Online Dispute Resolution

Self-service for the card holder to raise disputes from online banking portal via APIs and get notified with the disputes status as and when it changes.

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Inspiration

The worldwide pandemic situation has prompted a large volume of client disputes which requires a more timely and efficient resolution. We wanted to provide a solution which would enable customer to communicate, view and override disputes rather than waiting for bank's response. Access real time data in secure environment, issue notifications and reminders.The increasing volume of client dispute resulting in

  1. More overhead for bank's front office/customer care
  2. Delay in responding customer
  3. Customer dissatisfaction
  4. Chargeback loss

What it does

Online Dispute Resolution is an API based solution to make dispute for easier and faster between cardholder and issuers. Some of the functionalities of online dispute resolution are:

  1. Managing disputes online is much faster which helps bank’s card center to submit chargeback within dispute timeframe to avoid any cardholder liability.
  2. Receiving notification online in banking app helps cardholder to respond to the dispute query immediately or providing supporting documents online.
  3. Cardholder can see all disputes (both resolved and open) in one place rather than multiple letters from bank.
  4. Responding online without the need to respond via mail.
  5. Track anytime the status of the dispute online throughout dispute lifecycle.
  6. See all dispute letters sent by bank in one place.

How we built it

Online Dispute resolution is integrated with cardholder's online banking app. Cardholder has a option to raise dispute for a transaction provided the transaction is disputable based on business rules. There is option for the cardholder to choose why they want to raise dispute and upon selection of dispute reason cardholder need to answer some basic questions in support of his/her dispute. All these question and answer will be validated by system as per dispute scheme rules.

Once all questions are correctly answered, cardholder create dispute button and immediately can see response message that the dispute is created and assigned to bank’s fraud and disputes team.

Now let’s switch to Pega Smart Disputes for issuer and you can see the case is created and assigned to dispute questionnaire screen with everything pre-populated as answered by cardholder. The case will be assigned to bank's back office department. So there is no involvement of front office/customer care.

If the dispute processing team need further documentation or information from cardholder they can easily reach out to cardholder via API channel to get more information. Here you can mention what you want from cardholder and pend your case until cardholder responds. Cardholder can see a notification in his/her online banking app.

Cardholder has a option to see "Dispute Summary" with all open and resolved disputes. In Open disputes section cardholder can see all disputes raised and can check the status of dispute or any action pending from cardholder side..

There is a option for cardholder to send documents or information to bank electronically rather sending it via mail.

Challenges we ran into

  1. Building a secured API based solution which can be used by any card issuers .
  2. To make it understandable by cardholder, self explanatory with comprehensive instructions and error messages.

Accomplishments that we're proud of

By using Online Disputes Resolution combined benefits can be achieved in the areas of efficiency gain, customer service and operational risk

  1. The manual execution effort for back office can be minimized up to 40%.​
  2. Potentially it can be used for 95% of the volume of regular dispute cases.​
  3. Average processing time can be reduced up to 50%.​
  4. The response time to the customer is reduced by about 50%.​
  5. Less effort for the customer and the back office to answer additional questions. ​
  6. Fewer losses due to missed deadlines or incorrect entries. ​

What we learned

We have gained significant knowledge in secured API integration, chargeback rules, Pega smart disputes for issuers.

What's next for Online Dispute Resolution

  1. Enable Online Disputes for Mobile Banking.
  2. Enable e-mail notification to customer via secured channel.
  3. Include Fraud chargeback reason as well because this will cover a huge volume of customer disputes.

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