe
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10
Visa Inc Cases Filed

2010 - Arb Cases = 89.73 % / Comp Cases = 10.27 %
2011 - Arb Cases = 89.05 % / Comp Cases = 10.94 %
Vol 400
2010
354
350
2011
310
300
250
251
230
246
262
237
232
212
204
196
200
247
230
189
150
100
50
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Month
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2
September 2011
Visa Europe Filed Case Amounts
Vol 450
387
400
375
350
314
300
241
250
240
2010
182
200
2011
173
170
150
100
66
40
50
0
0 - 249
250 - 499
500 - 999
1000 - 4999
5000+
Euro
Visa Europe
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Visa Inc Filed Case Amounts
Vol 1200
1000
985 1007
800
2010
600
478 504
400
525
428
2011
481
381
200
104
71
0
0 - 249
250- 499
500. - 999
1000 - 4999
5000
USD
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September 2011
Visa Europe Top 5 Reason Codes Filed

Win/Loss Ratio
Issuer Wins
Vol
%
Acquirer Wins
80
70
73
69
65
Issuer Wins
Vol
%
80
Acquirer Wins
74
74
70
64
59
60
60
50 50
50
50
53
47
50 50
41
40
36
35
40
31
27
30
30
20
20
10
10
26
26
RC83
RC30
RC81
RC62
RC75
RC30
RC83
RC81
2010
RC75
RC85
2011
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VE Issuer VI Acquirer
Top 5 Reason Codes Filed Win/Loss Ratio
Issuer Wins Acquirer Wins
90
79
75
78
80
65
79
75
78
76
73
70
58
60
50
40
Acquirer Wins
90
80
70
Issuer Wins
60
50
42
40
35
30
25
22
21
30
20
20
10
10
24
21
23
RC90
RC83
26
22
0
RC81
RC90
RC83
RC62
RC75
RC62
2010
RC81
RC75
2011
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4
September 2011
VI Issuer VE Acquirer
Top 5 Reason Codes Filed Win/Loss Ratio
%
80
Issuer Wins Acquirer Wins

76
76
69
70
Issuer Wins
%
80
66
76
74
69
70
64
60
60
Acquirer Wins
60
50
55
50
44
40
40
34
31
30
40
24
35
30
24
31
26
22
20
20
10
10
0
RC83
RC30
RC85
RC75
RC81
RC83
RC30
RC85
2010
RC81
RC75
2011
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16
Visa Europe Average Days to Close Cases
Days 70
61
64
63
60
62
60
53
51
49
50
50
53
53
62
59
54
45
45
40
2010
30
2011
20
10
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Month
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17

September 2011
Dispute Resolution Rule Changes

Cardholder Activation Transactions
Type A, B & C
The current rules for transactions at Unattended Acceptance Terminals (UAT's)
were developed prior to the Visa Europe 2005 EMV liability shift.
The rules were intended to bridge the gap between the migration from
acceptance at magnetic stripe unattended devices to those which were EMV
compliant. The three CAT types identified, are as follows:
- Type A
- Type B
- Type C
From 15th October 2011, the defined terms for CAT type A, B and C transactions
will be discontinued.
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New Unattended Acceptance Terminals Rules

For transactions dated 15 October 2011, the rules for deploying and managing
UAT's will become effective.
UAT's will be split into the following categories:
Not Authorised - for magnetic stripe transactions above merchants floor limit
Authorised Offline for chip cards below the floor limit which allow offline
authorisation
Authorised Online for transactions in excess of the floor limit
Floor limits will be introduced for UAT's to manage authorisation and help
determine liability
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6
September 2011
Unattended Acceptance Terminal Rules

Not authorised
A zero floor limit will apply to all transactions initiated with a magnetic stripe at
a UAT, with the following exceptions:
- MCC 4111 - Local and suburban commuter passenger transport including
ferries
- MCC 4112 - Passenger railways
- MCC 4131 - Bus lines
- MCC 4784 - Tolls and bridge fees
- MCC 7523 - Parking lots, parking meters and garages
A floor limit of 40, or local currency equivalent, will apply to transactions
initiated with a magnetic stripe at a UAT using these MCC's within Visa Europe.
For transactions initiated outside of Visa Europe, a floor limit of US $25 or local
currency equivalent will apply.
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Unattended Acceptance Terminal Rules
Authorised Offline (Chip initiated transactions)

Chip initiated transactions may be approved offline, providing that the transaction
amount does not exceed the floor limit and the issuer has personalised the card to
allow this.
A floor limit of 40, or local currency equivalent, will apply to chip initiated
transactions at a UAT within Visa Europe. However, domestic variances may be
applicable.
Authorised Online for transactions in excess of the merchants floor limit
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September 2011
Telephone Service Transactions and Fulfilment
Telephone Service Transactions at Unattended Acceptance Terminals

A transaction in which a Cardholder uses a Card to purchase a telephone call as
defined under MCC4814
This includes both Magnetic Stripe and Chip transactions.
Merchants floor limits are defined per country.
RC 72 No Authorisation is now applicable for transactions above floor limit
Fulfilment
Effective from 15 October 2011, as part of a Fulfilment, an Acquirer is not
required to provide the requesting Customer or Member with a Transaction Receipt
for a transaction at an Unattended Acceptance Terminal.
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Dispute Resolution - Unattended Terminal Rules
Reason Code 96-Transaction Exceeds Limited Amount will be removed.

Reason Code 72-No Authorization will be updated such so Transactions at
UATs that do not receive the required Authorization may be charged back.
However, for magnetic stripe initiated transactions at UATs with the following
MCCs, Reason code 72 will be valid for the full amount of the transaction:
- MCC 4111 - Local and suburban commuter passenger transport including
ferries
- MCC 4112 - Passenger railways
- MCC 4131 - Bus lines
- MCC 4784 - Tolls and bridge fees
- MCC 7523 - Parking lots, parking meters and garages
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24

8
September 2011

September 2011
Mobile / Contactless and Dispute Resolution

Contactless and Mobile Acceptance Infrastructure
is growing rapidly
Over 130K
acceptance
points and
counting
3.3m Cards
20,000 Terminals
13 issuers
14m Cards
60,000 Terminals
6 issuers in 2011
Finland
Iceland
Sweden
Estonia
Latvia
Denmark
Ireland
240k Cards
2,000 Terminals
7 issuers
Netherlands
Poland
Belgium Germany
Luxembourg
Czech Rep
Slovakia
France
Switzerland
Consumer rollout
Portugal
Study phase
200k Cards
2,000 Terminals
Lithuania
UK
Pilot
Launching in
2011
Norway
Launched in
May 2011
AustriaHungary
Romania
Slovenia
Italy
Bulgaria
Spain
Mobile project
Launching in
Q2 2011
100k Cards
1,000 Terminals
4 issuers
Turkey
Greece
2.4m Cards
45,000 Terminals
11 issuers
Cyprus
Israel
28
Presentation
Identifier.28
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The Opportunity
4.8 Billion
Mobile subscribers
1.3 billion new mobile devices sold globally in 2010
1 billion+ smartphones expected in the market by 2011
3.5bn users of mobile Internet in 2015 vs. 400m today
1.5 billion unbanked mobile subscribers today vs. 2.5

billion estimated by 2012
Mobile payment estimated at $170 billion in 2010

growing to $640 billion in 20141
2.5 Billion
TVs
2 Billion Visa
Cards
1.3 Billion
Internet Users
800 Million
PCs
130 Million
iPods
Source: GSM Association; ICT Research; Morgan Stanley Global Internet Trends
Source:
GSMA (Feb 2009), ITU (2010), Global Wireless Data Market Update-2009, Chetan Sharma Consulting, March 2010, Les Echos (May 2010)
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10
September 2011
Our vision: Our consumers life is enriched by the

