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For banks, card disputes are no longer an occasional operational challenge. They are growing in volume, complexity, and risk. Global chargeback volumes are expected to increase by 24% between 2025 and 2028, reaching nearly 324 million cases annually, placing sustained pressure on dispute operations across the industry.
The rise in digital use, especially after COVID-19, and the need for strict regulatory compliance have made dispute handling more complex and time-sensitive than ever. What was once a manageable operational function is now closely tied to customer experience, compliance, and operational costs.
Still, many banks prefer manual methods to resolve disputes, even as they navigate fragmented systems. Cases move slowly through queues, prioritization is manual, and visibility into disputes remains limited. Over time, this results in:
The introduction of Pega Smart Dispute is changing how banks approach these challenges. Pega dispute management solution replaces fragmented, manual processes with rules-driven orchestration, intelligent routing, and end-to-end case visibility. Pega for banking disputes helps to move from reactive dispute handling to an automation-led approach.
As dispute volumes rise and resolution times lengthen, customer trust erodes. In a study, 66% would consider switching banks if the dispute process were tedious or unclear. On the other hand, when the disputes are resolved smoothly, customers are most likely to remain loyal.
Let’s see how a credit union faced increasing dispute volumes, fragmented workflows, and limited visibility—and why it chose to modernize its dispute operations to improve efficiency, control risk, and scale for future growth.
A leading U.S.-based credit union serving more than 500,000 members found its card dispute operations under increasing strain. As transaction volumes grew and member expectations for faster resolution rose, the institution’s existing dispute-handling model struggled to keep pace.
The impact extended beyond operational efficiency. Members experienced longer wait times for provisional credits and dispute updates, while internal teams faced rising workloads driven by duplicate disputes, manual correspondence, and repeated follow-ups. At the same time, compliance teams faced increasing pressure to meet regulatory SLAs without reliable, system-enforced controls.
This realization prompted the credit union to return to Pega, with EvonSys brought in as a trusted implementation partner to help re-evaluate and redesign the dispute operating model using Pega Smart Dispute.
EvonSys carried out two phases:
The measurable outcomes include:
Card disputes are no longer back-office exceptions. They sit at the intersection of customer trust, regulatory compliance, fraud mitigation, and operational efficiency. As digital transactions continue to grow, dispute volumes will increase. Modern card dispute management requires:
When these capabilities come together, the card dispute process shifts from manual, time-consuming to intelligent, outcome-driven. However, achieving this level of automation requires a unified, bank-designed dispute management solution that orchestrates people, data, and decisions across the entire dispute lifecycle.
Pega for banking disputes delivers a unified banking dispute management solution by transforming how issuers handle disputes through intelligent automation. Built on the low-code Pega Constellation architecture, the Smart Dispute Agentic Automation streamlines the user experience. Let’s explore how Pega modernizes card dispute management:
End-to-End Lifecycle Orchestration
Card disputes typically move through intake, validation, fraud review, network processing, customer communication, and final resolution. In many institutions, these stages operate across disconnected systems.
But, Pega Smart Dispute Agentic Automation uses AI to offer straight-through processing, eliminating manual handoffs.
Intelligent Decisioning and Duplicate Prevention
Manual environment struggles to identify duplicate disputes, potentially delaying the investigation process.
Pega introduces automated duplicate detection across historical and in-flight cases. This reduces unnecessary operational effort while ensuring consistent, policy-aligned outcomes across all card disputes.
Built-In Compliance and Audit Readiness
In high-volume card dispute environments, compliance must be operationalized, not managed manually. Pega for banking disputes, powered by Smart Dispute Agentic Automation, systemically enforces card network and regulatory mandates across the dispute lifecycle.
The platform embeds dispute processing rules for Visa, Mastercard, AMEX, and ethoca/Verifi, with biannual updates aligned to network rule changes, ensuring reason code validation, evidence workflows, and representment timelines are automatically governed within the case flow.
Unified Case Visibility Across Teams
Pega for banking disputes provides:
This eliminates fragmented visibility and reduces servicing inquiry volumes.
Ready to Modernize Your Card Dispute Management?
Evonsys helps financial institutions design, implement, and optimize Pega-powered dispute frameworks tailored to their operational and regulatory needs.
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