Dispute Resolution Experts Success Based Pricing

Purpose

The purpose of this article is to explain how DRE success based pricing is billed and metered as various dispute scenarios play out.  Success based pricing for DRE is based upon the principle that the more volume that can be automated, the less a Client pays per dispute.

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).  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

What is not a Touch?

Thousands upon thousands of 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:

• Operationally necessary activities not related to an individual disputed transaction (such as checking for whether any representments at all have come in for alternate networks)
• Any work completed by a Client (i.e. not Quavo staff), such as a fraud review or transaction types that are not worked by DRE staff but are entered into QFD
• Work completed by system automation (such as an automated chargeback, accounting adjustment, etc..)
• Work that does not move a dispute along in its lifecycle (such as checking on a case for status or opening a case, but no action can be taken)
• Support remediation jobs such as large bulk processes affecting multiple claims, even when initiated by Quavo staff
• Other operational items like monitoring queue volumes, quality controls and reviews, audits, etc..

What are some examples of manual tasks that are considered a touch?

These are examples and not an all inclusive list:

• Provisional Credit Review
• Fraud Reporting
• Chargebacks
• Representment Review
• Liability Assignment (write off vs. denying a cardholder)
• Cardholder Document Review
• Cardholder Response Review
• Interest Calculation
• Credit Bureau Adjustments

What are some common scenarios and their likely number of touches?

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.

How can I tell how many touches were made on a dispute (and what they were for)?

This detail is visible in the audit history currently.  If an audit event is recorded by Quavo staff, it is considered a touch.  If the event is not recorded by Quavo staff or is the result of an automation process, it is not considered a touch.

How does billing work in this model?

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:

For a single dispute that requires 5 touches, billing would occur at these points: