Visa told the media that it plans to launch six new tools utilizing artificial intelligence technology to drive the modernization of its credit card fee dispute resolution process.

The digital payments giant stated that the core purpose of these new tools is to reduce the cost pressures and operational frustrations faced by multiple related entities in the payment process, including merchants, issuing institutions, and acquiring institutions, due to "outdated" dispute resolution processes.

In a media interview, Andrew Torre, President of Visa Value-Added Services, stated, “Part of the challenge is that these back-office systems still rely heavily on human intervention. We must seriously consider how to address this issue at scale.”

Torre explained that by 2025, Visa had processed over 106 million fee disputes globally, a 35% increase from 2019.

He further stated, “Our goal is to streamline processes as much as possible. We hope to see the growth rate decline.”

Visa's newly launched tool is part of a broader trend among major banks and financial institutions integrating artificial intelligence into their operations—these institutions' AI applications encompass both internal operations and various consumer-facing services. It is understood that JPMorgan Chase and Goldman Sachs have both explicitly stated they are using AI technology to reduce staff; Bank of New York plans to invest $3.8 billion in technology by 2025, an amount representing approximately 19% of its annual revenue.

Visa explained that three of the six new tools are specifically designed for merchants: first, they help merchants resolve potential disputes before they escalate into formal disputes; second, they leverage AI-generated responses to efficiently manage disputes; and third, they provide more detailed order information, eliminating cardholder confusion regarding unfamiliar charges.

Torre illustrated this by stating that many fee disputes arise from cardholders' disagreement with specific charges on their statements. This new tool allows Visa to provide financial institutions with richer, more detailed information, helping cardholders gain a clearer and deeper understanding of their spending data, thereby reducing disputes.

The other three tools are designed for card issuers and acquiring institutions. They rely on predictive AI models to achieve three main functions: first, assisting staff in case-by-case analysis; second, automatically analyzing relevant documents, generating summaries, and populating key information; and third, building an AI-driven dispute management platform that integrates the entire dispute resolution process onto a single platform for centralized management.

“We will be able to provide them with insights and data, enabling them to shift from reactive to proactive approaches,” Torre said.

Torre also stated that Visa's new AI tool is part of a broader suite of consumer-facing solutions. This includes a subscription management tool launched last week, which allows cardholders to cancel unnecessary subscriptions directly through a management interface.

He added that automated processing will save time and money for all parties involved in a dispute, while avoiding unnecessary procedural clutter. Visa revealed that most of the new tools will be fully operational later this year.

Torre concluded, "We genuinely believe that this approach to dispute resolution is easier to manage and resolve. We believe this leads to better outcomes for everyone."