Dispute Resolution Workflow Using Digital Receipts and Early Refund Alerts
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Solution Overview
Problem
Conventional systems lack sufficient transaction details for customers to verify transactions, leading to high dispute rates and inefficient dispute resolution processes, with resource providers often refunding transactions and paying processing fees even if willing to do so initially.
Innovation Solution
A processing server compiles digital receipt elements from multiple sources and provides them to authorization providers, while monitoring resource provider responses to dispute requests, allowing for timely credit notifications and preventing disputes from reaching acquirers if the provider agrees to refund.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If conventional dispute resolution systems are used, then resource providers can process disputes through acquirers, but processing time and costs increase significantly
Solution Approach 1:
The system sends a preliminary alert notification to the resource provider before the dispute reaches the acquirer. This early notification allows the resource provider to review transaction details and issue refunds proactively, preventing the need for formal acquirer-mediated dispute resolution and significantly reducing processing time.
Solution Approach 2:
The system introduces a centralized processing server as an intermediary between the authorization provider and the resource provider. This intermediary coordinates the dispute resolution process, manages communication, and enables efficient information exchange, allowing resource providers to resolve disputes quickly without involving acquirers.
2Measurement precision
If comprehensive transaction details are provided to customers, then transaction verification accuracy improves, but system complexity and data storage requirements increase
Solution Approach 1:
The system segments transaction information into distinct data elements (transaction ID, amount, date, merchant name, etc.) that can be independently retrieved and presented. This segmentation allows the system to provide comprehensive details without overwhelming complexity, as each element can be sourced from different databases independently.
Solution Approach 2:
The processing server is designed as a universal system that handles multiple functions: retrieving transaction details from various sources, compiling information into coherent records, sending alert notifications, and coordinating dispute resolution. This multi-functionality reduces overall system complexity by consolidating multiple specialized systems into one versatile platform.
3Object-generated harmful factors
If resource providers are given opportunity to prevent disputes, then processing costs decrease, but system control and coordination become more complex
Solution Approach 1:
The system enables resource providers to self-serve in the dispute resolution process by allowing them to review transaction details and issue refunds directly in response to alert notifications. This self-service capability eliminates the need for acquirer-mediated dispute processing, reducing processing fees while the standardized notification protocol keeps coordination complexity manageable.
Data Source
AI summary
Described herein are systems and techniques for reducing the submission of disputes as well as increasing the efficiency of disputes processed via a dispute resolution process. The system enables additional information related to a conducted transaction to be provided via application programming interface calls made to a resource provider. In some embodiments, the system described receives a dispute request from client computing device pertaining to a conducted transaction, the dispute request including a transaction identifier associated with the conducted transaction, determines a resource provider associated with the conducted transaction, provides, to the resource provider, an alert notification indicating the dispute request, the alert notification including at least the transaction identifier, and receives, from the resource provider within the predetermined period of time, a credit notification for the conducted transaction.