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Overview of Chargebackhit's fraud and dispute management system, which leverages instruments in the pre-dispute, dispute, and post-dispute phases

Chargebackhit is a unified source of data with a layer of proprietary technology aimed at boosting the efficiency and Glossary
ROI is a ratio that shows the return on an investment in relation to its value.
of chargeback prevention. The two main chargeback Glossary
Chargeback notifications are messages that the merchant receives informing them that a chargeback has occurred or will soon occur.
networks are Visa (Verifi) and Mastercard (Ethoca). Each network includes numerous issuing banks, with some banks included in both networks; at the same time, coverage is provided by Visa/Mastercard networks worldwide. The solutions remedy to your chargebacks and fraud are given below:

Using our direct connection to providers, we can support merchants by assisting at one of the first stages in the dispute-resolution process, helping you to resolve the issue without investing much time into analyzing your disputes and to cut your chargeback costs in addition.

Our system helps merchants to prevent a chargeback before the dispute process is initiated. For instance, a customer files for a chargeback, and the issuer, instead of immediately filing a chargeback, sends the notification directly to the merchant through our solution, requesting more details about the transaction nature. A merchant either provides details for the purchase or initiates a refund, notifying the issuing bank and thus avoiding a chargeback.

Several approaches allow you to prevent chargebacks and remain on the side of Visa and Mastercard:

  • Using Glossary
    A tool that allows merchants to stop Visa chargebacks before they are initiated by the customer. Merchants integrated with OI (formerly referred to as Visa Merchant Purchase Inquiry - VMPI) can provide card issuers with the detailed company, customer, order, and product information in real-time.
    Order Insight
    and Glossary
    Consumer Clarity (formerly referred to as Ethoca Eliminator) is a system that allows the merchant to provide details of the transaction to the issuing bank to prevent unlawful chargebacks.
    Consumer Clarity
    chargeback merchant services through seamless Chargebackhit integration. Once a customer sends a chargeback request or clarification of the transaction to their issuing bank, a bank requests the details from Visa, and Visa requests them from the merchant. The merchant can provide all the necessary data automatically, using Consumer Clarity, Order Insight, and Chargebackhit as a communicator between the issuing bank and the cardholder on one side, and the merchant on the other, which can Guide
    Chargebackhit system prevents disputes and protects revenue by providing enriched transaction information to issuers and customers in real-time.
    a possible chargeback. Compelling evidence 3.0 in addition to Order Insight provides the advantage of increasing the likelihood of successfully blocking or deflecting fraud disputes, thereby reducing the costs and resources needed to respond to disputes.
  • Guide
    Resolve disputes efficiently with directed refunds or automated resolutions for Visa using Chargebackhit.
    integrates RDR for auto-resolve, CDRN and Ethoca with a refund on the merchant side. Integration with Verifi ( Glossary
    RDR is a program from Visa that allows merchants to automatically process returns to resolve certain disputes.
    & Glossary
    The CDRN is Verifi’s proprietary solution, this platform is one of several alert networks that intercept chargebacks on your behalf.
    ) and Ethoca (Mastercard&Issuers alerts) provides a service to resolve chargebacks. This allows preventing chargeback claims from becoming disputes without exceeding the Guide
    Thresholds refer to the predefined levels of chargeback activity that trigger alerts, allowing merchants to take action to prevent chargebacks before they become a significant issue.
    , chargeback ratios, payment processing fees, dispute resolution costs, and program compliance fines.

In conclusion, preemptive notification tools Order Insight and Consumer Clarity are combined into prevent to preempt disputes, the data can later be compiled into Guide
Maximize win rates for all major card brands and recover revenue by building a custom compelling evidence response through dispute representment in Chargebackhit.
to fight chargebacks.

Chargebackhit service is an API that provides alert notifications. Visa, Mastercard or Issuer send a JSON request to the Chargebackhit API, which in turn sends an alert to the merchant.

For each product, the alert processing flow is approximately the same:

  1. Convert the alert into an internal format and store it in the database.
  2. Check for duplicates and exclusion rules.
  3. Generate a request for the merchant and send a notification.
  4. Handle the merchant's response and respond to the provider accordingly.

Alert types

Chargeback notifications are messages that the merchant receives informing them that a chargeback has occurred or will soon occur.
Chargeback alerts
are delivered to the merchant before a claim is made, giving them a chance to avoid it.The alerts inform the merchant that a chargeback is pending but has not yet been filed. In this case, the merchant may take independent actions to avoid the chargeback, such as a voluntary refund, and pass this information on to the issuer.

By bundling all the alerts on the market, we can assist merchants with one of the first stages of the dispute-resolution process to resolve the issue without investing significant time into analyzing your disputes while also reducing your chargeback costs.

