As digital payments and online shopping take hold, the industry has seen a sharp increase in customer chargebacks. In fact, last year, Americans disputed $83 billion in charges, with the cost of handling disputes increasing by 16% compared to 2022. Those costs are likely to rise.
FIntegrate Technology was recently featured in York Public Relations’ 2025 State of Fintech Report. FIntegrate’s leadership, Kris Bishop, CEO, and Jeff Harper, Chief Growth Officer, were interviewed. They discussed how the surge in disputes creates a significant burden for financial institutions already striving to attract deposits, increase debit card usage, and generate new revenue streams—and how they can mitigate risks related to transaction accounts.
Bishop/Harper: Financial institutions face several significant challenges when it comes to managing disputes, provisional credit, and related chargebacks. One of the primary issues is the manual or semi-manual nature of these processes, which can be time-consuming and prone to errors. The extensive requirements for dispute initiation, tracking, resolution, and notification can quickly become overwhelming for staff. Another challenge lies in maintaining compliance with regulations while efficiently handling various types of disputes. For example, managing Reg E disputes, which Involve electronic transactions such as card, ATM, ACH, and remittance transfers, requires adherence to specific regulatory guidelines. Similarly, credit bureau disputes and unauthorized check transactions each come with their own set of complexities and compliance requirements.
Furthermore, financial institutions must balance the need for thorough dispute resolution with the imperative of providing excellent customer service. The time-consuming nature of these processes can potentially detract from customer support and service quality if not managed effectively.
Bishop/Harper: FIntegrate’s FusionDMS provides a concise platform that centralizes management of all types of disputes, streamlining workflows and improving productivity. One of the key features that makes FusionDMS unique is its modular approach.
The system includes specialized modules for different types of disputes, such as the Reg E Dispute Management Module, Credit Bureau Dispute Management Module (with e-Oscar integration), and ACH and Check Transaction Module. This modular structure allows banks to tailor the solution to their specific needs.
FusionDMS stands out by simplifying and expediting the administration of various dispute types. For instance, the Reg E & Dispute Management module promotes more structured management and compliance policies from a single, integrated platform.
The system’s ability to increase operational efficiency, improve tracking and reporting, and ensure regulatory compliance while enhancing customer support sets it apart in the industry. By automating many of the manual processes associated with dispute management, FusionDMS allows financial institutions to focus more on customer service and less on administrative tasks.
Bishop/Harper: First and foremost, implementing a consolidated dispute management platform can streamline operations and reduce resolution times. leading to increased customer satisfaction. By automating manual processes, financial institutions can minimize errors and ensure more consistent handling of disputes. This not only improves accuracy but also allows staff to focus more on customer interactions rather than administrative tasks. The use of a centralized system also enables better tracking and reporting, which can help identify trends and areas for improvement in the dispute resolution process.
Moreover, adopting a platform that ensures compliance with various regulations (such as Reg E for electronic transactions) can help financial institutions avoid costly errors and maintain customer trust. Prompt and accurate resolution of disputes, whether they involve credit bureau reporting unauthorized check transactions, or electronic transfers, demonstrates a commitment to customer service.
Bishop/Harper: One primary issue is the complexity of handling various Mages of delinquencies, from early stage to charge-offs, which often involves manual or semi-manual processes that are time-consuming and error-prone.
Another challenge lies in accurately predicting the risk of charge-offs for delinquent accounts, which is crucial for allocating resources effectively. Furthermore, institutions struggle with streamlining communication across different channels and automating complex procedures to improve efficiency and reduce costs.
The need to consolidate collections, loss mitigation, and recoveries into a single platform while maintaining compliance with regulations adds another layer of complexity. Lastly, financial institutions face the challenge of balancing rigorous collection practices with maintaining positive customer relationships. This requires clear communication, educational initiatives, and simplified procedures to enhance the overall client experience while effectively managing defaults.
Fintegrate’s FusionCRS consolidates collections, loss mitigation, and recoveries into a single platform and database, simplifying the handling of various types of relationships regardless of their current state of status.
One of FusionCRS’s key features is its Charge-Off Risk Score (CORS) model, which uses a proprietary algorithm to forecast the risk of charge-offs for every delinquent account daily. This predictive capability allows institutions to guide accounts into predetermined automated processes, enabling skilled staff to focus on critical delinquencies with higher risk levels.
FusionCRS also automates complex manual procedures, leading to significant cost savings and improved efficiency. The system streamlines communication across various channels and provides productivity-boosting tools that allow collection resources to handle a larger number of accounts effectively.
The software includes a Recovery Accounting Module (RAM) that eliminates the need for manual tracking of recovery assets and reliance on spreadsheets. RAM oversees ledger balances, monitors interest accruals, and records user-defined recovery and expense transactions for charged-off accounts.
Additionally, FusionCRS offers customizable dashboards and extensive reporting capabilities, automating the creation of monthly board reports and quarterly CALL reports. This feature saves staff time and provides easy access to specific information needed for efficient resource allocation.
FIntegrate introduced FusionLRS as an innovative solution for legacy data conversions and research, addressing several critical challenges faced by financial institutions, including the high costs and time associated with traditional data conversion methods, which can range from $40,000 to $250,000 on average.
FusionLRS offers a more cost-effective and efficient approach to converting various types of financial data, such as check images, documents, statements, and reports. One of the key benefits is its ability to centralize management, enabling in-house research of legacy data without full conversion processes. This feature helps mitigate risks by identifying and resolving image and data issues in advance, ensuring a smoother transition and reducing potential complications during the conversion process.
Developed by data conversion pioneers with experience in managing up to 300 conversions in a single year, FusionLRS leverages extensive industry knowledge to provide a comprehensive solution for financial institutions. By streamlining the conversion process and allowing for better management of legacy data systems, FusionLRS helps institutions avoid unnecessary costs associated with maintaining multiple legacy systems, which can typically range between $10,000 and $100,000 yearly.
FIntegrate Technology is a leading provider of financial technology solutions that automate and simplify collections, recoveries, and transaction disputes for financial institutions. Our suite of products includes:
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