Visa is rolling out a suite of six new artificial intelligence tools designed to overhaul the often-frustrating process of disputing credit card charges. The move, announced exclusively to CNBC, comes as chargebacks – when a cardholder contests a transaction – are steadily increasing, placing a strain on merchants, banks, and consumers alike. The goal, according to Visa, is to move beyond the largely manual, “outdated” systems currently in place and streamline a process that cost the company more than 103 million disputes globally in 2025, a 35% jump since 2019. Visa hopes these AI-powered solutions will not only reduce costs but also improve the overall experience for everyone involved in the payment ecosystem.
The rise in chargebacks isn’t necessarily indicative of more fraudulent activity, but rather a reflection of the increasing complexity of modern commerce. Online shopping, subscription services, and the sheer volume of digital transactions all contribute to a higher likelihood of confusion or disagreement over charges. What we have is particularly true as consumers become more vigilant about monitoring their accounts and challenging unfamiliar transactions. The new tools from Visa aim to address these challenges head-on, offering a more proactive and efficient way to resolve disputes before they escalate.
Addressing Disputes at Every Stage
Visa’s approach is two-pronged, with three tools specifically designed for merchants and three geared towards issuers and acquirers – the banks and financial institutions that process transactions. For merchants, the new AI capabilities focus on prevention and early resolution. One tool allows merchants to proactively address potential disputes before they are even filed, identifying transactions that might be flagged by cardholders. Another leverages generative AI to facilitate merchants respond to dispute claims more effectively, crafting clear and concise replies. A third provides merchants with more detailed order insights, helping to clarify potentially confusing charges for consumers. This is crucial, as a significant number of disputes stem from cardholders simply not recognizing a charge on their statement.
Andrew Torre, Visa’s president of value-added services, explained the need for this shift. “Some of the challenges are these back-office systems are still largely manual,” he said. “We really had to think differently about how we approach this at scale.” The company believes providing merchants with better tools to prevent disputes in the first place will ultimately save time and money for all parties.
AI for Issuers and Acquirers: Predictive Analysis and Automation
On the issuer and acquirer side, Visa is introducing AI-powered tools designed to accelerate the dispute resolution process. Predictive AI models will analyze individual cases, helping to identify patterns and potential outcomes. Another tool uses AI to automatically summarize and populate dispute forms, reducing manual data entry. Perhaps the most significant development is an AI-powered dispute platform that centralizes the entire process, providing a single location for managing disputes from start to finish. This platform aims to eliminate the fragmented workflows that currently plague the system.
The broader trend of AI adoption within the financial sector is gaining momentum. JPMorgan Chase and Goldman Sachs, for example, have both publicly stated they are utilizing AI to streamline operations, including in hiring processes. Reports indicate that these firms are leveraging AI to automate tasks and improve efficiency. BNY Mellon, meanwhile, invested $3.8 billion in technology in 2025, representing roughly 19% of its revenue, according to CNBC, signaling a widespread commitment to digital transformation.
Beyond Disputes: A Broader Consumer Focus
Visa’s investment in AI extends beyond dispute resolution. The company recently launched a subscription manager, allowing cardholders to easily cancel unwanted subscriptions directly through the platform. This move underscores Visa’s broader strategy of providing consumers with more control over their finances and simplifying the management of their payment accounts. Torre emphasized that the automation offered by these tools will save both time and money, while reducing confusion for consumers and businesses.
The rollout of these new AI tools is expected to be phased, with most features becoming generally available later this year. Visa anticipates that these changes will help to curb the growth rate of charge disputes, moving the industry towards a more proactive and efficient system. The company believes that by providing better tools and insights to all stakeholders, it can create a more seamless and secure payment experience for everyone. “We really believe that disputes in this solution makes it much easier to manage and resolve,” Torre said. “We think it has better outcomes for everyone.”
Looking ahead, Visa will continue to monitor the impact of these AI tools on dispute rates and customer satisfaction. The company is also exploring additional applications of AI to further enhance the payment experience, including fraud detection and personalized financial management. The next major update regarding the performance of these tools is expected in the first quarter of 2027, when Visa will release a comprehensive report on their effectiveness.
What are your thoughts on the use of AI in financial services? Share your comments below, and let us know how you think these changes will impact your experience as a consumer or business owner.
