Once transactions encoded with "life-cycle" identification numbers begin following through the VisaNet system next April, Visa will begin gearing up for the launch of a new phase of PaymentService 2000.
Starting August 28, 1993, Visa will begin accumulating a central database containing a rolling six-month history of PS2000 transactions. This will enable Visa to eliminate tens of thousands of invalid chargebacks without unnecessary member involvement. In fact, the goal is to completely eliminate all invalid exceptions by 1995.
This new database will permit Visa to significantly upgrade its already successful Chargeback Reduction Service, which currently monitors the accuracy of chargeback data submitted by members and provide them with helpful information on improving performance.
But starting next summer, the new PS2000 technology will enable Visa to analyze and research transactions before they're even sent to the issuers. VisaNet will perform this function automatically at the time of clearing, and Visa will advise members during the settlement process of the chargeback rights they have--or do not have--for a given transaction.
Should an invalid transaction be entered into interchange following the initial VisaNet determination of chargeback rights, Visa can reject it instaneously by using the "life-cycle" number to check the transaction. This spares acquirers the costly process of research and representment.
As for valid chargebacks, this new VisaNet storage and analysis capability will save issuers and acquirers alike the enormous cost associated with conducting their own research and verification of chargeback rights.