A card issuer may initiate Discover / Novus credit card processing disputes on its own behalf or on behalf of its customers. The issuer starting a dispute needs to forward all relevant documentation in support of the dispute to Novus / Discover at the time it is initiated. Discover receives, collects and compiles data and paperwork regarding any disputes from issuers and then sends dispute notices to merchant banks and retailers notifying them of the disputes. Upon receipt of all required or available evidence relevant to the dispute and the transaction, Discover resolves it and informs the parties of its decision.
Depending on the kind of dispute and the response from the payment processing bank or retailer, Discover investigates and resolves the dispute, following receipt of the processor's or retailer's response.
Discover / Novus will not contact a customer directly to obtain data or documentation in support of a particular dispute. If, during the investigation process, it determines that any paperwork provided by the Novus credit card processing acquirer or retailer requires review by the customer, it will forward the documentation to the issuer who will then provide to its cardholder.
Issuers are required to use the Discover System to initiate all disputes, either on their own behalf or on behalf of their cardholders. Consumers cannot do it themselves and an issuer cannot advise a cardholder to contact Discover directly regarding a claim. The issuer must obtain information regarding the dispute, including all relevant documentation, from the customer. They are also responsible for forwarding to their customers all Novus credit card processing acquirer and retailer responses. If no accurate and complete information is obtained from the consumer, the result may be that Discover resolves the dispute against the issuer.
Similarly, unless it is required by law, Discover / Novus will not contact an Novus credit card processing acquirer's merchant directly regarding a dispute. If a processor or retailer wants to review the supporting paperwork submitted by an issuer, they will need to request it from Discover. In addition, Discover may initiate a dispute if the acquirer or retailer fail to comply with their obligations.
Discover will notify the parties involved in a dispute of its decision within five business days of receiving the complete documentation from the Issuer and from the processor or card acceptor, in each case, as required under its rules. If the losing party protests the resolution of the dispute, it can appeal the decision by initiating a dispute arbitration request.
(Read more here)