Banking institutions and Fintech organizations are struggling to keep their fraud and dispute resolution processes updated and compliant with Reg E, Reg Z, Nacha, and network mandates. The biggest obstacle to compliance is the complex and ever-changing web of tasks associated with collecting, investigating, resolving, and recovering disputed claims. There has not been a singular end-to-end solution that organizes, automates, and streamlines dispute management tasks…until now.
Quavo’s QFD™ automated dispute resolution software organizes case assignments not only by regulatory deadlines but by urgency determination. Our Get Next Work tool determines urgency with advanced algorithms based on factors like account history, regulatory deadlines, statement dates, and even your investigators’ skillsets.
These are the top 5 ways QFD's Get Next Work urgency algorithm is revolutionizing dispute management:
Issuers often work disputed claims based on the regulatory deadlines that govern each claim. This process is common because it is easy to calculate and follow, but this is far from an efficient approach to project management. If you are a debit-only shop and all your disputed transactions are governed by Regulation E stipulations, then all claims must be resolved 90 days after receipt. This work assignment by order of claim submission may seem simple enough, but what if you have a blended shop that manages both credit and debit transactions? Credit and debit claims are governed by two different sets of regulations with more than one deadline to consider, and the complexities do not stop there.
Regulation Z governs credit disputes, stipulating that its requirements be upheld by both issuers and consumers. Reg Z deadlines are subject to account holder responsibility, stating that consumers must issue their claim within 60 days from their next statement date, or issuers can reject the claim outright. What happens when a claim is submitted on the 10th, 30th, or 59th day? The available time for issuers to resolve and recover Reg Z claims varies significantly, requiring an intuitive project management software to organize and assign claims by regulation and according to various deadline variables.
Working claims according to regulatory deadlines is not sufficient to avoid fines and penalties but working disputes by urgency determination is. Calculating the urgency of a dispute is akin to determining how much time is left to complete the recovery process. The main word being recovery, not resolution. Resolving disputes in the eyes of the account holder is quite different from recovering a dispute. With requirements like provisional credit and pre-arbitration, issuers cannot afford to resolve disputes without recovering the funds associated with the dispute. Resolution and recovery must be synchronous in the dispute management process, this is only made possible by acquiring a thorough understanding of the factors that determine a claim’s urgency:
- Dispute date – determines how much time an issuer must act on the claim
- Transaction date – determines how long an issuer must recover funds
- Last statement date – determines how long an account holder must submit credit transaction dispute
- Claim date – determines how long the issuer must resolve the claim with the account holder
Non-compliance with Reg E results in a $1,000 fine per claim (not to exceed 1% of the financial organization’s assets). This may be straightforward enough, but Reg Z penalties are far less clear. Unlike Reg E, Reg Z penalties are not stipulated in the regulation itself but by the CFPB. The risks associated with missing claim resolution deadlines for credit disputes can only be managed with intuitive, streamlined project management processes. Something issuers traditionally lack.
Fortunately, our QFD fraud and dispute management software organizes all the tasks required from intake to resolution and recovery. QFD is cloud-based, requiring no lengthy and costly implementation or maintenance and it is supported by continued service after onboarding. Our software has regulatory rules built-in, and it supports full control over and access to all pertinent information required during an audit.
QFD assures compliance with its Get Next Work workflow management tool. Get Next Work automatically determines urgency by using advanced regulatory algorithms, including:
- Investigator’s skillsets
- Account history
- Information collected at intake
- Network/association chargeback timeframes
Cases are then filtered by:
- Cases closest to their applicable regulatory deadlines
- High-priority cases
- Cases with similar transactional scenarios
Given the staggering costs and frequency of fines and penalties due to non-compliance, it seems unfathomable that issuers continue to rely on spreadsheets, emails, and calendars to uphold competing and complex regulatory deadlines and case information. Yet surprisingly, most issuers are reluctant to replace manual, outdated methods with automated chargeback management solutions.
In our experience, this is often due to a misplaced trust in outdated processes that predate digital banking. Many financial organizations approach fraud management solutions with trepidation, hesitating at costly and lengthy implementations, lacking insight, and relinquishing customer experience control. But the fact remains: 80% of organization leaders say their business is threatened by a lack of updated technology and innovation.
With Quavo’s QFD software issuers have more control over their fraud and dispute processes. Tools like Get Next Work equips your staff with all the information required to resolve and recover fraud and dispute transactions – in one place. What’s more, Quavo software comes with continued service after onboarding to eliminate demands on your internal resources and IT teams.
QFD dispute management software features automated technology that organizes work baskets capable of assigning claims according to regulatory requirements, so issuers can easily overcome non-compliance risks. QFD also features our seasoned fraud and dispute experts’ automatic regulatory updates to ensure a fully compliant process.
We know that fraud and dispute management is a tedious and complicated part of the financial services industry because Quavo was founded by experts with decades of experience at some of the world’s largest banks, managing nothing else but fraud and disputes. Our unique insight into what works and fails has allowed us to provide the best Disputes as a Service solution in the industry at a fraction of other providers’ costs.
By leveraging QFD automated dispute management software, your business can better service account holders, meet regulatory deadlines, and easily handle sudden influxes in claims.
Learn more about QFD and its many capabilities like our Spanish language features and self-service intake portal online or via our downloadable product data-sheet. To connect with one of our experts and determine the right solution for your team, email us at firstname.lastname@example.org. We’re happy to help.