Alerts come from issuers or card schemes, and they are alerts issued by the user who initiated a chargeback. An overall simplified process for all types of alerts looks as follows:

  1. The cardholder contacts the issuing bank to dispute a purchase.
  2. Issuer returns notifications to the providers directly or via card schemes.
  3. Providers notify Chargebackhit of the upcoming dispute.
  4. Chargebackhit sends a request to the merchant.
    Chargebackhit notifies the merchant of the incoming chargeback. Then the merchant can decide whether to refund the customer, stop the order fulfillment, update the order information, or challenge the disputed transaction depending on the alert type.
  5. The merchant takes the necessary actions, such as matching the alert to a database transaction or issuing a refund, and then communicates the action taken to Chargebackhit.
  6. The response is sent back to Chargebackhit.
  7. Chargebackhit responds according to the alert type.
    Assuming the merchant wants to avoid a chargeback, they refund the purchase and/or stop order fulfillment.
  8. The issuer receives the information, and under certain conditions, can stop the chargeback process.
  9. The cardholder receives information or a response from the issuing bank that the money will be returned soon or receives additional information in real-time about the transaction. Obtaining information can also help to stop the chargeback process.

Chargebackhit has a unified API for all kinds of alerts on the market. Currently, we offer the following products:

Cardholder Dispute Resolution Network’s (CDRN) unique and patented, closed-loop process directly integrates with top issuers and provides unmatched service quality and accuracy for merchants and issuers to resolve disputed payments, dramatically minimizing chargebacks and cardholder dissatisfaction. CDRN receives immediate notifications from issuing banks about cardholder issues.

Verifi CDRN alerts lead to the freezing of the chargeback process for 72 hours.

Before a dispute can be registered, Visa will require issuing banks to make an Order Insight inquiry into the transaction. Order Insight sends transaction data from the merchant as it is gathered in real-time. This data contains delivery confirmations, purchasing device IDs, and even customer support interactions that link a cardholder to the purchase. Order Insight prevents disputes and friendly fraud by aiding cardholder recognition.
Additional transaction data is displayed to cardholders in real-time on their online statement. Consumer Clarity helps issuers determine if a cardholder has made a purchase, both via contact center or mobile device in real-time (such as Order Insight).
When a fraudulent transaction is confirmed, issuers send a fraud alert called a TC40 statement. TC40 tracks stolen card numbers and other identifiers for fraudulent transactions. The VISA product also includes dispute notifications for already-issued chargebacks, which you can receive more quickly than from the bank’s acquirers.
Disputes that have not been declined due to Consumer Clarity requests are routed through the issuer’s network and global Mastercard (including Mastercard Collaboration) alert network before they become chargebacks. Merchants should check these alerts through their payment processor gateway. Refund alerts do not affect merchant accounts as negatively as chargebacks. Typically, merchants will refund, stop shipping, cancel subscriptions, etc.
If a dispute survives an Order Insight request, Visa has provided a “pre-dispute” phase where transaction details are sent to the merchant for automated review. Here, the merchant specifies certain conditions, the fulfillment of which can result in an automatic refund via Visa Response Online (VROL). Rapid Dispute Resolution (RDR) provides an immediate refund to the cardholder.
The key value of Compelling evidence in Chargebackhit system is to help merchants prevent disputes by providing supporting evidence for disputed transactions, which can potentially lead to a more favorable outcome.

Alerts types are categorized as:

Type Definition
inquiry Chargebackhit sends you inquiry requests initiated by the issuing bank, and we return additional merchant data to the Visa issuer when we match your available transaction data. If a transaction does not match, we send default data.
init-refund Chargebackhit asks the merchant to refund.
resolved Chargebackhit notifies regarding the resolved dispute. The transaction is automatically credited to the cardholder, and chargeback is prevented.
prevented Chargebackhit issues a notification indicating the successful dispute prevention, originating from the inquiry .

Use the direct delivery of post-authorization fraud and dispute notifications to minimize payment risk in Chargebackhit.

Type Definition
fraud-notification This is a Visa notification of a confirmed fraud event by the cardholder. No refund should be processed. For best practices, we recommend suspending subsequent billings for the cardholder.
dispute-notification This is received for all Visa fraud and non-fraud disputes from a single course. For best practices, we recommend tracking dispute rates and improving link analysis, modeling, and dispute analytics.


Type Products Actions
  • Order Insight
    • Compelling evidence 3.0
  • Consumer Clarity
Alerts that require a response and transmission of additional data.
  • Matching
  • Response with the data
  • Timeout for prevent
  • Order Insight
    • Compelling evidence 3.0
  • Consumer Clarity
Successful prevention of disputes.
  • Matching and providing with response
  • CDRN
  • Ethoca
Alerts that require a response and refund.
  • Matching
  • Refund the transaction or resolve with the cardholder
  • RDR
Post-factum notification of the pre-dispute.
  • Matching and providing with response
  • Verifi Inform
Notifies about the confirmed fraud case.
  • Matching and providing with response
  • Verifi Inform
Notifies about the dispute.
  • Guide
    Internal logic for quick matching of alert data by the system in real-time.
    and providing with response


Summarize complex Chargebackhit API outcomes and responses, ensuring accurate transaction reconciliation.