Visa Mobile experience
all available from any device and any operator
I always have my mobile
phone with me and I can use
it to pay contactless
everywhere. It is so fast and
easy. It also enables me to
store and use tickets that I
bought directly with my
mobile
NFC
I can now shop online wherever I

am. It is easy and secure.
Mobile Web
Person to
Sending or
person receiving money has
never been that fast
and easy.
My life is enriched by a portfolio of payments-related mobile services. I can

use my mobile to make all types of payments in a shop, at an on-line retailer
and to transfer money to another person securely and easily. AND I get
other exciting and valuable mobile servicesall delivered by someone I trust!
Consumer
Alerts in real time

I feel protected and informed as
I will know immediately if
someone is misusing my card.
Balance enquiry
I am in control of my money as I can
Balance enquiry
access my balance and track my spend
I am in control of my money as I can
quickly and easily wherever I am.
access my balance and track my spend
quickly and easily wherever I am.
Loyalty
I feel appreciated and can save
money as I receive compelling
offers that are relevant to me.
+ New
+ New
and
and
unknown
unknown
including
including
service
service
enhancements
enhancements
due
due
to to
location
location
based
based
functionality
functionality
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Our vision: Our consumers life is enriched by the

Visa Mobile experience
Consumers will have an integrated range of
payments-related services
any device
any operator
Mobile contactless payments

Account balance always available
Electronic receipts
Location based services
View and redeem all merchant offers and coupons received
View all transactions, analyse spend and verify the received
alerts
Make a Person to Person money transfer
Manage Visa Mobile Account general settings and preferences
+ New and unknown including service enhancements due to location based functionality
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September 2011
11
Whats needed for mobile contactless

For secure mobile payments, a chip or Secure Element in the device is needed an antenna is
also need for contactless payments
MMC
MMC With
NFC
Accessory or
micro SD
Secure element
embedded on the
Memory card
Secure element on the
handset
micro-SD card
with antenna
Mobile Centric
SIM Centric
Secure element is
the SIM
Micro SD
Memory Card
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Contains both SE and

antenna
33
Contactless Card High Value Payment

with online PIN
23.50
n Consumer holds
his/her phone to the
contactless symbol on
the reader
o Consumer enters PIN on the terminal
p Payment
is confirmed
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34

12
September 2011
Mobile Contactless High Value Payment

with passcode pre-entry preferred method
23.50
n Consumer presses
the Pay now button
o Consumer is prompted for his/her passcode to
p Consumer
q Payment is confirmed
authenticate, enters it and is asked to hold his/her phone to

the contactless symbol on the reader
holds his/her
phone to the
contactless
symbol on the
reader
and consumer can choose

to add information on the
transaction
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35
Mobile Contactless High Value Payment

with passcode entry
23.50
n Transaction is
o Consumer holds
initiated and consumer

is prompted to holds
his/her phone
to the contactless
symbol on the reader
his/her phone
to the contactless
symbol
on the reader
p Reader
directs
consumer to
his/her phone
q Consumer is prompted for his/her passcode

to authenticate, enters it and is asked to hold
his/her phone back to the contactless symbol on
the reader
23.50
r Consumer holds again

his/her phone
to the contactless symbol
on the reader
s Payment is confirmed and

consumer can choose to add
information on the transaction
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36

September 2011
13
Bridging technologies
iCarte Accessory
Micro-SD cards with antennas
Exclusivity for Europe

Partnership with producer of iPhone clip-on to
transform iPhones into payment devices
Target banks, key retailers and operators
Pilots to begin Q3 10; VI type and Apple
approval in progress
Exclusivity for Europe

Easy set-up and distribution based on
standard card production processes
micro-SD card makes any phone with a
memory card slot contactless-enabled
Pilots to begin end Q3 10; VI type approval in
progress
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37
Commercialisation: where we are

Today
Global trials
indicate
overwhelming
consumer
demand
Security still a
concern but
wanes with habit
and usage
Today
Consumer
behaviour
and needs
Fulfils a genuine
need
Standards and
regulation
Simple, easy to
use for mass
market
Reliable
technology
Deployment of
contactless
acceptance
infrastructure key
Launch of card
programmes to drive
usage, habit and
pave way for mobile
Technology
and
standards
Supply of mobile
phones that
consumers want
Ease of set up
Value for money

for the customer
Testing, approvals
and certification
Ecosystem distributes
value sustainably
Incumbents motivated by
new value
Unlikely to find a one

size fits all business
model for all markets
Some models exist but

agreements still not
including service enhancements due to location based functionality
finalised
Commercial
viability
+ New and unknown
Today
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14
September 2011
2.1.1 Terminal and High Value Payments

The latest Visa Europe contactless specification version 2.1.1 (released in June 2009)
provides improved functionality that ensures both the card and terminal estate is
equipped for the new contactless products launching over the next few years
2.1.1 terminals enable payment with mobile devices where a cardholders passcode can
be entered to authenticate a high-value payment
Passcode ensures global interoperability and cannot be supported on 2.0.2 terminals
Visa will introduce a mandate to ensure new terminal deployments are able to accept
mobile payments as they enter mainstream issuance over the next couple of years.
Specifically
All terminal deployments in merchants new to contactless must support the
VCPS specification version 2.1.1 (or later) from 1st June 2012.
Acquirers systems must be configured to support high value transactions from
1st October 2012.
All new terminal deployments must support the VCPS specification version
2.1.1 (or later) from 1 January 2014
All installed and activated contactless terminals must support the VCPS
specification version 2.1.1 (or later) from 1 January 2014
Visa Europe
Member use only
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as Needed
39
2.1.1 Terminal and High Value Payments

The latest Visa Europe contactless specification version 2.1.1 (released in June 2009)
provides improved functionality that ensures both the card and terminal estate is
equipped for the new contactless products launching over the next few years
2.1.1 terminals enable payment with mobile devices where a cardholders passcode can
be entered to authenticate a high-value payment
Passcode ensures global interoperability and cannot be supported on 2.0.2 terminals
Visa will introduce a mandate to ensure new terminal deployments are able to accept
mobile payments as they enter mainstream issuance over the next couple of years.
Specifically
All terminal deployments in merchants new to contactless must support the
VCPS specification version 2.1.1 (or later) from 1st June 2012.
Acquirers systems must be configured to support contactless high value
transactions from 1st October 2012.
All new terminal deployments must support the VCPS specification version
2.1.1 (or later) from 1 January 2014
All installed and activated contactless terminals must support the VCPS
specification version 2.1.1 (or later) from 1 January 2014
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40

September 2011
15
Contactless CVM-required limits

Visa Europe is enabling higher-value contactless transactions with CVM
Visa Europe-issued contactless cards can only support online-PIN as the CVM for
contactless transactions
Visa Europe-issued Mobile payment cards must support Consumer Device CVM and
may support online-PIN as CVM
The Visa Europe contactless CVM-required limit is 20.
Issuers are liable for all contactless transactions up to and including this limit
Domestic markets may agree a different contactless CVM-required limit up to a value of 35
This limit applies to all contactless transactions undertaken in the market
Domestic issuers and acquirers agree liability for domestic transactions
Acquirers accept liability on the full amount for any non-domestic card contactless noCVM transactions above 20
Mature 2.1 terminal and card environment (3+ years) will enable terminals to
recognise non-domestic cards and apply the 20 CVM-required limit to those
transactions
Contactless transactions with approved CVM have the same chargeback protection as Chip with
CVM transactions
Includes contactless transactions by non-Visa Europe cards where signature is
indicated+ New
to be
as CVM
byservice
the card
or mobile
andused
unknown
including
enhancements
due to device
location based functionality
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41
Prepaid online authorised contactless transactions

