Preventing Chargebacks & Disputes With Order Insight from Verifi & Visa
Let’s face it: as a merchant, chargebacks can be the bane of your existence.
Disputes are nearly impossible to predict. They’re difficult to regulate, and consistently cost far more money than you hope. Worse, chargebacks will pile up whether you respond to them or not. Plus, if you get too many chargebacks, your processor or acquirer might cancel your account altogether.
Enter Verifi Order Insight.
Verifi, a Visa company, launched Order Insight to help tackle the growing chargeback crisis. Now, with this tool available, you have a powerful asset to stop many types of chargebacks before they are ever filed.
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What is Order Insight?
- Order Insight
Order Insight works as a plugin for the Visa Resolve Online (VROL) platform. The service offers automated, real-time data communication between issuers and participating merchants, letting merchants prevent many chargebacks before they happen.
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If a cardholder called the issuer with a complaint under the legacy chargeback system, that complaint usually turned into a chargeback. After that, it was up to the merchant to defend the transaction and pay all mandatory chargeback fees, regardless of the outcome.
There’s a problem here, though. Many of these disputes were legitimate transactions, but the customer simply couldn’t recognize the transaction in their records. Maybe the seller’s billing descriptor was confusing, or the customer forgot about making a purchase. Either way, the result is the same: the merchant got hit with a chargeback.
However, enrolling in Order Insight (formerly known as the Visa Merchant Purchase Inquiry, or VMPI) gives you the power to answer inquiries in real time. Automatic responses immediately provide additional information such as shipping confirmation, cancellation number, or product name. In many cases, this information—called a transaction inquiry response—identifies whether a complaint is invalid or illegitimate.
How Does Order Insight Benefit Merchants?
Order Insight from Verifi offers an incredible opportunity to stop chargebacks before they’re ever submitted.
According to Visa, cardholders initiated 2.9 million disputes in 2016 solely because they couldn’t recognize the transaction in question. Since then, internal data from Chargebacks911® suggests there’s been a 16% compound annual growth rate (CAGR) in chargeback issuances. In other words, the current figure is probably closer to 7 million.
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Verifi Order Insight could eliminate most, if not all, of these disputes. The plugin makes it possible to painlessly resolve many cases before the issuer officially files a chargeback. Order Insight even allows you to issue a credit straight to the cardholder if this is the best way to resolve the situation. It can offer:
- Real-time data communication between issuers and cardholders
- Automatically shuts down specific complaints before they become chargebacks
- Instant fraud notifications
- Enhanced customer service
In short: Order Insight can be your ticket to prevent a lot of chargebacks.
How Does Order Insight Work?
With a card transaction, a certain amount of data is available to all parties involved. Not all this information may be transmitted, though. Concerns about efficiency or privacy mean that only partial information gets transmitted between banks, merchants, and card networks. The catch is that much of the detailed data needed for chargeback resolution won’t be shared.
If a customer disputes a charge, these additional transaction details are often the compelling evidence you’d need to justify the purchase. Under the litigation-based legacy system, this data would not even be introduced until after the chargeback had been filed.
Order Insight, however, automatically transmits this information in response to the initial inquiry or complaint. To illustrate, let’s assume a buyer completes a purchase, but later contacts the issuing bank, claiming not to recognize the transaction on their statement.
This would have likely resulted in a chargeback under the legacy system. With Order Insight, however, the bank can recall critical information in near real-time. The buyer is provided purchase details which will ideally be enough to prevent the chargeback.
Depending on the data provided, the plugin can stop many disputes in their tracks. Complaints that cannot be successfully resolved through Order Insight will proceed as a normal chargeback.
A chargeback-free future is just a few clicks away. Enroll in Order Insights through Chargebacks911®.
Preventing chargebacks through this platform is a win-win for you and your customers. It’s much more cost-effective than fighting disputes. Plus, it will lead to greater customer satisfaction in the long run.
Sharing Information With Order Insight
When sharing information with Visa, you can choose precisely what and how much to send through Order Insight. Any information you share is completely secured and will never be replicated. So, keep in mind that it is generally a good idea to share as many details as possible.
Anything the issuer can use to jog a cardholder’s memory about the original transaction is necessary information that could spare you a chargeback. The information you might share through Verifi Order Insight could include:
Essentially, you will want to include anything you think might help with the process and prevent a chargeback. You can even include shipping and tracking information and proof of delivery.
The goal here isn’t to call the customer a liar. Instead, you’re gently reminding them of what they ordered, when, and how they paid in order to de-escalate the dispute. Presume good faith on the part of your customers, and they’ll be more likely to show you the same courtesy.
