One of the first questions we may ask ourselves is, "How do claims work?" The purpose of this article is to explain the life of a dispute in QFD.
We'll cover two types of assignments: recovery path assignments and ancillary assignments. Ancillary assignments must be completed as part of dispute work, but are not assignments that are a part of the recovery path; these assignments involve fees, accounting, and member responses.
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Life of an ACH dispute
QFD supports automated processes like accounting and lettering, however, recovery for ACH disputes will occur outside QFD. Analysts will continue to complete the required assignments within QFD while working outside QFD to complete the investigation and pursue recovery. With the exception of the Process Liability assignment, this is the path ACH claims follow (1 - 5).
- Enrichment
Note: Enrichment can be turned off for ACH claims. Refer to your firm's configurations to know if analysts will see this assignment.
In the Process Enrichment Manually assignment, analysts will input the requested information into the required data fields.
Process Enrichment Manually - Documentation
Note: The Review Documents assignment only generates when the Written Statement of Unauthorized Debit (WSUD) is received. The claim will pend for 10 calendar days after Enrichment is complete. If the WSUD is not received within 10 calendar days, this node will resolve and the Review Documents assignment will not generate. The dispute will move onto the Provisional Credit assignment where the analyst can submit a second request for the WSUD, proceed without documentation, or submit a Good Faith request.
In this assignment, analysts will review the document to ensure it meets the WSUD requirement.
Review Documents (WSUD) - Provisional Credit
Note: The Provisional Credit Review assignment will wait for the WSUD to be received and reviewed before it presents to an analyst. Analysts can enter the Provisional Credit node within the 10-day pend timeframe to work the Provisional Credit assignment by clicking on the Proceed without Documents button.
In the Provisional Credit Review assignment, analysts will determine how to handle the dispute: grant provisional credit when recovery is to be pursued, grant final credit to pay the claim, deny the dispute, or pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Provisional Credit Review - Disposition (Disposition Case)
In the Disposition Case assignment, analysts will determine if recovery should be pursued. They can pursue recovery by completing the form, selecting Do Not Pursue Recovery to move the dispute to the Process Liability assignment, or selecting the Pend option from the Other Actions menu to pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Disposition Case - Recovery
Note: The claim will be paid after the analyst completes the ACH return.
In the Process Return assignment, analysts will process the return in their firm's system of choice. If the analyst determines the return should not be processed, they can select Cancel Recovery from the Other Actions button or they can select Pend to pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Process Return - Disposition (Process Liability)
Note: This assignment will present to analysts when recovery cannot be pursued due to an expired regulation resolution date.
In the Process Liability assignment, analysts will determine if the claim should be paid or denied.
Process Liability
Ancillary Assignments
Collaboration for ATM and ACH Claims: The Check for Merchant Credit assignment may not be presented to analysts in ACH claims. This page explains the Collaboration node's role in ACH claims.
Execute Accounting: In the Execute Accounting assignment, analysts will use their firm's accounting system of choice to complete the accounting action.
Responses: This node houses several assignments that all function similarly to one another. In these assignments, analysts will review the message and take the appropriate action.
Fee Maintenance: In the Refund Fee assignment, analysts will match the account fee to the associated disputed transaction.
Fees: In the Review Fee assignment, analysts will match the account fee to the associated disputed transaction.
Note: This assignment can be turned off. Refer to your firm's configurations to know if analysts will see this assignment.
Stop payment: In the Execute Stop Payment assignment, analysts will process the stop payment in their firm's system of choice.
Life of a Check dispute
QFD supports automated processes like accounting and lettering, however, recovery for check disputes will occur outside QFD. Analysts will continue to complete the required assignments within QFD while working outside QFD to complete the investigation and pursue recovery. This is the path check claims follow (1 - 4).
- Documentation
If there is a Written Statement requirement, then the analyst will see the Documentation node. In check claims, the image of the check is a required document. If the Written Statement is not received within 10 calendar days and the check image is not uploaded, this node will resolve and the Review Documents assignment will not generate.
