Prevent

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Prevent
Improve customer experience and prevent fraud chargebacks

Solidgate’s technology enables real-time transmission of transaction data, including product information, delivery details, and company information. Solidgate system aims to reduce billing confusion and prevent friendly fraud by providing issuers and cardholders with comprehensive details.
It also enhances call center interactions and uses pre-dispute compelling evidence to prevent fraudulent disputes.

Businesses integrating Solidgate’s system can use Order Insight (OI) and Consumer Clarity (CC) to ensure a consistent experience for cardholders and issuers.

Additionally, Solidgate’s CE3.0 fraud dispute deflection solution, which works through the OI alerts channel, helps businesses shift dispute liability to issuers and cardholders by providing qualified compelling evidence.

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
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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 OI or CC and requests the order details.
The request is routed directly to the merchant, who retrieves the order details from their database.
The merchant returns the details via API response, which the issuer reviews with the cardholder to determine transaction legitimacy and the need for a dispute.

  1. The cardholder inquires about a purchase, and the issuer requests transaction information.
  2. Solidgate validates whether the merchant is enrolled in OI or CC.
  3. Solidgate requests the retrieval of order details from the merchant.
  4. Solidgate routes the request directly to the merchant.
  5. The merchant retrieves order details from their database.
  6. The merchant returns the order details via API response.
  7. Solidgate sends the raw data back to the issuer.
  8. 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
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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.
Merchants retrieve and return the order details via API response. VISA validates the responses based on CE3.0 rule criteria to block or deflect the fraud dispute.

  1. The cardholder contacts the card Issuer and reports fraud.
  2. The issuer initiates a 10.4 fraud dispute.
  3. Solidgate requests order details for the disputed Visa transaction from the merchant.
  4. The merchant retrieves order details and returns them via API response.
  5. The issuing bank checks if the dispute is eligible.
  6. If eligible, additional requests for historical transactions are sent to the merchant. A minimum of 2 and a maximum of five additional Solidgate requests may be sent requesting order details for CE3.0 pre-dispute rule processing.
  7. The merchant retrieves order details for historical transactions and returns them via API response.
  8. The issuing bank validates the responses and blocks the fraud dispute if the Visa Rule criteria are met.
  9. The card issuer notifies the cardholder that a fraud dispute is not allowed.
CE3.0 Rule Criteria
Issuers are held liable for a Guide
In a card-absent environment (online/phone/direct mail sales, and others), either an unauthorized (fraudulent) claim was processed using an invalid or stolen account number or 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 OI 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.
  • The merchant provides product description for each item purchased on the disputed and historical transactions.
For a successful liability shift, clear item description responses from merchants are crucial. This supports transaction recognition by cardholders and lessens the chances of issuer-initiated reviews. Examples include lodging date details or providing comprehensive merchandise specifications.

CE dispute deflection example
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Prevent CE3.0 Dispute Deflection would apply:

  • The issuer raised dispute on September 18, 2024.
  • The period for valid historical transactions search is therefore between 120 days (May 21, 2023) and 365 days (Sept 18, 2022).
  • 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, 2024
    • Transaction #2 Jan 12, 2023
    • Transaction #3 Nov 5, 2022
  • 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 is blocked by Visa
  • Results in 10.4 Fraud Dispute Deflection due to pre-dispute Compelling Evidence Rule criteria being met.
Data validation
  • Device ID must have a minimum of 15 characters.
  • IP Address cannot be private and must follow IPV4 or IPV6 formats.
  • Device fingerprint should be at least 20 characters long.
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