Automation

Revolutionize Transaction Dispute Resolution with Intelligent Automation

Jul 03,2021

Credit card transaction disputes are unfortunately all too common today. Whether they arise due to fraud, miscommunication, poor-quality services or products, or something else entirely, chargebacks are a headache for banks, merchants, and consumers alike.

Fortunately for card issuers, document understanding solutions can cut down on the intensive, manual tasks involved in resolving disputes.

In the sections that follow, we lay out just how such technology can revolutionize dispute resolution processes.

Speed Up the Process 

The majority of Americans have at least one credit card, and the average cardholder has at least four. That makes for a staggering 511.4 million credit cards in the U.S. alone. It’s no wonder, then, that there are approximately 25 million credit card disputes each year. Unsurprisingly, ironing out all these chargebacks is a time-consuming process, and one that is made all the more so by the manual operations banks continue to use.

“When a transaction dispute happens, it is actually more complex than people think,” Toby Burton, business value consultant at Instabase, said. “There are manual operations within the bank to open that case, identify what the data is, classify those documents accurately, get the data out of those documents, perform checks and validation, analyze it, and make a decision. That manual process to understand what’s in these documents is incredibly time-consuming,” Burton said.

Transaction dispute resolution today

Instead of having human personnel attempt to extract and understand all necessary data, card issuers can now turn to intelligent document understanding solutions such as Instabase to help. With its uniquely cognitive approach, such a platform is made to streamline, speed, and accurately ‘digest’ the information in large backlogs of highly variable documents. In fact, Instabase’s solutions are designed to scale more than 300,000 documents per hour, saving hundreds of hours of employees’ time.

That’s particularly important because the amount of transaction dispute work is only likely to increase in the future. “The volume of these disputes across some of the banks that we speak to are huge, so the backlog just keeps rising and rising,” Burton noted.

Stop Leakage 

“Disputes can prove costly in a variety of ways,” a piece in PaymentsJournal.com reads, in part. “To resolve a dispute, issuers and merchants must spend time and money establishing whether the transaction was legitimate or not. From claim losses to lost customer revenue, there are financial harms to chargebacks.”

To slash leakage costs, banks and other card issuers should automate data extraction and validation, which can be done with document understanding software.

Improve the Customer Experience   

Maintaining customer satisfaction, especially during disputes, is what keeps customers loyal. Once a cardholder initiates a dispute, they expect a timely decision from the card issuer, whether the dollar amount in question is $25 or $25,000. They also want the process to be one that is relatively easy for them and doesn’t take up significant time either to figure out or complete.

When a card issuer uses intelligent automation to smooth its chargeback operations, it gets a system that automatically fetches, processes, and spit-classifies incoming documents, then also automatically extracts and validates input from the required fields. Only then will human eyes be required to review the information.

Transaction dispute resolution with intelligent automation

This much-changed process means everything happens faster and more accurately, from getting information to the merchant to reviewing received evidence. And that means cardholders receive answers sooner, keeping them happier.

The benefits of implementing intelligent automation are myriad and far-reaching. Get a demo of the Instabase platform today.

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