Review Documents - Provisional Credit
Note: The Provisional Credit Review assignment will wait for the Written Statement to be received and reviewed before it presents to an analyst. Analysts can enter the Provisional Credit node within the 10-day pend timeframe to work the Provisional Credit assignment by clicking on the Proceed without Documents button.
In the Provisional Credit Review assignment, analysts will determine how to handle the dispute: grant provisional credit when recovery is to be pursued, grant final credit to pay the claim, deny the dispute, or pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Provisional Credit Review - Disposition (Disposition Case)
In the Disposition Case assignment, analysts will determine if recovery should be pursued. They can pursue recovery by completing the form, selecting Do Not Pursue Recovery to move the dispute to the Process Liability assignment or make a liability decision immediately, or selecting the Pend option from the Other Actions menu to pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Disposition Case - Recovery
Note: The claim will be paid when the analyst processes the method of recovery (Process Debit, Late Claim Adjustment, or Federal Adjustment). If the analyst pursues the Request Funds recovery option, they will be prompted to choose a pend timeframe and complete the letter to the paying bank. QFD will send the letter, however, the analyst will need to capture the paying bank's response. Recording the paying bank's response occurs in the Recovery node and there are two options: Paid and Denied. If the Denied option is selected, the analyst will need to determine if they pay the claim, deny the claim, or pursue another recovery option. The latter option will move the dispute back to the Disposition node to work the Disposition Case assignment a second time.
Life of a Wire dispute
QFD supports automated processes like accounting and lettering, however, recovery for wire disputes will occur outside QFD. Analysts will continue to complete the required assignments within QFD while working outside QFD to complete the investigation and pursue recovery. This is the path wire claims follow (1 - 2).
- Provisional Credit
Note: The Provisional Credit Review assignment will wait for the Written Statement to be received and reviewed before it presents to an analyst. Analysts can enter the Provisional Credit node within the 10-day pend timeframe to work the Provisional Credit assignment by clicking on the Proceed without Documents button.
In the Provisional Credit Review assignment, analysts will determine how to handle the dispute: grant provisional credit when recovery is to be pursued, grant final credit to pay the claim, deny the dispute, or pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Provisional Credit Review - Recovery
Note: The claim will be paid after the analyst completes the return.
The analyst can click the Process Return button to pay the claim. In the Other Actions menu, the analyst can pend the claim or cancel recovery. Canceling recovery will move the dispute to the Disposition node where it can be denied using the Do Not Pursue Recovery option.
Ancillary Assignment
Fees: In the Review Fee assignment, analysts will match the account fee to the associated disputed transaction. Analysts may be prompted to manually enter the wire fee instead of matching if QFD is unable to obtain fee information.
Note: This assignment can be turned off. Refer to your firm's configurations to know if analysts will see this assignment.
Life of an ATM dispute
QFD supports automated processes like accounting and lettering, however, recovery for ATM disputes will occur outside QFD. Analysts will continue to complete the required assignments within QFD while working outside QFD to complete the investigation and pursue recovery. With the exception of Enrichment and the Process Liability assignment, this is the path ATM claims follow (1 - 6).
- Documentation
Note: The Review Documents assignment only generates when the Statement of Dispute is required and received. The claim will pend for 10 calendar days after Enrichment is skipped. If the Statement of Dispute is not received within 10 calendar days, this node will resolve and the Review Documents assignment will not generate. The dispute will move onto the Provisional Credit assignment where the analyst can submit a second request for the Statement of Dispute or proceed without documentation.
In this assignment, analysts will review the document to ensure it meets the Statement of Dispute requirement.
Review Documents - Provisional Credit
Note: The Provisional Credit Review assignment will wait for the Statement of Dispute if it's required. Analysts can enter the Provisional Credit node within the 10-day pend timeframe to work the Provisional Credit assignment by clicking on the Proceed without Documents button.