Domestic contactless no-CVM transactions must be offline authorised for debit and
credit products
Applies to both contactless cards and Mobile payment cards
Guarantees speed of transaction and interopobility
Visa Europe are allowing prepaid contactless transactions to be always-online
authorised
Applies to both contactless cards and Mobile payment cards
Will not work on Visa Transit Solutions Known Fare implementations e.g. TFL
Buses
Can work on Visa Transit Solutions Known Fare implementations e.g. TFL
Tube if ODA performed only possible for cards on VCPS 2.1
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42

16
September 2011
Contactless Low value Transactions

The small ticket program provides chargeback liability protection to acquirers for
transactions less than or equal to US $25 completed without cardholder
verification. (Domestic variances applicable)
This program ensures Acquirers are protected from lost and stolen fraud even if
PIN or signature is not obtained.
The following transaction must not be processed:
- Transactions with DCC
- Account Funding Transactions
- Cash-Back Transactions
- Manual Cash Transactions
- Quasi Cash Transactions
- Prepaid Load Transactions
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44
Contactless transactions which are below the CVM threshold can be disputed as
follows:
Description of Chargeback
Reason
Code
Time Limit
Services not Provided or Merchandise not received
30
120
Not as Described or Defective Merchandise
53
120
Declined Authorisation
71
75
No Authorisation
72
75
Late Presentment
74
120
Duplicate Processing
82
120
Credit not Processed
85
120
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September 2011
17
The following Chargeback Reason Codes do not apply to Contactless

Transactions:
- 73 Expired Card
- 77 Non - matching Account Number
- 80 Incorrect Transaction Amount
Due to the nature of contactless transactions, Chargeback Reason Codes 30
Services / Merchandise not received and RC 53 Not as Described / Defective
are very rarely disputed.
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46
Contactless Higher Value Payments
Currently, transactions which exceed the 20 maximum transaction amount for a

contactless transaction, (i.e. 20.01 and above) default to contact (Chip and PIN)
and the current existing dispute resolution rights.
Potentially, all existing chargeback rights which apply to Chip & PIN verified
transactions could be utilised.
Higher Value Payments will enable cardholders to pay for items above the
current maximum transaction amount.
Cardholders may be able to use online PIN to verify a contactless transaction. (If
applicable)
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47

18
September 2011
Contactless Higher Value Payments
Where online PIN cannot be verified, the transaction will default to contact (Chip
and PIN)
The Visa Europe Dispute Resolution team are involved in reviewing the VEOR
with contactless principles for both Low and Higher Value Payments.
These rules will be implemented and published before the introduction of HVP
acceptance in June 2012.
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48
Future Changes
Mobile Dispute Resolution Rules

Passcode is a CVM performed by the cardholder on the mobile device and
verified by the issuer offline as a valid CVM.
A Passcode is different to a PIN because a merchant or an acquirer will not
receive or handle a Passcode and it is not transmitted as part of an authorisation
request.
However, a successful validation message will be sent
For higher value payments, authenticating via the Passcode must take place.
Online PIN verification will be requested as a preferred CVM (if applicable)
No CVV data will be displayed on the mobile device.
The Dispute Resolution team are currently reviewing the mobile rules.
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49

September 2011
19
Future Changes
Transit solutions
Over 4bn is spent on bus, tube and commuter rail tickets annually in the UK
alone. Transit operators are keen to accept bank-issued cards for payment directly
on buses and at transit fare gates.
Visa Europe has developed the Visa payWave Transit Solution. These include:
- Known Fare the fare to be paid is known at the start of the journey, either
because it is flat or because the cardholder defines their destination
- Distance-based Fare final fare is determined by the distance travelled and
is not known at the start of the journey but can be calculated as the
cardholder leaves the system
- Variable Fare - the final amount to be charged is not known until after
several journeys, often not until the end of the travelling day
The Visa Europe Dispute Resolution team are involved in reviewing the VEOR
for possible transit solutions chargeback variances.
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50

20
September 2011
Fraud Trends
Visa Europe - Issuing: Fraud to Sales Rate
0.50%
0.45%
UK
0.40%
France
0.35%
0.30%
Germany
0.25%
0.20%
Sw eden
0.15%
Republic of
Ireland
0.10%
0.05%
Visa Europe
0.00%
1
Q
4
Q
3
Q
2
Q
1
Q
11
20
10
20
10
20
10
20
10
20
Visa Europe
Member use only
Information
Classification
as Needed
55
Visa Europe - Acquiring: Fraud to Sales Rate

0.30%
UK
0.25%
France
0.20%
Germany
0.15%
Sw eden
0.10%
Republic of
Ireland
0.05%
Visa Europe
0.00%
11
20
10
20
10
20
10
20
10
20
Visa Europe
Member use only
Information
Classification
as Needed
1
Q
4
Q
3
Q
2
Q
1
Q
56

September 2011
21
Top 30 Issuers
31%
All other issuers
69%
Top 30 issuers
The top 30 issuer represent 70% of

total fraud losses.
The top 30 issuers in Visa Europe
represent 69% of total fraud losses
Year ending March 2010 top 30 issuers =

542 million Euro
Our target: 40 million Euro Reduction

Our target: 40 Million Euro Reduction
Visa Europe
Member use only
Information
Classification
as Needed
57
Visa Europe Issuing: Largest Fraud Drivers:

Year Ending March 2011
CardNot
notPresent
present
Card
352m
- 54%
of total
fraud
60%
of total
fraud
Counterfeit Cards
Counterfeit cards
19% of total fraud
146m - 22% of total fraud
Visa Europe
Member use only
Information
Classification
as Needed
58

22
September 2011
Visa Europe - Issuing: Split of Fraud by Fraud

Type
200,000,000
FRD APPL
180,000,000
160,000,000
MISC
140,000,000
NRI
120,000,000
STOLEN
100,000,000
80,000,000
LOST
60,000,000
CNTRFEIT
40,000,000
20,000,000
ACCT USE
11
20
10
20
10
20
10
20
10
20
1
Q
4
Q
3
Q
2
Q
1
Q
Visa Europe
Member use only
Information
Classification
as Needed
59
Visa Europe - Issuing: Top 10 MCCs by Fraud

Type for Quarter Ending March 2011
20,000,000
STOLEN
18,000,000
NRI
16,000,000
14,000,000
MISC
12,000,000
LOST
10,000,000
8,000,000
FRD APPL
6,000,000
CNTRFEIT
4,000,000
2,000,000
ACCT USE
0
C
M
O
B
N
IO
AT
C
A
C
VI
EF
IL
S
ET
A
ET
-D
RK
Visa Europe
Member use only
Information
Classification
as Needed
&
ES
S
CE
E
IS
I
RV
SE
G
LO
ES
ES
TA
SE
R
O
ST
R
O
S
IE
ST
AL
N
O
EN
IC
C
E
UP
AN
H
AS
O
TT
O
/L
O
N
SI
/S
O
TI
/C
S
RE
IC
CK
EN
G
SI
TM
N
O
IN
AR
S
FE
O
EP
TR
UN
O
ST
ER
VE
C
O
PR
EC
EL
TR
R
G
O
EC
A
TO
C
ER
U
/A
ST
/M
ST
IN
IN
R
/T
AL
CI
AL
CI
NG
TI
ET
L
TE
NA
FI
NA
FI
60

