Chargebackhits utilizes technologies to transmit real-time transaction data, including product information, delivery details, and company information, aiming to reduce billing confusion and prevent friendly fraud by providing issuers and cardholders with comprehensive details and enhancing call center interactions.

Chargebackhits technology transmits purchase data in real-time product information, delivery details, and company information through:

• Consumer Clarity (Ethoca)
• Order Insight (Verifi)

By integrating our system, transaction data can be shared and leveraged for three specific purposes, which include enhancing call center interactions, utilizing pre-dispute compelling evidence to prevent fraudulent disputes, and pre-dispute Glossary
The new requirements change the meaning of what Visa considers compelling evidence, including the data elements that must match previous undisputed transactions, number of prior uncontested transactions, age of previous uncontested transactions, and liability for the dispute. Compelling evidence 3.0(CE3.0) fraud dispute deflection.

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 (OI) 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 (CC) refer to the situation where the cardholder contacts their card issuer to gather information about a purchase to support a consistent Cardholder and Issuer experience.

While CE3.0 is a new rule that completely prohibits accepting fraudulent disputes by issuers if the merchant provides qualified compelling evidence.

• works through OI alerts channel
• starting April 2023

Order Insight&Consumer Clarity

Cardholders contact their card issuer to inquire about a purchase or to gather additional information, prompting the issuer to identify the transaction and request information. Chargebackhit validates the merchant’s enrollment in Order Insight or Consumer Clarity, requests the order details, and routes the request directly to the merchant, who retrieves the order details from their database and returns them via API response, which is then sent back to the issuer for review with the cardholder to determine the legitimacy of the transaction and the need for a dispute.

CE3.0 via Order Insight

When a cardholder reports fraud to the issuer, Chargebackhit validates the merchant’s enrollment in Order Insight and requests retrieval of order details for the disputed Visa transaction. If eligible, additional requests are sent for prior transactions between the merchant and cardholder for CE3.0 pre-dispute rule consideration, with merchants retrieving and returning order details via API response. VISA validates the responses based on CE3.0 rule criteria to block or deflect the fraud dispute, notifying the issuer of the outcome, and sending a notice to the merchant to indicate whether the CE3.0 attempt was successful or failed.

CE3.0 Rule Criteria

Issuers will be held liable for a 10.4 (Fraud – Card Absent Transaction) dispute when the following information is provided by the Merchant via Order Insight and the conditions are met:

• Minimum of two “historical” transactions for the same PAN settled more than 120 days and less than 365 days prior to the dispute date.
• At least two of the following data elements are the same in the disputed and historical transactions:
  • Customer Account ID
  • IP address
  • Delivery address
  • Device ID
  • Device fingerprint
• One of the two data elements must be either IP Address or Device ID or Device Fingerprint.
• No prior fraud was reported on the historical transactions. Historical transactions may have been disputed but not for any Fraud reason code.
• Product description for each item purchased is provided by the merchant on the disputed and historical transactions.

Example dispute with prevent CE dispute deflection

Prevent CE3.0 Dispute Deflection would apply:

• Dispute was raised on Sept 18, 2022 by the issuer
• The period for valid historical transactions search is therefore between 120 days (May 21, 2022) and 365 days (Sept 18, 2021).
• Three valid historical transactions were found by Visa and their references were sent to the merchant, each transaction had the same PAN and no fraud was reported on these transactions.
  • Transaction #1 April 2, 2022
  • Transaction #2 Jan 12, 2022
  • Transaction #3 Nov 5, 2021
• Merchant responded to the Order Insight Lookup Requests with data
• The following matches were found in the core data elements :
  • Account ID and Delivery Address were the same between Transaction #1 , Transaction #2 and the disputed transaction
  • IP Address and Delivery Address were the same between Transaction #3 and the disputed transaction
  • Delivery address and Device ID were the same between Transaction #1 , Transaction #3 and the disputed transaction
  • Transaction #1 and Transaction #3 are therefore considered to the valid responses and the dispute in this scenario will be blocked by Visa
• Results in 10.4 Fraud Dispute Deflection due to pre-dispute Compelling Evidence Rule criteria being met