# Transactions, Disputes & the Power of Automation Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-02 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Why Disputes Deserve the Same Attention: The Evolution of Meta Description: Discover how automation and data transparency can reduce disputes and improve post-transaction experiences for online customers, ensuring secure and seamless URL: https://financedigest.com/transactions-disputes-the-power-of-automationhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/buy-nowfkmklqhu-sbi-300059007-1736838081166-compressed.jpg) _By_ **_Gabe McGloin,_** _Head of Business Development EMEA at Verifi_ **Everyone wants the transaction to happen** Online payments are evolving toward ensuring every card-not-present (CNP) transaction is a dependable, secure, and seamless [experience for the customer](https://www.financedigest.com/the-new-client-adviser-experience-in-the-age-of-the-customer.html "The New Client-Adviser Experience in the Age of the Customer"). And rightly so, as e-commerce retail [sales rose by over 32% in 2020.1 Just to authorise and authenticate a cardholder’s purchase requires data retrieval from many sources](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html "Monte dei Paschi to have underwriting consortium for share sale by Tuesday – source"), and with all the data matching happening in microseconds, the transaction needs to proceed to completion quickly. It’s understood that for e-commerce transactions, if there is too much friction at checkout, there is a possibility of [cart abandonment](https://www.financedigest.com/how-strong-customer-authentication-can-prevent-cart-abandonment.html "How Strong Customer Authentication can Prevent Cart Abandonment"). **Why disputes deserve the same attention** No less vital to ensuring swift [online transactions is the right for the customer](https://www.financedigest.com/how-can-insurers-help-protect-their-customers-online.html "How can insurers help protect their customers online?") to dispute a transaction. Disputes are the safeguard that ensures [customers can be compensated for fraudulent transactions](https://www.financedigest.com/going-cashless-how-transaction-data-can-help-you-meet-your-customers-needs.html "Going Cashless? How transaction data can help you meet your customers’ needs"), damaged goods, or any errors made in transacting. Unfortunately, disputes, and the entire post-transaction experience, have been largely bypassed by automation – until recently. Customers are making it known when they don’t receive the post-transaction [services that they expect](https://www.financedigest.com/what-to-expect-in-2022-financial-services-trends-according-to-salesforce.html "What to expect in 2022? Financial Services Trends, according to Salesforce"). If a customer can’t obtain clarity on a transaction they don’t recall, they’ll might file a dispute. If they [return goods and don’t see a refund in a timely](https://www.financedigest.com/ogrady-to-return-to-bank-of-ireland-as-ceo-irish-times.html "O’Grady to return to Bank of Ireland as CEO – Irish Times") manner, they might file a dispute. And, with the increase in e-commerce transactions over recent years1, it has become more apparent than ever that we need to [remove dispute friction](https://www.financedigest.com/fintechs-must-remove-security-and-compliance-friction-to-unlock-new-growth.html "Fintechs Must Remove Security and Compliance Friction to Unlock New Growth") from the post-transaction environment. To make a meaningful reduction in disputes will require increased attention to the [customer’s post-transaction experience](https://www.financedigest.com/allianz-benelux-taps-into-modern-data-management-to-combat-fraud-and-foster-a-positive-customer-experience.html "Allianz Benelux Taps into Modern Data Management to Combat Fraud and Foster a Positive Customer Experience"). This means implementing [automation and increased data](https://www.financedigest.com/data-automation-and-the-personal-touch-the-future-of-credit-management.html "Data, automation and the personal touch – the future of credit management") transparency at key points along the dispute life cycle, starting with the first customer inquiry. The antiquated retrieval request which can take 2-6 days is obviously not the answer. When a customer wants to clarify information concerning a transaction, it should be at least as quick and easy as making the initial transaction. This is completely attainable with the right infrastructure in place. **Automation, [data transparency](https://www.financedigest.com/thomson-reuters-announces-suite-of-reference-data-capabilities-to-help-financial-industry-meet-mifid-ii-transparency-and-reporting-requirements.html "Thomson Reuters Announces Suite of Reference Data Capabilities to Help Financial Industry Meet MiFID II Transparency and Reporting Requirements"), and disputes** [Say a customer calls](https://www.financedigest.com/europe-power-firms-need-1-5-trillion-euros-in-margin-calls-equinor-says.html "Europe power firms need 1.5 trillion euros in margin calls, Equinor says") their issuer seeking clarity for an unrecognised CNP transaction on their billing statement. Using the transaction identification from the statement, the issuer can request [business and receipt-level data directly from the seller’s customer relationship management](https://www.financedigest.com/finance-management-for-small-business.html "Finance management for small business") (CRM) system. This detailed [data can cover](https://www.financedigest.com/how-insurance-providers-are-starting-to-use-adas-data-to-price-cover.html "How insurance providers are starting to use ADAS data to price cover") seller information such as address, phone number, items purchased, purchase date, along with additional transaction data points. This information can be retrieved in near real-time, while