Visa's RED Actual Dates

I believe the information contained in the article starting on page 27, "Coming in October: Visa's RED Will Change Chargebacks Forever" [The Green Sheet, September 22, 2003, issue 03:09:02] is not up to date as of the time of publishing. According to Visa, the reduction in chargeback cycles is anticipated to become effective April 2004. Also, the introduction of Visa RED online in the U.S. is behind schedule and some rules and requirements of the use of RED online products are not mandated until October 2004. Thus, acquirers will still have 21 days to get supporting documentation to the issuer. In addition, beginning 10/03, Visa will reduce and/or eliminate the special treatment of T&E (travel and entertainment) chargeback rights. This will have significant impact on this industry. On a positive note, effective 10/03 Visa has reduced the requirement to hold transaction "paper" from 18 months to 12 months, thus relieving the merchant of this burden. This should significantly reduce the volume of compliance cases for request for copy.

Andrew C. Benjamin

Chief Operating Officer

Merlin Solutions LLC

Andrew:

The information contained in the article starting on page 27, "Coming in October: Visa's RED Will Change Chargebacks Forever," contains a typo (we wanted to see if anyone is reading these articles).

According to Visa, the reduction in chargeback cycles is anticipated to become effective April 2004. Also, the introduction of Visa RED online in the U.S. is a bit behind schedule and some rules and requirements of the use of RED online products will not be mandated until October 2004.

In addition, beginning October 2003 Visa will reduce and or eliminate the special treatment of T&E (travel and entertainment) chargeback rights. Although these changes do not take place for a year, it is imperative that chargebacks are handled properly now so that when these changes are mandated, there will be a smooth transition.

David H. Press, Principal and President

Integrity Bankcard Consultants, Inc.

Contributing Writer to The Green Sheet

And Visa Responded...

Re: "Coming in October: Visa's RED Will Change Chargebacks Forever."

The article states that we are eliminating the second chargeback and second first time chargeback in October 2003 (both should be April 2004).

The article also refers to the requirement for all dispute documentation to be online and all arbitration and compliance case filings on Visa Resolve Online effective October 2003.

The correct dates are as follows:

In April 2004, all U.S. Members with $10 billion or more in Visa sales must send their documentation online and use Visa Resolve online for pre-Arbitration and pre-compliance.

In October 2004, all U.S. Members are required to send all dispute documentation online and file all pre-arbitration, arbitration, pre-compliance, and compliance cases through Visa Resolve Online.

Jay Hopkins

Creative Response Concepts (for Visa USA)