The streamlined toolbox that’s revolutionising financial institutions’ fraud and dispute processes

For most banks, fraud and dispute management is a highly manual process, from intake through investigation to recovery. Given the stringent regulatory oversight, the chargeback process is not only vital for the account holder experience but also crucial for consumer protection. However, the conventional methods of managing fraud and disputes impose significant limitations on financial institutions.

Standard metrics like chargeback submission rate, chargeback win rate and total write-offs are commonly used to measure success. Yet these figures barely capture the full financial impact of fraud and disputes on issuers.

After decades at a top two bank, Quavo’s founders set out to revolutionise the industry. They developed a solution that has transformed the approach for hundreds of financial institutions, returning nearly $1 billion to account holders in the process.

Quavo’s automated dispute management solution, QFD®, is designed by bankers for bankers, focusing on a seamless user experience for both issuers and account holders. This solution enhances operational efficiency, reduces losses and ensures regulatory and network compliance by transforming a historically imprecise, inefficient manual process into a modern, compliance-focused, revenue-generating system – without compromising on the account holder experience.

Quavo’s QFD® has revolutionised how financial institutions handle losses during fraud and dispute processes, as well as how they measure success. Chargeback submission rate, chargeback win rate, and total write-offs only scratch the surface: Quavo introduced a new metric, “recapture” – the prevention of financial loss at various stages through automated processes that guide users toward optimal outcomes.

Quavo’s QFD® capitalises on five key operational recapture opportunities:  

• Denying first-party fraud investigations 
• Rejecting accountholder liabilities 
• Facilitating account-holder dispute withdrawals 
• Enabling merchant refunds leading to dispute withdrawals 
• Achieving successful chargeback outcomes 

By leveraging Quavo’s Recapture technology, clients have achieved remarkable results. Industry averages for recapture are approximately 67 per cent for billing disputes, 63 per cent for fraud disputes, and an overall average of 64 per cent. Quavo’s clients, however, boast an impressive 83 per cent overall recapture rate, with top clients reaching up to 95 per cent.

Even in the member-centric credit union sector, Quavo’s clients achieve an average recapture rate of 76 per cent. This exceptional recapture rate translates to reduced losses by over 50 per cent compared with industry averages. From January to June 2024, Quavo’s client portfolio recapture rate increased by about 6 per cent.

Transitioning from manual processes to AI capabilities and automation allows banks to enhance operational efficiency, minimise losses, and elevate the customer experience. This shift also helps banks ensure regulatory and network compliance, reduce recovery times and optimise resources, as fraud and dispute volumes continue to rise. Quavo’s pioneering contributions continue to set industry benchmarks and redefine success metrics in fraud and dispute management.

By setting new standards in fraud and dispute management, Quavo continues to lead the industry, ensuring that financial institutions can efficiently and effectively manage fraud, protect account holders and enhance overall operational performance.

To learn more about how to transform your fraud and dispute management, visit www.quavo.com.

By Joseph McLean, CEO & Co-Founder and Julia Lum, Marketing Communications Specialist, Quavo