In this digital era, if I say that banks are following archaic process to resolve the dispute, you might not be believing me!
Now, let me give you simple used case that explains this archaic process of dispute resolution currently present in the banks.
I'm happy customer of bank and like to do lot of shopping; One fine day while i was enjoying my morning office tea in network, I received email stating that i have purchased $758.00 of cosmetic. More impotently the purchase was made online in some store in Spain. I started panicking and urgently called my wife if she is aware of this transaction which she declined straight away.
It was time to call Bank to find out what is happening with my credit card. I am sure most of people have to wait long hours for talking to customer care; but, let me tell you one fact that once it comes for fraud; Banks are quite alert and responds to communication from customer.
I was connected quickly with customer representative and she was prompt to respond me that my card has been compromised. I started saying quickly, how? when? bla bla . She calmed me down and said she is going to raised dispute for this fraudulent transaction. There was no reason to suspect anything wrong in that; but, things started looking quite dark when she started explaining the processes that they follow resolve the dispute.
She stated that it can take up-to 90 days to resolve the dispute; in addition to this she calmed me down by saying that during this period, she is going to credit the refund to my account. In case dispute does not go in my favor this fund will be reversed.
Still, some where this 90 days of lead time was bothering me. I researched more on this subject, and found that dispute process is quite a long process. Banks raises the dispute against the merchant, and schemes facilitated this communication. These communications are not real time, instead dependent of nightly batch. So, any single communication is going to take at least 1 day of time. In this digital era, it is quite surprising that still banks are using these slow procedures to process the dispute.
Now, block chain can solve this infinite delay in dispute processing and it does not require so many people in this communication. Since Block Chain technology ensures that transaction cannot be compromised, it will certainly help to reduce the number of dispute that gets raised. Fraud activity will slow down with evolution of blockchain technology.
At the end, actually customer is going to get benefited because once banks start adopting the blockchain technology for transaction, it will reduce the overhead of dispute processing on the bank.