September 2011
23
8 Strangest Fraud MCCs
Health&&Beauty
Beauty
Health
447k
281k
Opticians
780k
Wigs & Toupees

92k
Veterinary Services
97k
Dentists
443k
Fines
670k
Child Care Services

15k
Bowling Alleys
13k
Visa Europe
Member use only
Information
Classification
as Needed
61
VE Issued Card Present vs Card Not Present

Fraud
100
Millions
Euros
90
80
70
60
50
40
30
20
10
0
2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
Card Present
Card not Present
Visa Europe
Member use only
Information
Classification
as Needed
62

24
September 2011
Visa Europe Issuing CNP Fraud by ECI (% of

Total)
45%
42%
41%
Percent of Total Fraud
40%
35%
29%
30%
25%
23%
20%
16%
15%
10%
13%
12%
12%
7%
6%
5%
0%
Q1 2010
Q1 2011
MOTO ECI 1-4

Merchant Attempted VbV ECI 6
Not Defined
Fully Authenticated VbV ECI 5

Unsecure E-Com ECI 7-9
Visa Europe
Member use only
Information
Classification
as Needed
63
Cross Border vs Domestic CNP Fraud:

Visa Europe Issuing Year Ending March 2011
Vs
55% - 193m
Domestic
32% - 115m
Intra
Regional
13% - 45m
Inter
Regional
Visa Europe
Member use only
Information
Classification
as Needed
64

September 2011
25
Incorrect Fraud Reporting

Why is accurate fraud reporting important?
Visa fraud figures

Enables Visa to identify trends
Impact on fraud reduction efforts
Internal MI
Impact on chargeback possibilities
What are the fraud reporting issues?
Analysis of fraud reported as CNP

1 in 55 overall reported fraud transactions are clearly misreported
POS 90 (Full mag) listed as CNP
POS 02 (Mag stripe read) listed as CNP
POS 5 (Chip read) listed as CNP
ATM transactions listed as CNP
Visa Europe
Member use only
Information
Classification
as Needed
65
Bank A - Issuing: Top 10 MCCs by Fraud Type:

Quarter Ending March 2011
500,000
450,000
400,000
350,000
300,000
COUNTERFEIT
250,000
200,000
150,000
100,000
50,000
0
M
ST
ES
A
O
ST
S
IE
S
RE
LY
S
ET
EN
RK
PP
SU
M
IP
O
TT
O
/L
O
RM
AM
EA
W
N
SI
U
EQ
Visa Europe
Member use only
Information
Classification
as Needed
TO
/C
CK
A
RE
R
O
A
PH
ES
O
TI
EN
&
S
RE
IC
R
O
ST
E
UP
ES
/S
R
O
S
RE
ST
ES
SE
R
/T
UN
O
ST
EN
IC
O
ST
R
O
ST
S
EN
E
O
NG
TI
ET
RU
O
W
SH
D
AM
NT
TM
U
O
EO
C
IS
D
VI
AR
O
EC
EP
N
O
ER
TR
C
O
L
TE
EC
EL
R
G
66

26
September 2011
Country A - Issuing: Split of Fraud by Fraud Type

1,800,000
STOLEN
1,600,000
NRI
1,400,000
1,200,000
MISC
1,000,000
LOST
800,000
FRD APPL
600,000
CNTRFEIT
400,000
200,000
ACCT USE
11
20
10
20
10
20
10
20
10
20
09
20
09
20
09
20
1
Q
4
Q
3
Q
2
Q
1
Q
4
Q
3
Q
2
Q
Visa Europe
Member use only
Information
Classification
as Needed
67
Bank B - Issuing: Top 10 MCCs by Fraud Type:

Quarter Ending March 2011
100,000
STOLEN
90,000
NRI
80,000
70,000
MISC
60,000
LOST
50,000
40,000
FRD APPL
30,000
CNTRFEIT
20,000
10,000
ACCT USE
0
D
EP
AR
SE
C
VI
EF
RK
S
RE
-D
O
ST
ES
E
UP
ES
AN
R
O
ST
AL
N
O
/S
A
W
FT
SO
C
ER
EN
SI
R
TE
TM
PU
S
FE
O
M
O
S
ER
H
AS
O
TT
O
/L
O
T
KE
N
SI
S
RE
S
IE
ES
TO
R
O
/C
CK
O
ST
EC
EN
G
IR
ST
U
/A
ST
IN
IC
R
/T
G
O
AL
AT
PR
ER
VE
C
O
R
G
TR
NG
TI
ET
N
O
AL
CI
TR
ER
TH
O
EC
EL
NA
FI
S
ET
Visa Europe
Member use only
Information
Classification
as Needed
68

September 2011
27
Bank B - Issuing: Split of Fraud by Fraud Type

3,500,000
STOLEN
3,000,000
NRI
2,500,000
MISC
2,000,000
LOST
1,500,000
FRD APPL
1,000,000
CNTRFEIT
500,000
ACCT USE
1
Q
4
Q
3
Q
2
Q
1
Q
4
Q
3
Q
2
Q
Visa Europe
Member use only
Information
Classification
as Needed
11
20
10
20
10
20
10
20
10
20
09
20
09
20
09
20
69
Recent Fraud Attacks
Methods of Attack:
ATM skimming, card & cash trapping
Unattended terminals
Ghost terminals
Refund fraud
Visa Europe
Member use only
Information
Classification
as Needed
70

28
September 2011
ATM Skimming, Card & Cash Trapping

Skimming Still represents the majority of ATM fraud
Card trapping Lebanese loop, shoulder surfing or camera to view PIN, then
retrieve card
- In many recent cases a mobile phone camera has been used to record the
PIN
Cash trapping Withdrawal as normal but cash ejection is prevented due to
device/sleeve placed inside ATM
- Many reports this year of cash trapping in the UK. EAST has stated it is
becoming more prevalent across Europe
- Anti cash trap kit deployments have been effective but have moved the
problem elsewhere
Anti fraud techniques ASDs, cameras, law enforcement liaison, cardholder
education (e.g. Cover your PIN image, cash machine fraud awareness day,
report devices not working/dispensing cash)
Visa Europe
Member use only
Information
Classification
as Needed
71
Unattended Terminal Fraud
Unattended terminals are all vulnerable to skimming and compromises

at unattended terminals have increased across Europe:
- Train tickets/stations particularly targeted in UK and Nordics
- Petrol stations
Anti fraud techniques As with ATMs, installing ASDs and cardholder
awareness are important
Visa Europe
Member use only
Information
Classification
as Needed
72

September 2011
29
Ghost Terminals
What?
Fake terminals sometimes
replacing genuine devices
Where?
Sweden, possibly
Netherlands and UK
Low value outlets: Coffee
shops / festivals / taxis
Detection?
Difficult to identify CPP
Cardholder reports
transactions not on card /
Police interception of fake
terminals
Visa Europe
Member use only
Information
Classification
as Needed
73
Refund Fraud
Collusive merchants issuing refunds with no corresponding authorisation OR

Criminals obtain merchant credentials and submit refunds to the acquirers
system which are then processed
Issuer 1st party / mule / ACTO account used to access refund prior to detection
Pressure on issuer to release funds
Acquirers and Issuers should have appropriate measures in place to identify
refunds without a corresponding authorisation
Visa Europe
Member use only
Information
Classification
as Needed
74

