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Your billing statement will reflect charges based on the "number of touches", with a lower price for a lower number of touches.
What does success mean?
In this case, success means as little human interaction in the back office as possible while still making sure accountholders are taken care of efficiently and effectively. When Quavo has to utilize less staff to manage back office cases (by reducing touches), Clients using DRE Success Based Pricing enjoy significantly lower per dispute costs compared to other outsourcing options.
What is a Touch?
A touch occurs any time Quavo staff has to perform manual work to move a dispute along its lifecycle. They generally fall into these categories:
- Items Controllable by a Client for business reasons (such as a provisional credit review decision based on a dollar amount threshold)
- Work because of network or processor requirements/offerings or lack thereof (such as an alternate network chargeback or a manual fraud report)
- Routine work due to regulations or consumer requirements (such as interest calculation or credit bureau adjustments if they are not automated)
- Inbound cardholder communication (such as new documents or a request for status)
- Regular work that comes out of automated algorithms (such as a merchant credit the system could not automatically match or a posting candidate from an authorization dispute)Exceptional . QFD employs many matching algorithms and human intervention is a normal part of all of them
- Exception scenarios caused by system downtime or business exceptions where automated retries did not work
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Thousands upon thousands of things automated actions are happening in the system on a regular basis are not considered touches. Here are some categories of activities that are not considered touches:
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Here are some simple examples and the number of touches that they would represent. These examples are not an indication of how often each one happens.
| Scenario | Manual Tasks Completed | Number of Touches | |
|---|---|---|---|
| High dollar fraud dispute on an alternate network with recovery rights and representment | Fraud Reporting PC Review Recovery Rights Determination (Disposition) Chargeback Entry Representment Review | 5 | |
| High dollar non fraud dispute on an alternate network with recovery rights and no represementment | PC Review Recovery Rights Determination (Disposition) Chargeback Entry | 3 | |
| Low dollar fraud dispute on an alternate network | Fraud Reporting | 1 | |
| Low dollar non fraud dispute on an alternate network | None | 0 | |
| Low dollar auto pay dispute | None | 0 | |
| Fraud dispute supported by merchant collaboration networks with recovery via a merchant credit | None | 0 | |
| High dollar "in network" dispute (Visa/MC) with recovery rights and no representment | PC Review | 1 | |
| Low dollar "in network" dispute (Visa/MC) with recovery rights and no representment | None | 0 |
How can I tell how many touches were made on a dispute (and what they were for)?
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For each disputed transaction, it is billed when a touch occurs based on the number that have occurred. For example, if your pricing looks like this:
| Item | Cost |
|---|---|
| Disputes requiring 0 touches | $100 |
| Disputes requiring 1 touch | $120 |
| Disputes requiring 2 touches | $130 |
| Disputes requiring 3 touches or more | $140 |
For a single dispute that requires 5 touches, billing would occur at these points:
| Event | Charge |
|---|---|
| Case submission | $100 |
| First Touch | $20 |
| Second Touch | $10 |
| Third Touch | $10 |
| Fourth Touch | No billing occurs |
| Fifth Touch | No billing occurs |