Visa has recently introduced a major overhaul to its compelling evidence rules. These changes, known as Compelling Evidence 3.0, allow merchants new opportunities to present compelling evidence to rebut first party fraud on chargebacks alleging unauthorized card-not-present (CNP) transactions. It also transforms Verifi Order Insight, Visa’s chargeback deflection tool, in ways that make it even more useful than ever before.
Visa's Compelling Evidence 3.0 guidelines now provide assistance to merchants who wish to dispute chargebacks categorized under reason code 10.4 for Fraud—Card Absent Environment. These guidelines outline steps for merchants to challenge the validity of such claims and require them to furnish evidence of at least two non-disputed and non-fraudulent CNP transactions settled at least 120 days prior to the dispute date from the same cardholder. To qualify for Compelling Evidence 3.0, the disputed transaction must match at least two core data elements to the no-disputed transactions, with IP address or device ID being one of them. The core data elements consist of customer account/login ID, IP address, shipping address, and device ID/device fingerprint.Once these data requirements are met, the merchant's success in winning the chargeback dispute is guaranteed.
Verifi Order Insight is a chargeback deflection tool that integrates with the systems of major credit card issuers and provides all parties involved with the relevant order details needed to resolve disputes before they escalate into chargebacks. Order Insight supplies the issuer's representatives with the necessary information to identify potential instances of fraud, flag suspicious cardholders, or resolve cases of confusion before a dispute turns into a chargeback. Order Insight's role in the transaction dispute process takes place before a chargeback is filed, which means that successful uses will prevent a chargeback from being filed.
Compelling Evidence 3.0 can be used pre-dispute and post-dispute. For post-dispute uses, the evidence is supplied via VROL and as a part of the normal representment process. But pre-dispute uses of Compelling Evidence 3.0 are processed through Order Insight. This makes use of Order Insight’s data-sharing faculties and includes the benefits of Order Insight’s chargeback deflection capabilities.
Compelling Evidence 3.0’s integration with Order Insight allows merchants to present the sort of compelling evidence that would be saved for representments during the pre-chargeback, Order Insight-facilitated exchange of information. It also is the first time that information from previous transactions by the same cardholder are able to be included as a part of Order Insight.
The dispute resolution guarantees of Compelling Evidence 3.0 are also a significant change for Order Insight. Under normal uses, Order Insight simply facilitates the exchange of information but ultimately requires decisions on the part of the cardholder or issuer to deflect the chargeback. Thanks to Compelling Evidence 3.0, a merchant can be assured of a chargeback deflection for any qualifying use of the rules.
The recent introduction of Visa's Compelling Evidence 3.0 guidelines and its integration with Verifi Order Insight has provided merchants with new tools and opportunities to dispute chargebacks and prevent them from escalating. These changes signify a major shift in the chargeback dispute process, providing a more efficient and effective means for merchants to resolve disputes before they become chargebacks.