the call centre [agent is on the phone with the customer](https://www.financedigest.com/agent-retention-is-central-to-improving-the-customer-experience-across-financial-services.html "Agent Retention is Central to Improving the Customer Experience Across Financial Services   "). Just to put this in perspective, up to 25% of [calls to the issuer are to seek](https://www.financedigest.com/final-call-for-first-time-buyers-seeking-a-new-home-at-sovereign-place.html "Final Call For First Time Buyers Seeking A New Home At Sovereign Place") clarity of unrecognised transactions,2 and issuers commonly don’t have the level of detailed information to remedy the situation. Other reasons for a customer “clarity call” include simple forgetfulness, an unacknowledged [purchase from a shared](https://www.financedigest.com/the-benefits-of-purchasing-fractional-shares-you-should-know.html "The Benefits of Purchasing Fractional Shares You Should Know") family card, or first-party fraud (disputing a transaction the customer knows is valid). In each case, issuer and seller collaboration can afford the automation and [data transparency to quickly and decisively](https://www.financedigest.com/survey-data-28-brits-say-brexit-sped-decision-buy-uk-holiday-home-year.html "Survey Data: 28% of Brits Say Brexit Has Sped Up Their Decision to Buy a UK Holiday Home This Year") prevent an unwarranted dispute from proceeding. This provides the expected [customer experience](https://www.financedigest.com/why-finance-teams-are-integral-to-the-customer-experience.html "Why finance teams are integral to the customer experience"), as well as the best outcome for the seller and issuer. Now, consider a [customer calls](https://www.financedigest.com/what-are-the-main-challenges-related-to-banks-processing-customer-calls.html "What are the main challenges related to banks processing customer calls? ") their issuer to file a dispute. Historically, that meant the seller would not even know about the dispute until it was past the point of no return, and well on its [way to becoming](https://www.financedigest.com/ways-to-become-a-millionaire.html "Ways to become a millionaire") a chargeback. More recently, through [data transparency and issuer and seller collaboration](https://www.financedigest.com/loomia-announces-collaboration-withstorj-labs-introduces-smart-fabrics-and-consumer-data-to-blockchain-technology.html "LOOMIA Announces Collaboration WithStorj Labs, Introduces Smart Fabrics and Consumer Data to Blockchain Technology"), issuers have been able to alert sellers of a dispute in flight with a 24-hour to 3-day window to issue a credit resolution or allow it to escalate. But these types of [solutions still requires the seller to expend hands-on operational time](https://www.financedigest.com/sun-realm-switches-complicated-spreadsheet-reporting-for-ground-breaking-insight-solution-generating-time-savings-of-over-30.html "Sun Realm switches complicated spreadsheet reporting for ground breaking Insight solution generating time savings of over 30%"), in case review and credit issuance, should the case warrant it. Now, with current technology, issuers can process the dispute through a simple, logic-driven decision [engine populated with seller-defined rules](https://www.financedigest.com/ipc-introduces-industrys-first-compliance-policy-engine-automating-proactive-financial-communications-rule-enforcement.html "IPC introduces industry’s first compliance policy engine, automating proactive financial communications rule enforcement") and parameters. This process can enact a decision, with credit in process, in less than one second – again, all while on the phone with the customer. The outcome is an improved [customer experience that also removes the operational](https://www.financedigest.com/australias-qantas-apologises-to-customers-for-operational-problems.html "Australia’s Qantas apologises to customers for operational problems") time and expense of a manual review or a dispute representment for both the seller and issuer. **Keep an eye on** [customer experience](https://www.financedigest.com/financial-services-is-upping-its-customer-experience-game.html "Financial services is upping its customer experience game") We are right on the verge of having automation, data transparency, and issuer and seller [collaboration align throughout critical points in the payment](https://www.financedigest.com/fingerprints-collaborates-on-biometric-payment-card-market-trial-in-the-usa.html "Fingerprints collaborates on biometric payment card market trial in the USA") life cycle, at the point where it’s needed the most – the post-transaction stage. Customer [confidence and satisfaction are essential to promote the health of payments](https://www.financedigest.com/how-the-epa-plans-to-boost-confidence-in-the-uk-payments-industry-post-brexit.html "How the EPA plans to boost confidence in the UK payments industry post Brexit"), both pre- and post-transaction. These [recent developments](https://www.financedigest.com/automotive-hmi-system-market-recent-industry-developments-and-growth-strategies-adopted-by-players.html "Automotive HMI System Market: Recent Industry Developments and Growth Strategies Adopted by Players") clearly indicate that it will take a new level of collaboration and innovation to reduce disputes in the post-transaction environment. Keep these innovations in mind to protect your business – and keep an eye on your customer’s experience, for the benefit of all transaction stakeholders and the entire [payments ecosystem](https://www.financedigest.com/the-future-of-payments-biometrics-within-the-financial-ecosystem.html "The Future of Payments: Biometrics Within the Financial Ecosystem"). 1 US Ecommerce Forecast 2021 – Insider Intelligence, July 2021 2Improving the Dispute Experience – Aite, May 2020 --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---