30
September 2011
Evolving Risks
The Threat is a constant we have to live with
Visa Europe
Member use only
Information
Classification
as Needed
75
A Few Recent Events
A few news images from the

web, highlighting the coverage
such stories are getting these
days very different from the
days when such stories were
relegated to niche techy
reports
Visa Europe
Member use only
Information
Classification
as Needed
76

September 2011
31
And Yet More Of The Same
Visa Europe
Member use only
Information
Classification
as Needed
77
Fraud Solutions
There is no single solution, its a combination of activities:

KYC - know your customer
Secure card data and card delivery
Payment Card Industry Data Security Standards (PCI DSS)
Authorisation strategies and detection systems
Sharing Best practices
Merchant and cardholder education
Chip technology
Verified by Visa
Moving from static to dynamic authentication
Scheme fraud control programmes
Visa Europe
Member use only
Information
Classification
as Needed
78

32
September 2011
Visa Europe EMV Rollout Levels
341 millions Visa chip cards at end Q1 2011:

Represents 80% of the issuing portfolio
Visa transactions originating from EMV devices May 2011:
84.6% of intra-regional cross-border POS CEV
- 77% of POS CEV is chip-to-chip
98% of intra-regional cross-border ATM CEV
- 93.1% of ATM CEV is chip-to-chip
Visa Europe
Member use only
Information
Classification
as Needed
79
VbV Rollout in Visa Europe
130 million+ Visa cards enrolled within Visa Europe

Visa Europe VbV penetration - 47% of all e-Commerce transactions, of
which 88% fully authenticated
ECI5 Fraud to Sales ratio = 9bps v. 33bps ECI6-9
VbV delivered estimated fraud savings of 225m for members in
2010
Visa Europe
Member use only
Information
Classification
as Needed
80

September 2011
33
Summary
As an industry we are up against sophisticated organisations

Losses are coming down but we must not be complacent due the
migratory and dynamic nature of Fraud
Effective tools and solutions are available to help
Innovation is vital too but must be undertaken in a considered manner
Keep on doing what we are doing as its working
Visa Europe
Member use only
Information
Classification
as Needed
81

34
September 2011
VbV and RC 30
Verified By Visa (VbV) liability shift
RC 30 and ECI 5 and 6
Visa Europe are aware of several Issuers attempting to avoid the VbV liability
shift.
Most transactions flagged with ECI 5 or 6 are exempt from fraud chargebacks.
- (Except in cases where the transaction was initiated on a International
Commercial Card, Anonymous prepaid card or took place in a New Channel
(e.g. non-HTML mobile) or with a merchant participating on the Global
Merchant Chargeback Monitoring Programme (GMCMP).
In an attempt to by-pass the VbV liability shift, Issuers are attempting to
chargeback transactions which have been VbV authenticated under the
following non-fraud reason codes:
RC 30 Services Not Provided or Merchandise Not Received
RC 90 Non-Receipt of Cash or Load Transaction Value at ATM or Load
Device
Visa Europe
Member use only
Information
Classification
as Needed
83
VBV liability shift RC 30 and ECI 5 and 6
Issuers must not use RC 30 and RC 90 when the transaction has

been identified as fraud in an attempt to bypass the VbV liability
shift
Benefits of VbV:
Subscribing to VbV means that Merchants are protected against
fraudulent transactions
The integrity of the Verified by Visa brand as a leading CNP prevention
tool
Issuers should encourage their Cardholders to sign up to the service.
(If applicable)
Visa Europe
Member use only
Information
Classification
as Needed
84

September 2011
35
Acquirer Action
Acquirers can attempt to invalidate at Representment by evidencing
Transactions were asserted to be fraudulent by the cardholder
Transaction has been fraud reported (TC40).
Acquirers should also provide documentation (whenever possible) to prove that
the Cardholder received the purchased services/merchandise.
Visa Europe
Member use only
Information
Classification
as Needed
85

Visa Action
If Issuers continue to avoid the VbV liability shift , Visa Europe could look to
monitor all chargebacks affected
Chargebacks to be monitored and Visa could look at other indicators to
determine if an Issuer has bi-passed the liability shift including:
- TC40
- Card Account Number Exception file listing
- Check for other fraud chargebacks around the chargeback CPD
Work with Issuers directly to try and reduce the number of chargebacks under
RC 30 which are not Services not rendered or merchandise not receive.
Compliance programme
Members may be subject to fines if in breach of a compliance programme.
Visa Europe
Member use only
Information
Classification
as Needed
86

36
September 2011
Questions to ask
What to ask if no Fraud chargeback rights
Is the transaction amount above floor limit? If so, has it been authorised?
may have chargeback right under RC72 (No Authorisation).
Has the card expired? May have chargeback right under RC73 (Expired
Card).
Has the transaction been processed within the required time limits? May
have chargeback right under RC74 (Late Presentment).
Action a Retrieval Request to check the transaction receipt for signature

and if legible.
If account number or amount is illegible may have chargeback right

under RC60 (Illegible Fulfilment).
Visa Europe
Tesco
2011 Dispute Resolution Forum
Visa Europe
Member use only
Information
Classification
as Needed
87

September 2011
37
Fraud and VROL

VROL and fraud reporting
VROL can be used to:
Report fraud
Review and amend fraud reports (Issuers only)
Exception File Listing
Review and amend Exception File entries
Visa Europe
Member use only
Information
Classification
as Needed
89
The Fraud Reporting Wizard

From the Transaction Inquiry results screen, select a case and create a
chargeback questionnaire.
Visa Europe
Member use only
Information
Classification
as Needed
90

38
September 2011

Select Guide Me to open the Fraud Reporting Wizard
Visa Europe
Member use only
Information
Classification
as Needed
91

Select the appropriate topic and click on Next. Repeat until the Fraud Type has
been determined by the wizard.
Visa Europe
Member use only
Information
Classification
as Needed
92

September 2011
39

The Fraud Type is included in the questionnaire.
Visa Europe
Member use only
Information
Classification
as Needed
93
Visa Europe
Member use only
Information
Classification
as Needed
95
The Past

40
September 2011
The Past
Visa Europe
Member use only
Information
Classification
as Needed
96
Visa Europe
Member use only
Information
Classification
as Needed
97
The Present

September 2011
41
The Future
is to further improve our Dispute Resolution system.

Constant improvements
Acknowledge new technologies and processes
Easier handling of Dispute Resolution cases.
Visa Europe
Member use only
Information
Classification
as Needed
98
Benefits of VROL
VROL helps you to keep everything related to your dispute in one place under
one unique case number.
It is easy to follow a dispute from the start to the end.
Transaction information can be easily accessed using Transaction Inquiry.
Fraud reporting and Exception File listing are easier.
Visa Europe
Member use only
Information
Classification
as Needed
99

42
September 2011
Current improvements
The extensive data available in Visa Transaction Research Service (VTRS) will
gradually be integrated into the VROLs databases which means that the same
data will be available in Transaction Inquiry (TI).
Questionnaires are being amended to reflect changes to the Visa Europe
Operating Regulations.
Using the Multi-match wizard, users are now able to create several
questionnaires at once by selecting multiple advices in the All Unresolved
CB/Repre Doc Advices queues.
Visa Europe
Member use only
Information
Classification
as Needed
100
The Good Faith Resolution Report (ROL-175)

This report provides members and Visa Europe with an overview of Good Faith
attempts that have been raised.
With this report Visa Europe is monitoring the Good Faith traffic to see which of
them are related to the Payment Services Directive (PSD).
Please ensure that you use the two buttons within the Good Faith questionnaire,
when the case is out of time and related to PSD.
Visa Europe
Member use only
Information
Classification
as Needed
101

