Visa is tackling the growing number of payment disputes head-on. The company introduced new AI-powered tools to help merchants and acquirers manage chargebacks and fraud claims more efficiently.
Chargebacks: A Growing Challenge
Disputes and chargebacks have long been a headache for merchants and payment processors. Visa reported handling 106 million disputes worldwide in 2025—a 35% jump from 2019. This surge reflects the growing friction in digital transactions, where fraudulent claims and genuine misunderstandings over charges mix in frustrating ways.
Merchants are caught in a bind. The average value of chargebacks hit $361.31 in early 2025, up nearly 50% from the previous year. Though it eased to $301.91 by the third quarter, these amounts remain higher than historical norms. So businesses face more frequent disputes that still carry hefty price tags.
Visa’s AI-Powered Arsenal
Visa’s tools use artificial intelligence to make dispute resolution faster and simpler. For acquirers, the Dispute Intelligence tool uses AI to analyze dispute data and spot patterns faster. It’s designed to help identify root causes and prioritize responses.
Another tool, the Dispute Doc Analyzer, automatically processes merchant documentation related to disputes. It auto-fills questionnaires and summarizes evidence, reducing manual workloads. Meanwhile, the Visa Dispute Case Manager is a centralized platform that streamlines workflows. It’s set to launch across North America this year, promising easier navigation for acquirers juggling multiple cases.
Merchants Get New Defenses Too
Merchants also get new tools. The Visa Dispute Resolution Network, currently in testing, aims to address transaction issues before they escalate into full disputes. It could be a game-changer by preventing problems early and saving merchants time and money.
Then there’s the Visa Dispute Recovery Manager. This AI-powered service automates re-presentment—the process of challenging chargebacks. It also predicts the likelihood of recovering disputed funds, giving merchants a clearer view of their chances before investing effort.
Finally, the updated Order Insight tool helps clarify transaction details that customers might question. By sharing more complete information with banks, merchants can reduce misunderstandings and avoid unnecessary disputes altogether.
Context: Combatting Fraud in a Complex Ecosystem
Chargebacks aren’t just about consumer complaints; they’re a battleground against fraudsters exploiting loopholes. Bad actors often impersonate payment processors or merchants to trick employees or customers into revealing sensitive data. Others manipulate transactions to steal funds without detection.
Visa’s work is part of a larger effort to protect the payments system. Fraudulent chargebacks strain merchants, acquirers, and consumers alike, driving up costs and eroding trust. Simplifying dispute management and incorporating AI could reduce friction and speed up resolutions.
Still, the challenge remains steep. High-pressure scams with complex pricing models and hidden fees continue to put small businesses at risk. The Federal Trade Commission warns about deceptive merchant service agreements that are hard to cancel and often come with hefty termination fees.
These new tools might help merchants and acquirers fight disputes better, but only if they’re widely used and fit well with current systems.
Visa’s AI tools represent progress in managing the growing number of payment disputes. Still, it’s too soon to tell if these innovations will stop chargebacks and fraud completely.
