Automation Proves Key For Dispute Resolution Ease

If consumers think disputing credit or debit card claims is confusing, they should view it from the processing end.

Dispute resolution is one of the most complex and time-consuming tasks any issuer, acquirer or processor must deal with, and has the potential to bog down businesses through loss of revenue and consumer dissatisfaction. Tasks such as retrievals, fulfillments, chargebacks, arbitration and adjustments must all be fulfilled in an organized and timely manner, and the likelihood and risks associated with human error are high.

According to Baldwin Hackett & Meeks, Inc. (BHMI), an enterprise software engineering company with extensive experience in the payments industry, that’s why automation is key to dispute resolution success.

PYMNTS.com spoke with BHMI about the dispute resolution process, their Concourse – Disputes software product, and how technological advancements can significantly advance the dispute resolution industry.

“Due to the complexity and time-consuming nature of managing disputes, our research has shown that the cost of processing disputes claims can be over 15 percent of the total operating cost for electronic payment transactions,” stated Dr. Lynne Baldwin, President of BHMI. “And as the number of electronic transactions has continued to grow, the importance of successfully and cost-effectively managing disputes has become critical to a company’s financial success.”

In order to meet the criteria of cost-effectiveness and successfulness, BHMI’s system works with dispute analysts to ease the process, automatically sending alerts, deciphering regulations and eliminating the need for manual data entry, among other features.

“As a leader in the creation of back-office software solutions for the payments industry, we recognize that one of the biggest challenges companies are facing today is making disputes processing less complicated and time-consuming,” said Susie Swenson, Concourse Product Manager. “As BHMI developed the current release of Concourse – Disputes, one word remained at the forefront – Automation.”

To learn more about the dispute resolution process, plus Concourse – Disputes’ current set of features, read the complete Q and A with BHMI below:

PYMNTS.com: Let’s talk a little about the dispute resolution process. How does it typically work, and how many players are involved?

BHMI: Any company that is involved with the processing of electronic payment transactions, including issuers and acquirers, are typically involved in the disputes management process. They are involved in activities such as retrieval requests, fulfillments, chargebacks, representments, arbitration, and adjustments. To avoid costly financial write-offs and dissatisfied customers, these dispute activities must be performed in a certain order, completed within a certain timeframe, and meet network-specific regulations. As a result, the disputes process from initial claim entry to final resolution can be very complicated and cumbersome.

Now that we have a better grasp of the process, how does Concourse — Disputes make resolution more efficient?

Below are just a few of the ways Concourse – Disputes makes the dispute management process more efficient:

Companies no longer have to decipher, enter, and maintain card association and network regulations because the system includes pre-configured rules.

Disputes analysts don’t need extensive training on the disputes management process because the system guides them to the next appropriate action.

The system automatically sends alerts and reminders so anyone managing disputes is always aware of upcoming events or deadlines.

Since all transaction data is automatically loaded into a centralized repository, the system pre-populates data entry screens with the appropriate transaction data, eliminating duplicate data entry and clerical errors.

The need for manual paper handling and uploading documents into separate systems is eliminated because all documents and forms are in the system and can be forwarded to external systems such as Visa VROL and MasterCard MCOM.

Multiple disputes can be managed together as a case to streamline the process.

Companies can provide system access to their external clients via a secure browser-based viewer so they can initiate and track their own disputes.

What features do you feel have the biggest impact on automating a company’s disputes management process?

One of the most important features is the network-specific configurations. Each card association and network has a different set of disputes regulations that must be followed. Having these rules pre-configured and administered in Concourse – Disputes represents a huge time and money saver. Once this system is deployed, companies will no longer have to pay for costly network regulation expertise and continually maintain complicated disputes regulations.

Two other key features include a powerful workflow engine and intuitive work queues. The workflow engine ensures that all dispute actions are completed in the correct order and all timelines are met based on network-specific regulations. The work queues allow companies to easily monitor and progress disputes claims.

There are many more features within Concourse – Disputes that allow companies to automate their disputes management processing. The ultimate goal of this system is to allow companies to achieve excellence in tracking, managing, and resolving disputed transactions.

Finally, tell us about BHMI’s ongoing focus in the payments industry and what we could see from your company in the future.

BHMI has made a strategic business decision to focus its financial services product division solely on the back-office processing components of electronic payments transactions. The Concourse Financial Software Suite is the focus of these efforts and the industry will see ongoing announcements as it relates to the five product modules within this software suite which include Concourse – Core, Concourse – Extended Settlement, Concourse – Reconciliation, Concourse – Fees & Commissions, and Concourse – Disputes.

For more information on Concourse – Disputes, download the whitepaper here and be sure to check out BHMI’s Official Press Release here.