September 2011
43
The Good Faith Resolution Report (ROL-175)
Visa Europe
Member use only
Information
Classification
as Needed
102

44
September 2011
London 2012 Olympic Disputes

London 2012 Olympic Tickets
The London Organizing Committee of the Olympic and Paralympic Games

(LOCOG) is responsible for preparing and staging the 2012 Games and is the
sole provider of official Olympic tickets for the 2012 games.
LOCOG has been alerted to the fact that certain companies/individuals are
fraudulently claiming to be associated with London 2012 and are claiming to
provide official tickets through websites that are not associated with LOCOG.
The LOCOG website may assist cardholders who may be concerned that they
have purchased tickets through an unofficial source.
Visa Europe
Member use only
Information
Classification
as Needed
134

Ticketing Website Checker
http://www.london2012.com/about-this-website/ticketing-website-checker.php
This website will provide information on:

- Known unauthorised websites claiming to offer London 2012 tickets
- Official London 2012 ticket sites
Authorised Ticket Resellers (ATRs) have been granted the right actively to
promote and sell tickets in the country of the European National Olympic
Committee which appointed them.
Visa Europe
Member use only
Information
Classification
as Needed
135

September 2011
45
London 2012 Cardholders FAQs
Who should a Cardholder contact if I have a query about a purchase?

-
If you have a query about an item you have purchased or wish to purchase,
please contact a the LOCOG customer service team either by email:
london2012service@shop.london2012.com or telephone 0845 605 2012
(UK) or +44 170 486 2012 (International)
How will I be able to pay ?
Visa (credit, debit and prepaid) is the only payment card method accepted
at The London 2012 Olympic Games.
How will a Cardholder know if something is an official London 2012 product?
If a product is genuine London 2012 Games merchandise it will feature a

numbered holographic version of the official London 2012 logo as part of
the packaging or labelling. This is your guarantee of authenticity.
For further information, please refer to www.london2012.com
Visa Europe
Member use only
Information
Classification
as Needed
136
Services not rendered - Reason code 30

The Reason Code 30 chargeback right covers several situations including nonreceipt of tickets and the supply of unofficial tickets by the merchant which fail
to provide entry to the venue/event.
Chargebacks for future dated Olympic events are only valid under RC 30 when
LOCOG has identified the merchant as an unofficial provider
Visa Europe
Member use only
Information
Classification
as Needed
137

46
September 2011
Credit not processed - Reason code 85

The Reason Code 85 chargeback may be used when a credit voucher has not
yet been posted to the cardholders account. Issuers must wait 15 days from
the date on the credit voucher prior to exercising this chargeback.
A cardholder may also have a right to cancel tickets purchased from an
unofficial ticket merchant if the cancellation policy was not disclosed to the
cardholder at the time of the transaction.
Not as described - Reason code 53

The Reason Code 53 chargeback may be used when the cardholder receives
tickets for an event, date or venue which differs from that originally agreed with
the merchant at the time of the transaction.
Visa Europe
Member use only
Information
Classification
as Needed
138

September 2011
47
Compliance Best Practices

What is compliance?
Operating
Regulation is broken
Financial loss
No Chargeback rights
Compliance case
Visa Europe
Member use only
Information
Classification
as Needed
143 143
The definition of Compliance
A process whereby disputes that arise from violations of any rules governing a
Transaction (when the requesting Customer or Member can certify that a
financial loss has occurred or will occur for a specific amount), and no
Chargeback right is available, are determined.*
*Visa Europe Operating Regulations Volumes I & II, Defined Terms.
Visa Europe
Member use only
Information
Classification
as Needed
144

48
September 2011
The definition of financial loss
A financial loss can be defined as A debit or loss of funds suffered by a

member, cardholder or merchant which has occurred due to a violation of the
Visa Europe Operating Regulations
A member may choose to evidence a financial loss by providing proof of the
debit transaction from the cardholder or merchants account; or evidence that
the member can not recover the funds from their cardholder or merchant.
- For example; Cardholder bank statement.
Visa Europe
Member use only
Information
Classification
as Needed
145
Compliance facts
To file a Compliance, a member must:
File a Compliance case using Visa Resolve Online (VROL)
Attempt a Pre-Compliance. This is mandatory No direct Compliance
Potentially every rule within the V.E.O.R. can result in a Compliance case.
Visa Europe
Member use only
Information
Classification
as Needed
146

September 2011
49
Compliance Best practice
A member is required to:

Cite the rule violation within the precompliance questionnaire
Evidence its financial loss
State how that rule was violated, thereby causing a financial loss
For cases that relate to fraudulent activity, supporting documentation is required.
(Member letter: VE 48/09)
Visa Europe
Member use only
Information
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as Needed
147
Time limits
A compliance must be filed within 90 calendar days of either:
Central Processing Date of the transaction (CPD).

Violation Date.
Date of Discovery.
A compliance can be filed up to 90 calendar days from the date either the Issuer or
Acquirer discovered the violation; or from when the Issuer or Acquirer received
notification from their Cardholder / Merchant that a violation may have occurred.
(Not to exceed 2 years from the transaction CPD)
Visa Europe
Member use only
Information
Classification
as Needed
148

50
September 2011
Delayed or Amended
Charges
Delayed or Amended Charges - Best practice
Section 5.3.B of the V.E.O.R., Volume I

The following items are applicable to delayed or amended charges:
Consent to be liable.
Estimate of the charges for damages
Time frame for the cardholder to be advised of the delayed or amended charge
Visa Europe
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150

September 2011
51
Consent to be liable.
A merchant must evidence within the signature area that the cardholder has
consented to be liable for damage, parking and traffic violations.
For damages this must also mention that the charge shall be taken specifically
from the cardholders Visa card.
If the consent to be liable is not on the car rental agreement or hotel folio, an
Acquirer may lose the compliance.
Visa Europe
Member use only
Information
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as Needed
151
Estimate of the charges for damages

A merchant must provide an estimate (clearly highlighted in English) which is
dated before the disputed transaction and has been sent to the cardholder
before the charge is processed.
Providing an invoice from a garage which has already repaired the vehicle is
insufficient
Failure to provide a valid estimate would indicate that the cardholder has never
been informed about the cost of the damages and has not had a chance to
agree to them.
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52
September 2011
Time frame for the cardholder to be advised of the delayed or

amended charge
Section 5.3.B.2.c of the VEOR Vol I states the cardholder must be informed
about the delayed or amended charge within 10 calendar days of the return
date of the rented vehicle or check out from the hotel.
In addition, the car rental company must wait 20 business days from the date
of the confirmation letter provided to the cardholder for a response, before
processing a delayed or amended charge for damages.
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Chargeback Reduction
Service Return

September 2011
53
Chargeback Reduction Service Return

- Best practice
Section 7.10.A.1 - V.E.O.R., Volume I.
The following items are applicable to CRS returns:
The requesting member must prove that the initial Chargeback conditions have
been met.
The chargeback must have been returned by Visa systems
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- Best practice
The requesting member must prove that the initial Chargeback
conditions have been met.
This must include any supporting documentation
The disputed transaction receipt and proof that the transaction received
authorization must be provided.
Proof of a valid authorisation may be provided as either a VROL Transaction
Inquiry (TI) log
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54
September 2011

- Best practice
The chargeback must have been returned by Visa systems
In order to file a Compliance under this section, evidence of the return must be
provided.
The reject must be coming from Visa. Internal edits preventing the Chargeback to
be submitted are not valid for use with this section.
When unsure if the Chargeback has been returned, please contact
customersupport@visa.com to obtain the required details.
These details must be attached to the Pre-Compliance case.
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Credit transaction receipt

