Every year, issuers and merchants deal with close to $31 billion in chargebacks and fraud disputes. But the real costs are actually much greater.
Card chargebacks have become a growing issue for credit unions as members transact across multiple channels and fraudulent behavior has become more difficult to detect. To make matters worse, the process for processing and resolving disputes is riddled with inefficiencies, negatively impacting both call center and service representatives and then members they are trying to help. Our Member Journey research revealed card disputes to be a particularly sensitive point among members, leading to higher feelings of stress and anxiety. And with members putting a premium on their service experience, credit unions need to ensure they’re handling chargebacks in an efficient manner.
Asking the Right Questions Up Front
Thanks to feedback from our Co-Creation Councils in June of last year, improving the disputes and chargebacks experience has become a top priority for our innovation roadmap.
Following the June meeting, CO-OP took immediate action to begin to improve this complex process for both the near and long term. As a first step, Lori Kastrick came on board as our new vice president of industry services and back office services and has since built a Transformation Team dedicated to tackling the complexities of the disputes and chargebacks process.
The first area the team began to tackle was the chargeback intake form. Chargeback requests require a lot of information to process and there is an added time and monetary cost associated with additional follow up and information passing between call center agents and the member. For issuers processing hundreds or even thousands of dispute claims every month, this process becomes overwhelming very quickly.
To that end, the team immediately collected all the different intake forms used with our client credit unions and revamped them into a single, comprehensive form that guides agents through the intake process in a streamlined, expedited manner.
The implementation of one consolidated intake form at our Contact Centers has helped reduce the number of callbacks to members by 80 percent and is helping agents route calls much faster as well, which has shaved two minutes off the time of an average call.
Faster Processing and Dispute Resolution
To add another layer of complexity to the chargebacks issue, last year Visa introduced a new global dispute process called Visa Claims Resolution (VCR) designed to help streamline the process for settling disputes across issuers and merchants. While this is a welcome development for the industry, it will be important for credit unions to stay ahead of the issuer requirements laid out in the 800 page resolution guide, both from a member experience and regulatory standpoint.
In response, CO-OP is focused on building an enterprise digital-first solution across all of our different channels. Standardization will be critical to ensuring a uniform experience, regardless of where the dispute or chargeback occurred.
Kastrick and her team have engaged a third party to advise on the development of this new Enterprise Chargebacks system, ensuring that it maps out and meets all of the requirements of our credit unions.
“We are designing an enterprise solution that addresses all of their concerns with an end result that will make employees, clients and members happy when we roll it out,” said Kastrick.
Partnering on Agile Development
Implementing a solution of this size and scale will require agility as we move forward with development. This is where feedback from credit unions will be critical to continuing to improve designs and drive the direction of the new chargebacks system.
“As we continue to go through the proof of concept and roll it out, we’ll continue to evaluate to ensure that it is still meeting the needs our credit unions have today, and not just assuming that what we were doing yesterday is still going to be relevant for the future,” said Orlando Huerta, CO-OP Contact Center Director.
For instance, at a recent Co-Creation Council meeting, the team collected feedback on the type of reporting credit unions would like to see from a chargebacks solution which will go directly into solutions design process.
“We want to provide both our clients, as well as the CO-OP management, visibility into the work that we do,” adds Kastrick. “We’ve heard them loud and clear, and we are on a path to create an enterprise solution that we will be delivering in 2019 and into 2020 as well.”
Whether its chargebacks, disputes or general member service, CO-OP’s Contact Center ensures that your members get the help they need whenever, wherever they need it – without the operational complexity and expense of staffing your own Call Center. Learn more.