Dispute resolution
The Reg E clock starts when the cardholder calls. Today, eight days of that clock is spent on case build — pulling the transaction trail, the AVS result, the 3DS attempt, the merchant's CDRN history, the prior pattern. Agents assemble the packet in minutes, apply the chargeback rule, draft the representment — so the case that reaches an analyst arrives ready to file.
Where the Reg E clock goes
DR-2026-08842 · $412.50 · VAPR-FX Digital Goods · VCR 10.4
- Cardholder claim · IVR transcriptPega CSCollected
Call 28-May 14:02 CT. Member denies the $412.50 charge; reports never used VAPR-FX. Verified identity via knowledge-based authentication.
- Transaction log · authorization trailFIS OptisPulled
AVS=N, CVV2=M, 3DS attempted (not authenticated). MCC 5816 (digital goods). Settlement amount matches authorization.
- Falcon fraud signal · score 947 / 1000FICO FalconCross-checked
Same-session card-testing probes ($4.99 ×2). Cross-border anomaly: IP Frankfurt vs. cardholder Austin. Device fingerprint first-seen <60s prior to charge.
- Cardholder dispute history · 24moQuavoCross-checked
0 prior disputes in 24 months. Tenure 7y. Last CP transaction 4h before disputed charge in Austin TX. Low friendly-fraud risk score.
- Merchant profile · prior CDRN alertsVerifi CDRNCross-checked
VAPR-FX has 3.4% chargeback ratio (above 0.9% Visa threshold). 12 prior CDRN alerts in 90 days for same MCC. No 3DS challenge enforced.
- Ethoca match · merchant did not refundEthocaCross-checked
Pre-arbitration alert raised to merchant 28-May 14:08 CT. 72-hour resolution window expired without merchant refund.
Cardholder did not authorize and did not participate in the transaction; CNP environment. Used when no other fraud reason code applies.
Visa Core Rules · VCR 2.0 · Dispute Condition 10.4 · 120-day filing window from processing date
- Transaction occurred in card-absent environment
POS entry mode = e-commerce; no PAN swipe / chip read.
- Cardholder asserts non-participation
IVR transcript captured 28-May 14:02 CT; identity verified.
- Issuer attempted Visa Secure (3DS) authentication
3DS attempted but not authenticated — merchant did not enforce challenge. Liability remains with merchant.
- Within 120-day filing window from processing date
Processing date 2026-05-28; filing today 2026-06-02 = 5 days. Within window.
- No prior Dispute Condition 10.4 on same transaction
First-pass dispute confirmed via VROL lookup.
- · Compelling Evidence 3.0: prove same PAN used in ≥ 2 prior transactions > 120 days old, no prior fraud reports, matching device fingerprint + IP / shipping address.
- · Visa Secure full authentication (challenge completed) → liability shift to issuer.
- · Proof of digital goods delivery to an IP / email tied to cardholder.
- 2026-05-22Trader Joe's #621 Austin TX$84.12Card· Normal pattern · CP
- 2026-05-24Shell Oil 8821 Austin TX$52.40Card· Normal pattern · CP
- 2026-05-28VAPR-FX Digital Goods$412.50Card⚠ Disputed · CNP · DE IP
- 2026-05-28STMR*MicroTopup$4.99Card⚠ Card-testing probe · same minute as VAPR-FX
- 2026-05-28STMR*MicroTopup$4.99Card⚠ Card-testing probe (repeated)
- 2026-05-28WORLDLD*GiftCard EU$199.00Card⚠ Same fingerprint · auth declined by Falcon
- 2026-05-29Whole Foods #341 Austin TX$67.80Card· Cardholder resumes normal use (after re-issue)
- 1Intake parsed · reason code candidate set
Pulled IVR transcript and chat from Pega. Member asserts non-participation in $412.50 VAPR-FX charge. Candidate codes: 10.4 (CNP fraud), 13.1 (not received), 11.3 (no auth). Eliminated 11.3 (auth approved) and 13.1 (digital goods, no shipment claim). Selected 10.4.
- 2Evidence assembled across 4 source systems
Transaction trail from FIS Optis (AVS=N, CVV=M, 3DS attempted, MCC 5816). FICO Falcon score 947/1000 with two card-testing probes in the same session. Cardholder dispute history (0 in 24mo) from Quavo. Merchant CDRN alert history (3.4% chargeback ratio) from Verifi.
- 3Fraud-pattern confluence · CNP take-over signature
Device fingerprint first-seen <60s before charge. IP Frankfurt vs. cardholder Austin (last CP txn 4h prior). Two same-session $4.99 probes consistent with card-testing. AVS mismatch. Pattern matches account-takeover via PAN compromise, not friendly fraud.
- 4VCR 10.4 requirements · all 5 satisfied
Card-absent confirmed. Cardholder asserts non-participation. 3DS attempted but not authenticated (merchant did not enforce challenge → liability stays merchant-side). Within 120-day filing window. No prior 10.4 on this transaction.
- 5Recommendation drafted · awaiting human approval
Recommend: provisional credit $412.50 within Reg E 10-day window, issue chargeback to acquirer under VCR 10.4, re-issue PAN, suppress card-testing merchants. Agent will NOT issue provisional credit (Reg E §1005.11 requires institution decision). Packet ready for analyst sign-off.
Packet will draft after the agent completes its analysis.
Reason code selected, evidence pulled from four systems of record, network-rule clauses confirmed, representment packet drafted. Every artifact links back to the source.
Provisional credit decisions are institution-owned per Reg E §1005.11(c) — agents never refund. Any recommended disposition that nets a loss above $X / case threshold escalates to a dispute manager. Submissions to VROL / Mastercom are human-triggered.
Every rule application traces to the specific VCR / MCOP clause. Every fraud signal links to the Falcon score, the AVS / 3DS result, the CDRN history. Defensible against a network compliance audit.