September 2011
55
Credit Transaction Receipt

- Best practices
Section 5.3.D.2 - the V.E.O.R., Volume I.
Definition A merchant may prepare a Credit Transaction Receipt when a valid
Transaction Receipt was previously processed.
An Issuer may utilise this right if a credit was applied to a Visa card with no
previous debit and the cardholder is unwilling to return the funds, causing a
financial loss (Run-away spender)
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Credit Transaction Receipt

- Best practices
The filing member is required to provide proof of both the credit (TC06) and the
debit (TC05)
An Issuer must also evidence its financial loss by providing proof that the
cardholder withdrew the funds.
For example, to evidence this; an Issuer may choose to provide a copy of the
cardholders statement.
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56
September 2011
Other Examples of Dispute Reasons for

Compliance
Split Transaction Section 3.4.A.4 Volume II - VEOR

Unauthorised Signature Section 3.4.A.3 Volume II - VEOR
ECI 6 transaction Section 3.4.C Volume II - VEOR
Hotel Reservation Service Section 3.4.A.2 Volume II - VEOR
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Further Information
As a reference and guidance on how to handle disputes, you may also look at
the Visa Europe Dispute Resolution FAQs & Case Studies available as the
following address:
Visa Online => Start => Customer Services = > Visa Resolve Online => FAQs
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September 2011
57
Dispute Resolution Forum Minutes

Introduction
Michelle Harvey (MH) opened with an introduction and walk through the agenda for the day.
Trends
Juan Gonzalez (JG) opened the day with presentation on volumes and trends over the last two
years. JG highlighted the top five chargebacks and asked why there was such a low
representment ratio on RC83. JG verified one of the reasons was due to Acquirers not going to
their merchants and requesting details.
Action: Dispute Resolution - Best Practice document.
JG mentioned that it is the first time that RC72 has appeared in the top five reason codes
chargebacks due to the introduction of a new condition where incorrect details were put in the
auth request.
Case volumes are falling but the values are increasing.
JG advised that the Visa Europe Committee provides a rule on any case where a Visa Europe
Member is involved. Visa Europe has regular meetings with Visa Inc to ensure all rulings are
consistent.
It is the first time that RC85 has appeared in the top five reason codes for filing due to the
introduction of a new condition.
JG asked why members think that Issuers are wining more cases answer given possibly due
to liability shift.
JG highlighted that the Committee are working to maintain a good service level on closing
cases; currently the average days to close cases is under 60 days, unlike in 2007-2008 where
the average day was around 355 days.UAT Rule changes
Richard Waller (RW) presented rule changes to transactions at Cardholder Activated
Terminals (CAT A, B and C). CAT A, B and C will no longer be the terminology; this will now
only be referred to as Unattended Acceptance Terminals (UAT), this change comes into affect
October 2011. RW advised members to refer to member letter VE 28/11.
RW highlighted that RC96 will no longer exist as these transactions are now monitored by floor
limits and not an exceeded amount; however members will instead have chargeback right
under RC72.

58
September 2011
Questions and Answers

Question:
Answer:
Question:
Answer:
Authorisation and clearing records sometimes differ, which data the

Committee will use for rulings.
Authorisation should prevail, when dispute is about authorisation.
Electron cards transaction received without authorisation. [this isnt a
question, what did they ask?]
Should be authorised, if take it without getting authorisation then maybe in
violation of service code so Issuer maybe have chargeback right. If relates to a
specific Acquirer, we can deal with later but Issuer will have a chargeback
right. We cannot mandate the merchant.
Question:
Answer:
Will there be any change to RC81 with magnetic stripe telephone transactions.
Chgbk right will still remain only definition changes.
Question:
Answer:
Clarification on if amount exceeds 40euro.

If the amount is exceeded, if chip transaction can only chargeback difference,
if magnetic stripe chargeback is full amount.
Action: Dispute Resolution - Best Practice document
Contactless and Mobile

Mark Austin (MA) and Chris Jones (CJ) presented on Contactless and Visa Mobile.
MA highlighted that the Operating Regulations are still in final stage of development, however
Contactless and Mobile is an area that is growing quite fast.
Short video on contactless was shared showing a real contactless card being used in different
markets.
3000 new contactless points are being installed for the Olympics. Every bus in London (8000)
will have contactless acceptance.
Faster for merchants, mobile payments will be key in the way payments are made in the future.
MA highlighted an interesting fact Mobile: high growth is expected in the next few years.
Stats show that there are more mobile phones in the world than toothbrushes!
There is an overwhelming consumer demand for contactless. There are consumer concerns
over security but this lowers with usage. Visa Europe expects more take-up from large retailers
over the next 12 months. Members advised to keep in contact with Visa Europe and
Relationship Manager.
MA shared information about the new Visa Europe initiative, Visa Mobile P2P. This will allow
cardholders to send money to another Visa Cardholder from their mobile phone.

September 2011
59
CJ advised on what was changing on contactless cards. These include:
To support mobile payments, contactless cards can pay for higher value items with
online pin. From Merchant perspective this will widen what contactless can be used
for. Consumer perspective makes it little bit easier.
Different markets could have different limits, European limit is 20 euros. For markets
that set their own limits, merchants are aware that they are liable to anything over this
amount e.g. Italy limit 25 euros so are liable for 5 euros.
CJ showed members a demonstration on the scheduled break, which was well received.
Contactless Dispute Resolution Rules

RW presented contactless dispute resolution rules, how they exist and future changes.
Higher value payments should be in place middle next year. Currently looking at dispute rights
and limitations. Still defining rights but will be in member letter due in next six months.

Question:
Answer:
What is rational of exclusion of DCC?

Terminal cannot determine until after the amount that it is a foreign currency
card, so cannot offer DCC.
Question:
Answer:
Can contactless be used for ATM transactions?

Cannot be done as needs a PIN.
Question:
Variable fare amount will not be known until end of day, what happens if goes
for authorisation and Issuer declines?
Merchant will have to try to resolve with cardholder directly. MA advised that,
if declined, may be allowed to submit transaction but put cardholder on deny
list, so will not be able to use transit service/buses etc again. Complex rules,
mostly will be known fare. Audit will be in place to ensure there is not a large
number of declined trans.
Answer:
Question:
Answer:
Variable fare puts merchant at risk at the end

May be small amount, average fare amount is 1.40. Attractive to merchant
as do not have to use cash.
Question:
Answer:
Is the passcode transmitted as part of validation?

