How does the Visa Claims Resolution (VCR) work?

Visa uses two distinct models to manage chargebacks based on the dispute reason code: allocation and collaboration. Understanding which model applies helps you respond effectively.

Allocation Model

Used primarily for fraud and authorization-related disputes, this model relies on Visa’s internal data and automated logic to assign liability.

• Liability is determined automatically, often without merchant input.
• If you're held liable, you may challenge the decision by initiating pre-arbitration, but response time is limited.
• A chargeback will only be reversed if the opposing party accepts liability after reviewing your documentation.

To avoid arbitration fees ($575 filing review + $200 technical fees) when challenging a dispute, ensure all Allocation conditions are fully addressed before escalating.

Collaboration Model

This is Visa’s traditional, evidence-based dispute process, typically used for consumer complaints and processing errors.

• Merchants and cardholders exchange documentation to support their claims.  
• If your evidence disproves the cardholder’s claim, the chargeback may be reversed.
• If unresolved, the case can escalate to pre-arbitration and eventually arbitration, where Visa makes the final decision.