Chargebackhit is the world’s first reseller partner to launch Compelling Evidence 3.0. Our enhanced product, Prevent, is designed to help you reduce fraud and chargeback levels by up to Note
Our 90% chargeback and fraud reduction rate, as well as 100% dispute win rate, are based on historical data from a select group of customers using a combination of Chargebackhit products. Individual results may vary. 90% , with an impressive 100% win rate in preventing fraudulent disputes. By leveraging CE3.0 with Chargebackhit Prevent, you can:

• Provide compelling evidence
  
  Present evidence of previous undisputed transactions to shift liability to issuers, securing your revenue and reputation.
• Systematically block fraud disputes
  
  Block any future 10.4 fraud dispute using qualified transaction data, safeguarding your business against fraudulent chargebacks.
• Avoid financial losses
  
  By effectively managing fraud and chargebacks, Prevent helps you avoid losses associated with first-party misuse, dispute costs, fees, fines, and operational expenses.
• Maintain control
  
  Visa 10.4 with qualifying compelling evidence will not count against your fraud and dispute ratios, giving you better control over your metrics.

Merchant considerations for CE3.0 implementation

To take full advantage of CE3.0 and the Systematic Dispute Deflection it offers, please consider the following:

• Data review
  
  Ensure your system captures all the required data elements outlined in the CE3.0 specifications (Customer Account ID, IP address, Delivery address, Device ID, and Device fingerprint).
• Data archival and storage policies
  
  Review your data archival and storage policies to ensure the required data is available in your operational database for up to 365 days.
• IT and infrastructure capacity
  
  Evaluate your IT and infrastructure capacity to support the required 2-second response time and implement any necessary optimizations.
• API integration
  
  Prepare to integrate with the Chargebackhit API specification to leverage the power of CE3.0 seamlessly. Or see how to get started if you’re new to Chargebackhit.

How prevent CE3.0 works

When a cardholder reports fraud, Chargebackhit validates merchant enrollment in Order Insight, requests order details for the disputed Visa transaction, and sends further requests for prior transactions between the merchant and cardholder for CE3.0 pre-dispute rule consideration, with order details retrieved and returned 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 Guide
Visa’s Reason Codes follow a format of two digits, a period, and a third digit. The first two digits indicate which category the reason code falls under: 10 for Fraud, 11 for Authorization, 12 for Processing Errors, and 13 for Customer Disputes. The third digit indicates the specific reason within this category. 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