Chargebacks can weigh on a merchant’s financial reputation, especially when it begins adding up. Out of everything to focus on within your business, the last thing you need are multiple chargebacks nagging at you.
High-risk merchants are more vulnerable to disputes and chargebacks. These businesses need more tools and resources to keep their chargeback rates low.
Major credit card companies aim to make finances fair for both businesses and consumers. The interests of merchants and customers can clash, which put credit card companies in the position of mediation. Disputes and chargebacks are where credit card names become the most involved. Like judges, they aim to settle disputes justly and further discourage foul play.
Visa has been leading the way to a more effective chargeback prevention protocol. One of their major programs is Order Insight, previously known as the Visa Merchant Purchase Inquiry (VMPI). Order Insight has been living up to its promises and has decreased a significant amount of chargebacks for merchants.
However, keeping up with Order Insight and other updates from Visa can be confusing and overwhelming for businesses. So what do you as a merchant need to know about how Visa’s Order Insight affects you?
What is Order Insight?
Order Insight is a dispute notification tool. This means that it alerts merchants when a customer files a dispute.
Why is this important?
With disputes come chargebacks, which negatively affects a merchant’s reputation. Too many chargebacks can result in loss of business. Additionally, each chargeback costs businesses fees and time.
Without the right tools, businesses don’t know a dispute has been filed until it is too late. This is due to customers going to their issuing bank with a merchant-related issue rather than the merchant themself.
Order Insight fills in the gap so that businesses are not in the dark with their disputes. Dispute notifications give merchants time to resolve issues with customers and have chargebacks reversed.
There are two primary pillars that make up Order Insight: Notifications and inputting additional information to back merchants up.
If a merchant participates in Order Insight, the program will be able to alert them of disputes that happen with a Visa cardholder. These notifications are specifically known as Prevention Alerts.
Prevention Alerts are only available through participating issuing banks, which not all do. However, merchants have found that there has been enough participation to provide more visibility to chargebacks than before.
Providing Additional Information
In dispute resolution, businesses are able to reverse chargebacks by providing enough evidence that they are not in the wrong. This information can be referred to as “compelling evidence”.
However, Visa saw a chance for what can be used as compelling evidence before a dispute is officially filed. This “proactive representment” or “additional transaction details” is an ability unique to Order Insight. The program will automatically provide evidence supporting the merchant to stop a chargeback in its tracks.
Proactive representment doesn’t work for all disputes, however. They only work for disputes that are filed through Visa Claims Resolution (VCR). VCR is an updated workflow in which disputes go through. The previous system, the legacy system, is still used for certain disputes.
Order Insight and Visa Claims Resolution
Order Insight will automatically send in corresponding evidence once a dispute is filed. This is only if a dispute is going through VCR. A chargeback is then prevented.
Other disputes, the ones that go through the legacy system, don’t allow a chance for evidence until after a chargeback is filed. The merchant has to go through the system to reverse the chargeback.
Order Insight’s proactive representment in VCR disputes keeps up with the speedy process of the workflow. VCR was made so that disputes can be resolved more efficiently and faster. This can be both a disadvantage and an advantage for businesses as disputes can be easier to miss.
Need a Hand in Chargeback Prevention?
Revitpay is a high-risk merchant services provider that keeps up with the latest updates so that you can focus on your business. We are equipped with setting you up with chargeback alerts as well as other ways to keep your chargeback rate low. Contact us today to find out how we can help you.