Additional Steps With Order Insight
Once an Order Insight response has been submitted, it’s mostly out of your hands. The initial response you provide may — or may not — be final. That said, you may want to consider implementing preventative measures to ensure there are no further issues involving this customer
We recommend that you:
- Follow up on any pending actions, such as ensuring that cancellations are fully processed.
- Prepare to respond if transaction information is deemed insufficient.
- 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.
Order Insight for merchants even plays a vital role beyond your initial response. Data generated by Verifi Order Insight allows in-depth analysis to better understand your general chargeback situation.
It’s true that data analysis adds additional steps to your dispute operations. However, it provides critical insights. You can examine how well your inquiry responses perform and apply those insights to see a long-term reduction in disputes.
Need help interpreting chargeback data? Why not ask the experts?
Order Insight Can Help Fight Chargebacks
Order Insight is a powerful tool that any Visa merchant can integrate with their existing account. As promised, the plugin does allow you to avoid many types of chargebacks and resolve disputes swiftly and easily within a centralized framework.
The types of chargebacks Order Insight can help you avoid generally result from errors and oversights. These may be on your part, or on your customer’s.
No Single Solution is Perfect
Order Insight can help you prevent many of the chargebacks listed in the previous section. However, you could still be on the hook for chargebacks resulting from criminal fraud and deliberate friendly fraud.
The former can be mitigated or prevented with practical fraud detection tools and preventative best practices. The latter, unfortunately, cannot.
Friendly fraud is not committed by a professional criminal or groups of fraudsters on the dark web. Instead, friendly fraud is a post-transactional form of fraud committed by legitimate customers. As things stand now, there is no way to fully prevent this from happening, as it is challenging to spot and even harder to prove.
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Order Insight will reduce the number of illegitimate disputes resulting from miscommunication or by accident. Often, simply reminding the customer of the purchase and details is enough to deter such disputes from devolving into chargebacks.
Intentional friendly fraud, on the other hand, is another story. Also known as cyber shoplifting, this form of post-transactional fraud happens when a customer files a dispute to get something for free.
Friendly fraud is the most challenging type of fraud to detect, let alone prevent. So, even though we encourage merchants to get on board with Order Insight as soon as possible, we want to remind everyone not to put all their eggs into one basket. The truth is that there is no substitute for a multi-tiered, comprehensive chargeback management plan.
Getting Started With Order Insight
It’s important to emphasize that Visa Order Insight is optional. That said, it’s in your best interest to enroll. If you choose not to participate, all inquiries may progress to a dispute automatically.
You need connectivity with Visa’s systems to implement this solution and enjoy the benefits of Visa Order Insight. Once your business is integrated, you can immediately start reaping the benefits of real-time chargeback reduction.
The fastest, easiest, and most effective way to get started is through a Visa-authorized facilitator like Chargebacks911®, who will integrate with the platform on your behalf. In most cases, you’ll only need to provide basic merchant account details. We’ll handle all the other complex elements of your integration process for you.
Our clients enjoy the benefits of easy, instant integration with the Visa Resolve Online platform. We can offer:
- More revenue recovered
- Reduced costs and better resource allocation
- Increased net income
- Long-term chargeback reduction
Whether you’re in the market for a facilitator or end-to-end chargeback management, Chargebacks911 offers the services you need. Ready to see what we can do for you? Request your free dispute analysis below and start saving today.
What is Order Insight?
Order Insight is a plugin from Verifi, a Visa company. It offers merchants an incredible opportunity to stop Visa chargebacks before they’re ever submitted. According to Visa, cardholders initiate roughly 3 million disputes every year solely because they can’t recognize the transaction in question. Visa Order Insight could eliminate most, if not all, of these disputes.
What Information Can I Share with Order Insight?
You might share merchant information, customer information, order details, and product specifications. When sharing information with Visa, merchants can choose precisely what and how much they send through Order Insight. Any information you share is completely secured, and will never be replicated, so keep in mind that it is generally a good idea to share as many details as possible.
Can Visa Order Insight prevent chargebacks?
Yes. Order Insight is a powerful tool that any Visa merchant can integrate with their existing merchant account. As promised, the plugin does allow merchants to avoid many types of chargebacks and resolve disputes swiftly and efficiently within a centralized framework. The chargebacks Order Insight can help you avoid generally result from error, either on your part, or your customer’s.
How can I sign up for Order Insight?
You need connectivity with Visa’s systems to implement this solution and enjoy the benefits of Visa Order Insight. Once your business is integrated, you can immediately start reaping the benefits of real-time chargeback reduction. The fastest, easiest, and most effective way to get started is through a Visa-authorized facilitator like Chargebacks911®, who will integrate with the platform on your behalf.