Fraud Claim Process
- Kristafanie Somers
Overview
Understanding the flow and assignments involved in fraud dispute investigations ensures compliance, efficiency, and accuracy, while also protecting both the financial institution and its customers from potential losses or regulatory issues.
This article focuses on the fraud claim workflow for card transactions.
Â
Enrichment
QFD will enrich the dispute with critical transaction details. In some cases, this task is manually completed through the below tasks.
User Assignment(s)
Documentation
If the Statement of Fraud request is enabled, users will be prompted to review the completed and returned Statement of Fraud. This step is not typically visible prior to Enrichment.
User Assignment(s)
Fraud Reporting
Fraud reporting must be completed as a part of fraud claim work. In some cases, submitting the fraud report must be completed manually following the task below. This task is available after Enrichment.
User Assignment(s)
Collaboration
If Ethoca and/or Verifi are/is enabled, QFD will handle the submission. In some cases, reviewing for a merchant refund is completed manually in the assignment below. Note that the dispute will route back to Collaboration several times throughout the process for a refund review using recent account activity handled by QFD.
User Assignment(s)
Investigation
If auto-provisional credit is not issued, users are prompted to review the dispute and determine if provisional credit should be issued.
User Assignment(s)
Recovery Rights
Depending on unmet dependencies and client settings, users may be prompted to manually review the dispute prior to chargeback through the tasks below.
User Assignment(s)
Chargeback
In some cases, the chargeback is not automated and will need to be submitted manually in the tasks below.
User Assignment(s)
VISA Execute Chargeback
Mastercard Execute Chargeback
Acquirer Response
Reviewing the acquirer response to the chargeback is always manual. Users will review the merchant’s evidence and determine next steps in the tasks below.
User Assignment(s)
Mastercard Review Representment
Issuer Response
In some cases, executing the issuer response is manual, so users will be prompted to update the case filing following the tasks below.
User Assignment(s)
Mastercard Execute Case Filing
After the case filing has been updated, the Acquirer can respond and initiate Pre-Arbitration before moving to Arbitration on Mastercard transactions.
Arbitration
Typically, the Arbitration ruling is automatically received and QFD finalizes dispute resolution. In some cases, this process is not automated and users will need to apply the Association’s ruling to the dispute manually.
User Assignment(s)
VISA Review Arbitration
Mastercard Arbitration Response Failed
Â