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Vijaybaskar D

Banking, Financial Services, and Insurance, TCS

Swapna S

Banking, Financial Services, and Insurance, TCS

Automation, NLP Light the Path to Efficient Card Dispute Resolutions

Card disputes looks for straight through processing (STP) through automation

In today’s world, card related transactions have increased multi fold and the volume is only going to increase with time. This has also led to an increase in disputed transactions. Financial intuitions (FIs) are under immense pressure given the already stretched resolution processes and the added cost burden of resolving them. Given the current scenario, FIs need to look at solutions to stabilize the cost of processing disputes to retain the competitive edge and yet be able to engage with the cardholder to strengthen trust.

Seamless dispute management, therefore, requires access to the right skills, adherence to timelines from network operators and central banks, managing of multiple threads, and ensuring financial entries for each step. Additionally, it requires financial institutions to maintain constant communication with the customers every step of the way. Some of the ways the disputes can be resolved are:

  • Resolving Fraud Disputes via Rule-Based Engine - A rule-based engine can potentially help with faster identification of fraud or authorization-related ‘reason codes’ needed to raise chargeback, and perform relevant checks across all network operator rules to eliminate manual processing.
  • Resolving Billing Disputes Using NLP - A billing dispute could pertain to services not rendered, cancelled transactions, or products and services that do not deliver on promise. It is therefore important to design cardholder interactions keeping in mind the goals of dispute management for FIs. An intelligent chatbot underpinned by Natural Language Processing (NLP), can ensure consistent customer experience and help FIs gather comprehensive information.

Another technique that can be used is combining the rule-based engine with NLP-based chatbots and network operator’s rules to create a unique automated solution for FIs to seamlessly collect transaction related data, determine the nature of dispute and the merits of the case, as well as collect relevant documents from the customer in real time through digital channels.