In the Provisional Credit Review assignment, analysts will determine how to handle the dispute: grant provisional credit when recovery is to be pursued, grant final credit to pay the claim, deny the dispute, or pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Provisional Credit Review - Disposition (Disposition Case)
In the Disposition Case assignment, analysts will determine if recovery should be pursued. They can pursue recovery by completing the form, selecting Do Not Pursue Recovery to move the dispute to the Process Liability assignment or make a liability decision immediately, or selecting the Pend option from the Other Actions menu to pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Disposition Case - Recovery
In the Execute Chargeback and Process Chargeback assignments, analysts will submit the chargeback in their firm's system of choice. Know that only one of the two will present: Execute Chargeback or Process Chargeback. If the analyst determines the chargeback should not be submitted, they can select Cancel Recovery from the Other Actions button, which will move the dispute back into the Disposition node with the Disposition Case assignment applied.
Execute Chargeback or Process Chargeback
Proprietary recovery options- Balance Review: Review the ATM balance
- Electronic Journal Review: Check the activity records in the electronic journal
- Check item processing: Review the check processing data
- Encoding error: Review records for encoding errors
- Disposition (Pending Response)
The dispute will move back to the Disposition node after executing the chargeback manually in the external system. The dispute will pend for 10 days while we complete the investigation outside of QFD. Once the investigation has been completed, we can manually end the pend period by choosing a response that aligns with the result of our investigation, selecting a response date, and entering our findings in the Notes box.
Pending Response - Disposition (Review Dispute Response)
In the Review Dispute Response assignment, analysts will determine how to handle the claim based on the results of the investigation. Analysts can move the dispute back into the Disposition Case assignment by selecting Pursue Other Recovery Options, which allow them to choose another investigation method. Analysts can write off (pay) or deny the dispute by selecting the respective options.
Review Dispute Response - Disposition (Process Liability)
Note: This assignment will present to analysts when recovery cannot be pursued due to an expired regulation resolution date.
In the Process Liability assignment, analysts will determine if the claim should be paid or denied.
Process Liability
Ancillary Assignments
Collaboration for ATM and ACH Claims: The Check for Merchant Credit assignment may not present to analysts in ATM claims. This page explains the Collaboration node's role in ATM claims.
Execute Accounting: In the Execute Accounting assignment, analysts will use their firm's accounting system of choice to complete the accounting action.
Responses: This node houses several assignments that all function similarly to one another. In these assignments, analysts will review the message and take the appropriate action.
Fee Maintenance: In the Refund Fee assignment, analysts will match the account fee to the associated disputed transaction.
Fees: In the Review Fee assignment, analysts will match the account fee to the associated disputed transaction.
Note: This assignment can be turned off. Refer to your firm's configurations to know if analysts will see this assignment.
Service Block Reissue Card: Analysts will be presented with the Block Card/Block and Reissue Card assignment when there was a failure to do so through automated processes. Analysts will complete the required action in their firm's system of choice.
Fraud Reporting: Analysts will be presented with an assignment involving fraud reporting when there was a failure to execute fraud reporting or in cases where fraud reporting could not be completed by QFD.
Interest: Analysts will use the calculator tool to calculate the amount of the interest fee that should be refunded should the claim be paid. This assignment will only present on interest-bearing accounts.
Life of a Card dispute
Card disputes have the most variability in their recovery path assignments. We'll explain the general life of a card dispute below. You can review specific assignments when prompted in their respective node's parent page in the left sidebar.
- Authorization
Note: Disputing pending charges is optional. Refer to your firm's configuration to know if analysts will see this assignment.
The Authorization Review assignment generates when a pending charge was disputed and QFD finds a posted transaction that potentially matches the authorization. In this assignment, analysts will match the disputed authorization to its matching posted charge.
Authorization Review - Enrichment
Note: There are several Enrichment assignments. The Select Transaction assignment is the most common, however, it will not generate if the charge was placed on an alternate network.
