Originally published on CUInsight.com
Fraud itself doesn’t determine whether a member stays or leaves—but fraud disputes can. Research shows that 62% of members base their loyalty more on how their financial institution handles a dispute rather than the fraud itself.
Getting fraud disputes right is critical, and it requires a process that’s fast, fair, and frictionless. Yet too many credit unions rely on tools or processes that slow growth and put the member experience at risk.
The agentic commerce wave: The next big dispute test for credit unions
As if today’s fraud landscape weren’t complex enough, a new wave is on the horizon: agentic commerce. Consumers are increasingly relying on AI-powered agents to make purchases, and with that will come mistakes, unclear transactions, and fraud implications.
The biggest concern? The rise of first-party fraud claims, particularly when customers claim, “I didn’t order this; my AI agent did.” By 2026, this shift could spark an unprecedented surge in disputes, testing every credit union’s system to its limits. Those tied to manual workflows or fragmented tools will be least equipped to handle the dispute surge.
The takeaway is that preparing for what we know is coming starts now. Credit unions need automated dispute technologies that are market-tested on millions of data points and cases, and built to handle today’s caseloads while scaling for tomorrow’s, too.
The AI dispute management vendor gold rush: Scalable innovation or hype?
For credit unions, modernizing disputes means streamlining the process—and today, that means leaning into AI-powered solutions. The challenge is that the market has become an AI gold rush, flooded with vendors making big promises. The question is, can they really deliver?
The reality is that some AI marketed solutions bring real value, while others are experimental prototypes dressed up as enterprise-ready platforms. And choosing the wrong partner brings risks, from wasting budgets to creating fragmented processes, compliance headaches, and even hurting the member experience.
Four red flags credit unions should be able to spot
The stakes are high, and no credit union can afford to be a beta tester for unproven technology. To protect their members and future-proof their operations, credit unions should learn how to separate proven technology from hype. The key is knowing what to watch for and asking smart questions. Don’t put your credit union’s reputation at risk by being someone else’s AI beta test. Here are four red flags to watch for:
1. Experimental claims over a proven track record
Would you trust an AI model trained on a few months of limited dispute scenarios or a decade of historically rich data? That gap can mean the difference between lasting success and a failed implementation.
Yet, some vendors claim to offer “AI-powered” capabilities, but don’t actually have that foundation in place. A true automated dispute management process requires years of real-world data and millions of resolved cases that train AI on real-world outcomes.
What to ask: “How many disputes has your AI actually resolved?” The answer will separate mature platforms from experimental prototypes. Don’t accept general AI capability claims. Watch for vague metrics, references to beta customers instead of production deployments, or heavy emphasis on being “cutting-edge” without demonstrated outcomes.
What you want to see are concrete examples, including specific dispute volume metrics, timeline proof points, case studies, and measurable results across multiple financial institutions, including other credit unions.
2. A point solution instead of an end-to-end strategy
Credit unions need a dispute solution that covers the entire dispute lifecycle. The problem is that many platforms are marketed as “comprehensive,” and while they may be “AI-powered,” they only handle one part of the process.
Narrow solutions leave credit unions in a bad place. They end up layering tools and creating fragmentation. With that comes compliance risks and training burdens that are especially difficult for credit unions that operate with leaner fraud teams. Fragmentation can also create gaps that can slow resolution times, increase errors, and ultimately frustrate members.
What to ask: “If we implement your solution, what other vendors will we still need?” The goal is to identify configurable, end-to-end platforms that can handle intake through resolution with the flexibility to evolve as your credit union’s needs change.
3. Surface-level connections over integration depth
Credit unions should also steer clear of solutions that require complicated integrations, custom development just for basic connectivity, or that operate in isolation from your existing tech stack. These scenarios will demand extensive IT resources and create unnecessary complexity. It’s equally important to consider how poor integrations affect the member experience. A dispute system shouldn’t force members to repeat information or create extra work for staff.
What to ask: “How does your platform integrate with our core banking system, CRM, and fraud tools?” Look for low-lift integrations that work seamlessly with your existing technology, allow information to flow naturally between systems, and maintain personalized service without adding friction for members.
4. Proof of concept over operational readiness
Implementation often looks very different in practice than it does in vendor pitches. This is where you can separate platforms with proven methodologies from those still trying to figure out how to scale.
What to ask: “What does implementation actually look like?” Be wary of solutions that come with unrealistic timelines, require extensive customization before you can access basic functionality, or deliver impressive pilot results that fall apart under production volumes.
Look for production-ready platforms that have clear implementation timelines, methodologies with a track record of success, and that can show value within the first 90 days.
Dispute resolution done right with good AI
AI can transform dispute resolution for credit unions, streamlining operations, protecting compliance, and strengthening member trust. But with vendor hype at its peak and agentic commerce set to drive a surge in disputes, credit unions can’t afford to be test cases for young, unproven technology.
Credit unions leaders must stay true to what has helped them maintain their reputation: solutions that are proven, scalable, and designed with members at the core.