Terminal only knows if passcode is correct or not, validation will be yes
equals correct. Field will be in BASE I message to show yes or no response.
Question:
Is the merchant obliged to fulfil an authorisation?
Answer:
Yes.
Question:
If cardholder only says they only made half the journeys and fares, what are
the rights?
May be a dispute right, but would need proof that amount charged is different
to amount that it should be. It will be determined within next couple of
months on how chargeback rights are applicable.
Answer:

60
September 2011
CNP Fraud Trends and Current Threats

Robin Reichwald (RR) discussed current fraud trends. Fraud rate is lowest it has been.
Germany was slow in VBV and EMV which gave big increase in fraud rate. Worked with them
to bring down these rates, which has been a good success.
Republic of Ireland was reducing fraud rates but is starting to go up again. Any increase is
usually centred on unsecured e-commerce area, mostly around gambling industry.
Card not present vs. card present. Over half losses for Issuers are card not present and 22%
counterfeit. This is where main focus is on reducing fraud. Large reduction is in counterfeit
year on year, due to EMV migration in Visa Europe.
ATM is the largest fraud mainly on counterfeit and stolen, followed by cash advances. Cash
advances are predominantly UK problem. Been working closely with UK members to control
this within UK.
Card present fraud is decreasing; card not present is now main focus. More controls now on ecommerce which has meant increases in traditional mail order/telephone order transactions.
55% of card not present fraud is domestic. 32% is intra-regional, 87% is contained within Visa
Europe. This means we should be able to have an impact on this fraud.
However, all figures are based on fraud reporting figures reported by our Members. Any new
trends are based on the accuracy of this data. If not being reported accurately, then the way we
work and assist members will not be the most beneficial. RR stressed the importance of correct
fraud reporting.
RR discussed the different types of fraud attacks that are being seen.
Where we are going in terms of fraud big fraud cases are now in the media e.g. data hacking.
There is no one answer to fix problems. Most important is to know your customer. Ensure
secure card data and cards transported securely. Adapt/flexibility in strategies as fraud trends
develop. We have programmes to look at situations to help mitigate risks.
We have effective tools, always looking to develop and come up with new ways to resolve
fraud losses. We will continue to work with members to bring down the fraud.
Verified by Visa Liability shift and Fraud Best Practices

JG advised that there are lots of requests from Acquirers for assistance where Issuer is using
RC30 to avoid fraud chargeback for ECI 6 transaction. JG confirmed that Issuer should not
chargeback under RC30 or RC90 to bypass rules for VBV fraud.
If evidence in case that transaction is fraud, e.g. TC40 reported, Acquirer can invalidate for this
reason by evidencing this. Also encourage Acquirer to show that merchandise or service was
provided to the customer.
JG advised that Visa is now analysing RC30 for cases relating to ECI 6 transactions and
working with Acquirers to try to stop this. Also, Visa may consider as a final action, the
implementation of a compliance programme to fine Members if a violation occurred.
September 2011
61
JG asked what are Acquirers seeing, is this impacting your workloads, are volumes becoming
higher answer volumes are getting higher or last couple of years.
JG advised if the Acquirer has evidence of TC40, this would remedy the chargeback.
If Members see abuse from Issuers, please contact Dispute Resolution with details.
VROL and Fraud Reporting

Ben Beer (BB) spoke about VROL and how to fraud report. VROL can be used to fraud report.
BB talked through slides on how to do this. If use of the Wizard is minimising incorrect fraud
reporting.
BB then spoke on the benefits of VROL and got a round of applause as he spoke about the multi
match system. Members seemed to be unaware that this was already in place.
Questions were taken within the break.
London 2012 and Dispute Resolution.

Presentation given by Sandy Flakelar (SF) from Partnership Marketing on London 2012 and
Visa. Apologises from Colin Blount.
Short video shown on Olympic Games to show emotion in the games.
Attention of the world will be on London. There will be one payment card, which is massive
business opportunity. People will only be able to use a Visa card in the Olympic Games.
Olympics are one of the most valuable brands in the world and there is a real benefit in
association.
SF spoke about Team 2012/Team Visa./innovations/promotions and how Visa works with
Members.
He also spoke about the mascots and told of the stories behind them.
Preparing for 2012

Richard Alexander (GB Hockey Player) answered questions from RW on his experience of
playing hockey and being part of Team 2012.
RW spoke about his experience on being a Volunteer for the Olympic Games.

RW spoke about what we expect to see in regards to Olympic tickets in Dispute Resolution. He
advised that LOCOG can confirm which companies are unofficial sources and as best practise
to check there before disputing.
RW talked about RC30/RC85 and RC53. These are guidance only and Issuers should check
chargeback rights.

62
September 2011
DAY 2
Michelle Harvey gave overview of the agenda for the day
BB gave clarifications on multi-wizard from the previous day, confirming it came into use from
April 11 but not for Bulk Members
Compliance Best Practice.

BB gave presentation on compliance.

Question:
Answer:
Is it new that Issuer cannot go directly for compliance?

Pre-compliance must be raised before compliance.
Question:
Can stats be provided on success rate when using date of discovery over
violation date?
No.
Answer:
MH advised that must evidence date of discovery. We will look to put together best practice
guide on what can be used as date of discovery if this would be useful.
Reminder given that cardholder letter does not need to be signed for pre-compliances unless
fraud.
Delayed/Amended Charges.
BB spoke about delayed or amended transactions.

Question:
Answer:
Does the rental agreement have to specify Visa Card?

If damages yes, if other rental charges then can state credit card.
Question:
Customer returns car damaged and then returns home. Merchant has to send
letter about delayed charge, does cardholder have to acknowledge the letter
before merchant can process charge?
No.
Answer:
Question:
Answer:
Question:
Answer:
Failure to provide a valid estimate would indicate that the cardholder has
never been informed about the cost of the damages and has not had a chance
to agree to them, does this mean that cardholder has to agree to them?. What
if they refuse as can get a cheaper quote?
Merchant has to get money via other means.
Parking fees. Can car rental merchant send own violation report or must it be
official notification?
Must send the official notification.

September 2011
63
CRS Compliance
BB spoke about chargeback reduction service return.

Question:
Answer:
Question:
Answer:
Question:
Answer:
Why do we still have to make a chargeback when we know that it will be

rejected?
It is not known for sure that it will be rejected and this compliance only applies
if the chargeback is returned.
All the transaction data is seen if a transaction inquiry is made so its easier for
an Issuer to do a pre-compliance. Actioning a chargeback first takes time and
costs.
The chargeback could be correctly rejected, the violation only occurs when
chargeback is rejected. Issuers could also be looking at the wrong compliance,
may have chargeback right or difference compliance.
If there is a chargeback right does this have to be used first.
Yes, a chargeback must be actioned if there is a right.
Credit Transaction Receipt Compliance

BB spoke about best practices for credit transaction receipt compliance.
Breakout Sessions
Members were split into groups to attend the three different breakout sessions.
Forum Close
MH closed the forum and thanked members for their attendance and input.

64
September 2011

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Dispute Resolution Contact Details

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Dispute Resolution Statistics

Visa Europe Dispute Resolution Forum

Top 5 Chargebacks RC % vs. Representments

% Repr. Vs Chbks per RC

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Visa Europe Cases Filed

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Visa Inc Cases Filed

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Visa Europe Filed Case Amounts

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Visa Inc Filed Case Amounts

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Visa Europe Top 5 Reason Codes Filed

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Issuer Wins Acquirer Wins

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Issuer Wins Acquirer Wins

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Visa Europe Average Days to Close Cases

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Dispute Resolution Rule Changes

New Unattended Acceptance Terminals Rules

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Unattended Acceptance Terminal Rules

Unattended Acceptance Terminal Rules

Authorised Offline (Chip initiated transactions)

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Telephone Service Transactions and Fulfilment

Telephone Service Transactions at Unattended Acceptance Terminals

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Dispute Resolution - Unattended Terminal Rules

Reason Code 96-Transaction Exceeds Limited Amount will be removed.

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Mobile / Contactless and Dispute Resolution

1.3 billion new mobile devices sold globally in 2010

1 billion+ smartphones expected in the market by 2011

3.5bn users of mobile Internet in 2015 vs. 400m today

1.5 billion unbanked mobile subscribers today vs. 2.5

Mobile payment estimated at $170 billion in 2010

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Our vision: Our consumers life is enriched by the

I can now shop online wherever I

My life is enriched by a portfolio of payments-related mobile services. I can

Alerts in real time

Our vision: Our consumers life is enriched by the

Mobile contactless payments

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