The Select Transactions assignment generates when QFD finds a potential matching transaction from the Association to the disputed charge. The purpose of this assignment is to bring rich transactional data (such as POS entry mode, authorization code, security codes, etc.) to the disputed transaction. Analysts will match the Association's transaction with the disputed charge.
Select Transaction - Collaboration
Note: The dispute will move to the Collaboration node several times throughout the claim resolution process.
The Check for Merchant Credit assignment generates when QFD identifies a potential refund from the merchant in the Ethoca or Verifi flow or by reviewing the recent account activity.
Check for Merchant Credit - Provisional Credit
In the Provisional Credit Review assignment, analysts will determine how to handle the dispute: grant provisional credit when recovery is to be pursued, grant final credit to pay the claim, deny the dispute, or pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Provisional Credit Review - Disposition (Disposition Case)
Note: The disposition node houses many assignments that involve the chargeback. The Disposition Case assignment is the most common because its purpose is to submit the chargeback.
In the Disposition Case assignment, analysts will determine if recovery should be pursued. They can pursue recovery by completing the form, selecting Do Not Pursue Recovery to move the dispute to the Process Liability assignment or make a liability decision immediately, or selecting the Pend option from the Other Actions menu to pend the dispute for a variety of reasons. For more information on pending the claim, click here.
Disposition Case - Disposition (Review Chargeback)
Note: The Review Chargeback assignment generates when the chargeback form has an issue that needs to be resolved prior to submitting the chargeback.
In the Review Chargeback assignment, analysts will correct the chargeback form.
Review Chargeback - Recovery (Execute Chargeback)
Note: The Execute Chargeback assignment generates when the automated chargeback process fails.
In the Execute Chargeback assignment, analysts will identify the reason for the chargeback failure and manually submit the chargeback in their firm's Association system of choice.
Execute Chargeback - Recovery (Process Chargeback)
Note: The Process Chargeback assignment generates when the disputed charge was placed on an alternate network.
In the Process Chargeback assignment, analysts will manually submit the chargeback in their firm's Association system of choice.
Process Chargeback - Disposition (Review Dispute Response)
In the Review Dispute Response assignment, analysts will review the merchant's response and determine the next action.
Review Dispute Response - Disposition (Process Liability)
Note: This assignment will present to analysts when recovery cannot be pursued due to an expired regulation resolution date or otherwise does not have chargeback rights.
In the Process Liability assignment, analysts will determine if the claim should be paid or denied.
Process Liability
Ancillary Assignments
Documentation: When there is a documentation requirement on the claim, the claim will pend for 10 calendar days after enrichment, waiting on the document to be received. If the required document is not received within 10 calendar days, this node will resolve and the Review Documents assignment will not generate. The dispute will move on to the next stage in its lifecycle. In this assignment, analysts will review the document to ensure it meets the documentation requirement.
Execute Accounting: In the Execute Accounting assignment, analysts will use their firm's accounting system of choice to complete the accounting action.
Responses: This node houses several assignments that all function similarly to one another. In these assignments, analysts will review the message and take the appropriate action.
Fee Maintenance: In the Refund Fee assignment, analysts will match the account fee to the associated disputed transaction.
Fees: In the Review Fee assignment, analysts will match the account fee to the associated disputed transaction.
Note: This assignment can be turned off. Refer to your firm's configurations to know if analysts will see this assignment.
Service Block Reissue Card: Analysts will be presented with the Block Card/Block and Reissue Card assignment when there was a failure to do so through automated processes. Analysts will complete the required action in their firm's system of choice.
Fraud Reporting: Analysts will be presented with an assignment involving fraud reporting when there was a failure to execute fraud reporting or in cases where fraud reporting could not be completed by QFD.
Interest: Analysts will use the calculator tool to calculate the amount of the interest fee that should be refunded should the claim be paid. This assignment will only present on interest-bearing accounts.