The document provides an overview of payments and dispute management. It begins with an agenda that includes an introduction to payments and cards, different entities in the payments industry, an introduction to disputes in payments, and the stages in a dispute life cycle. It then defines the key entities in the payments process - merchant, acquirer, processor, payment network, card issuer, and card holder. Finally, it explains the stages in a dispute life cycle, including retrieval, chargeback, pre-arbitration, representment, arbitration, and compliance actions. The overall objective is to understand the payments industry and process for resolving disputes.

1. Payments &
Dispute Management

2. Today's Agenda
1 Introduction to Payments &
Cards
2 Different entities in Payments
3
Introduction to Disputes in
Payments
4 Stages in Dispute Life Cycle

3. Objective
By end of this session, we will be able to
understand the overview of Payments &
Cards industry as a function and
introduction to Disputes in Payments &
different stages of Dispute Life Cycle

4. Let's get started!
Are you
ready?

5. M I
A C
N
MERCHANT
ACQUIRER
Payments & Cards Industry
ISSUER
CARD HOLDER
NETWORK
Let’s use Manic model to remember all of these entities used in payments & cards industry
These are five entities responsible for a real time transaction to be authorized and the money settled
across the accounts for the parties

6. Merchant
Merchant is a person / entity who makes profit on selling goods & services
Retail Merchants Mobile Merchant
Internet / E-commerce

7. Acquirer
Acquirer maintains the merchant bank account
Merchant has the contract with Acquirer to mange account
Processes payments on behalf of Merchants
Acquirer charges the fees on transaction

8. Processor
Facilitates and processes the transaction
Acquirer may have ability to process or may outsource to 3rd party
Processors are different form payment gateway
Merchants do not directly talk with processors. Acquirer does that on behalf of merchant

9. Payment Network
Role
Network is the centrally locatedentity that handles the communication
Facilitates Transactions - Electronic Fund Transfer & Digital Payments
Bridges communication between Acquiring & issuing side
Act as middle man for providing
Services - From card issuer for using products - Payment volume is key. Higher the
cost of goods or service, more the network makes
Data Processing - Auth/Settlement /Clearing/ Access and maintainance of
network - Volume of transaction is key, more transactions more fee
International Transactions - Cross border currency conversion, sensitive economic
conditions, FX rate changes etc.

10. Card Issuer
Role
It is the entity that issues the cards - Lender
Follow government regulations while issuing card
Handles application and approval process for customer
Cards issued can be debit / credit / Prepaid & various kinds
Utilizes the service of card network
Holds the responsibility for sending payments to acquiring side
Customer service to card holder

11. Card Holder
Role
You & me who uses the card to buy goods or use services
Does not share sensitive information with anyone unauthorised
Opt the right card for purchase
Pay the card issuer on time
Pay interest on borrowed credit
Pay other fees etc. (As applicable)

12. A dispute is a situation in which a customer questions the validity of a
transaction that was registered to the account.
Customers dispute charges for a variety of reasons, includes
unauthorised charges,
Billing errors or excessive charges,
failure by the merchant to deliver merchandise,
dissatisfaction with the product(s) or service(s) received
Disputes in Payments

13. 3
1
Sale
Transaction
2
Unable to
recognise the
transaction
Investigation
& Proof
4
Series of
responses
from either
parties
5
Final Decision
Dispute Timeline

14. Various card schemes or Network providers / Issuers can have different reason codes
Reason codes are divided in to respective categories
E.g. Disputes | Frauds | Authorisation Issues | Consumer Disputes
Reason codes can be changed in certain circumstances like..
Issuer feels that reason code is not correct then during pre arbitration stage it may change it to
appropriate one
Internal IT systems may have a different set of codes that map the external codes
Reason Codes
Click here for Reason codes

15. A dispute is a situation in which a customer questions the validity of a
transaction that was registered to the account.
Customers dispute charges for a variety of reasons, includes
unauthorised charges,
Billing errors or excessive charges,
failure by the merchant to deliver merchandise,
dissatisfaction with the product(s) or service(s) received
Stages in Dispute Life Cycle

16. Stages in Dispute Life Cycle
3 6
1
Card holder or issuer
requests a copy of
transaction details before
requesting for credit when a
charge is not recognised
2 4 5
RETRIEVAL
CHARGEBACK
REPRESENTMENT ARBITRATION
PRE ARBITRATION COMPLIANCE ACTIONS
Card holder or issuing bank
makes a demand to the
merchant to put the credit
back on card holder's
account
If the decision is not in favor
of merchant then merchant
can still appeal
Additional actions that are
required for compliance
reasons after case is closed
Merchant doesn't agree with
card holders claim and
represents the transaction
information contextually to
issuer through aquirer
If either party i.e., card holder or
merchant disagrees with the decision of
pre arbitration then dispute moves to
Arbitration. such cases network or card
scheme provider will give final decision

17. Summary

18. Thank you!
Have a
great
day
ahead.