Solidgate’s technology enables real-time transmission of transaction data, including product information, delivery details, and company information. Our system aims to reduce billing confusion and prevent friendly fraud by providing issuers and cardholders with comprehensive details, enhancing call center interactions, and utilizing pre-dispute compelling evidence to prevent fraudulent disputes.
By integrating our system, businesses can leverage Order Insight (OI) and Consumer Clarity (CC) to provide a consistent cardholder and issuer experience.
This rule that completely prohibits accepting fraudulent disputes by issuers if the merchant provides evidence of previous undisputed transactions. By using Solidgate’s advanced technology and fraud prevention solutions, businesses can significantly reduce their risk of chargebacks and fraud while maintaining customer trust.
Order Insight and 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. Solidgate 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.
- When cardholders inquire about a purchase, the card issuer requests information about the transaction.
- Solidgate validates whether the merchant is enrolled in Order Insight or Consumer Clarity.
- Solidgate requests the retrieval of order details from the merchant.
- Solidgate routes the request directly to the merchant.
- The merchant retrieves order details from their database.
- The merchant returns the order details via API response.
- Solidgate sends the raw data back to the issuer.
- The card issuer reviews the information with the cardholder to determine whether the transaction was legitimate or if a dispute is necessary.
Compelling Evidence 3.0
When a cardholder reports fraud to the issuer, Solidgate 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.
- The Cardholder contacts the Card Issuer and reports fraud.
- The Issuer initiates a 10.4 fraud dispute.
- Solidgate requests order details for the disputed Visa transaction from the Merchant.
- The Merchant retrieves order details and returns them via API response.
- Issuing bank checks if the dispute is eligible.
- If eligible, additional requests for historical transactions are sent to the Merchant. A minimum of 2 and a maximum of 5 additional Solidgate requests may be sent requesting order details for CE3.0 pre-dispute rule processing.
- The Merchant retrieves order details for historical transactions and returns them via API response.
- Issuing bank validates the responses and blocks the fraud dispute if the Visa Rule criteria are met.
- The card issuer notifies the cardholder that a fraud dispute is not permitted.
In a card-absent environment (online/phone/direct mail sales, etc.), either a) an unauthorized (fraudulent) claim was processed using an invalid or stolen account number; or b) the cardholder believes the transaction to be fraudulent due to an unclear or confusing merchant descriptor. 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