See Fewer Chargebacks & Build Better Customer Relationships With Consumer Clarity
Did you know that cardholders disputed roughly 3 million Visa card transactions in 2016 simply because they couldn’t recognize the transaction on their statement? It’s not just a Visa problem: the figure for Mastercard is not too far from that number.
Fortunately, this is a problem that the each of the two major card networks operating in the North American market have started to take seriously. Each rolled out their own solutions to this problem in recent years.
We have Order Insight for Visa transactions. For Mastercard, however, you have help from Consumer Clarity.
What is Consumer Clarity?
Consumer Clarity is a technology platform created by Ethoca, a company owned by Mastercard. The tool, formerly known as Eliminator, is a collaboration-enabling platform.
Consumer Clarity operates in a manner similar to Verifi Order Insight, but applied to Mastercard transactions. It lets you share detailed transaction information in real time, including:
- Your name and company logos
- Your contact information
- Customer name and billing address
- Transaction total
- Transaction date
- Item names and descriptions
- Quantity of items
- Shipping confirmation
- Authorization code
- Your terms, conditions, and refund policies
- Cancelation number or refund status
The platform gives you the power to answer inquiries and resolve customer questions in real-time, rather than wait for a chargeback to be issued. In many cases, this information can also help you identify whether a complaint is invalid or illegitimate.
How Does it Work?
Consumer Clarity works best when integrated into your CRM or order management system. This allows cardholders and banks to recall relevant transaction details automatically and instantly, which can resolve disputes and prevent them from escalating into chargebacks:
- Self-Service: When reviewing their online statement, a cardholder can simply click on the transaction in question to see in-depth transaction details. This allows them to identify transactions easier, thereby preventing them from filing chargebacks.
- Real-Time Transaction Lookup: If a customer contacts their bank about a transaction, the issuer can consult Consumer Clarity and receive the relevant transaction details. Again, this will hopefully provide the details necessary to avoid a chargeback.
Don’t Go it Alone.
Get the most out of Consumer Clarity with the help of an expert third-party facilitator. Learn more now.
To illustrate, let’s say a cardholder calls the issuer with a complaint. Under the legacy system, that complaint would usually turn into a chargeback. After that, it was up to you to defend the transaction and pay all mandatory chargeback fees…regardless of the outcome.
With Consumer Clarity in place, though, the process begins with a transaction inquiry. The bank sends a request for more information, hoping to identify the transaction based on the factors outlined above. This request gets routed to the merchant’s system, where the necessary transaction information can be quickly transferred back to the bank.
That additional information may resolve the cardholder’s questions. If not, it can still give you the opportunity to refund a purchase and avoid a chargeback.
What Should I Do After a Consumer Clarity Inquiry?
Remember, though: even once you respond to an inquiry, your job is not done. Your end-goal concerning any inquiries should be to prevent further issues. For example, if you’re submitting a refund in response to the customer inquiry, you should:
- Refund the transaction immediately and make note of the refund in your CRM.
- Cancel order fulfillment (if possible).
- Cancel any future rebills if part of a recurring billing program.
- If you suspect friendly fraud, flag the customer and consider blacklisting the buyer.
- Make note of the resolution in your CRM.
- Follow-up on any pending action item to ensure the issue is resolved (if an order was noted as previously canceled or a shipment was sent, make sure the process was completed).
- Prepare a response if transaction information is determined to be insufficient, but you believe that the cardholder claim is illegitimate.
Mastercard Changes: Navigating the Chargeback Rule Changes in 2019 and Beyond
Like Visa with 2018’s VCR, Mastercard is implementing sweeping changes to its chargeback and dispute systems. Download our whitepaper to learn what changes are coming, and how to prepare.Free Download
What are the Benefits of Using Consumer Clarity?
The aim of the tool is to help merchants and financial institutions work together to prevent unnecessary chargebacks. This offers a number of benefits to you as a merchant:
Prevent Chargeback IssuancesConsumer Clarity prevents many unnecessary chargebacks by making more transaction information available to cardholders. This helps you keep your Mastercard chargeback rate low, which will reduce your operating costs and keep your processing rights secure.
Protect Your RevenueEvery chargeback you prevent means more money in your pocket. If Consumer Clarity helps cardholders recognize transactions—and prevent them from filing disputes—it translates to sales revenue you get to keep, rather than losing it to a chargeback.
Faster ResolutionThe chargeback process—from initial dispute to representment, pre-arbitration, and arbitration—can take weeks, or even months. With Consumer Clarity, you can prevent disputes from bogging down your operations.
Retain MerchandiseConsumer Clarity notifies you if a cardholder disputes a transaction before you’ve completed fulfillment. You can then halt fulfillment, allowing you to keep the merchandise in question and preventing product losses.
Prevent False DeclinesConsumer Clarity can help reduce inaccurate fraud claims. Issuers may be less likely to reject a transaction outright if they have greater access to transaction insights provided through the system.
How Do I Get Started?
You need connectivity with Mastercard systems to implement this solution and enjoy the benefits of Ethoca Consumer Clarity. After integration, you can immediately start reaping the benefits of real-time chargeback reduction.
The fastest, easiest, and most effective solution is to partner with an authorized facilitator like Chargebacks911®. We can integrate with the platform on your behalf; all you need to provide is basic merchant account details, while we handle all the complex details for you. Our clients see:
- More revenue recovered
- Reduced costs
- Increased net income
- Better resource allocation
- Long-term chargeback reduction
Want the support and saving offered by a Consumer Clarity facilitator? Or want to see how much you can save with end-to-end chargeback management? Request your free dispute analysis below and start saving today.