Chargebackhit is a unified source of data with a layer of proprietary technology aimed at boosting the efficiency and Glossary
Return on Investment (ROI) quantifies the financial gain or loss from an investment relative to its initial cost, serving as a crucial metric in assessing investment performance. ROI of chargeback prevention. It leverages the two main chargeback Glossary
Chargeback notifications are messages that the merchant receives informing them that a chargeback has occurred or will soon occur. alert networks, Visa’s Verifi and Mastercard’s Ethoca, which offer global coverage by comprising various issuing banks worldwide, with many of them participating in both networks.

Chargebackhit empowers merchants by offering proactive assistance in the early stages of the dispute-resolution process. The streamlined approach helps merchants to resolve issues promptly, without the need for time-consuming dispute analysis, ultimately reducing the chargeback costs. When a customer initiates a chargeback, instead of immediately filing a dispute, the issuer sends a notification through the Chargebackhit system, requesting transaction details from the merchant. This early intervention allows merchants to provide supporting evidence or initiate a refund, notifying the issuing bank and effectively avoiding the chargeback.

To prevent chargebacks and stay compliant with Visa and Mastercard, consider the following approaches provided by Chargebackhit:

• Glossary
  A tool that allows merchants to stop Visa chargebacks before they are initiated by the customer. Merchants integrated with OI (formerly referred to as Visa Merchant Purchase Inquiry - VMPI) can provide card issuers with the detailed company, customer, order, and product information in real-time. Order Insight and Glossary
  Consumer Clarity (formerly referred to as Ethoca Eliminator) is a system that allows the merchant to provide details of the transaction to the issuing bank to prevent unlawful chargebacks. Consumer Clarity
  When a customer initiates a chargeback or transaction clarification, the bank requests details from Visa, who in turn requests them from the merchant. Merchants can provide data automatically using Consumer Clarity and Order Insight, with Chargebackhit acting as a communication channel between the cardholder’s bank and the merchant. This automated communication can prevent potential chargebacks. Furthermore, Compelling Evidence 3.0 combined with Order Insight increases the likelihood of successfully preventing fraudulent disputes, reducing costs and efforts associated with addressing disputes.
• Guide
  Resolve disputes efficiently with Chargebackhit automation. Resolve
  It integrates RDR for auto-resolve, CDRN and Ethoca with a refund on the merchant side. Integrating with Verifi ( Glossary
  RDR is a program from Visa that allows merchants to automatically process returns to resolve certain disputes. RDR and Glossary
  The CDRN is Verifi’s proprietary solution, this platform is one of several alert networks that intercept chargebacks on your behalf. CDRN ) and Ethoca (Mastercard and Issuers alerts) provides chargeback resolution services, preventing claims from escalating into disputes while staying within Guide
  Thresholds refer to the predefined levels of chargeback activity that trigger alerts, allowing merchants to take action to prevent chargebacks before they become a significant issue. thresholds , chargeback ratios, payment processing fees, dispute resolution costs, and program compliance fines.

Order Insight and Consumer Clarity are preemptive notification tools combined into Guide
Chargebackhit system prevents disputes and protects revenue by providing enriched transaction information to issuers and customers in real-time. Prevent to proactively deal with disputes. The data can later be compiled into Guide
Increase win rates and recover revenue with chargeback representment and compelling evidence. Recover to fight chargebacks.

For each product, the alert processing flow is approximately the same:

Alert types

Glossary
Chargeback notifications are messages that the merchant receives informing them that a chargeback has occurred or will soon occur. Chargeback alerts are delivered to the merchant before a claim is made, giving them a chance to avoid it. The alerts inform the merchant that a chargeback is pending but has not yet been filed. In this case, the merchant may take independent actions to avoid the chargeback, such as a voluntary refund, and pass this information to the issuer.

By bundling all the alerts on the market, we can assist merchants with one of the first stages of the dispute-resolution process to resolve the issue without investing significant time into analyzing your disputes while also reducing your chargeback costs.

Alerts are issued either by issuers or card schemes and originate from customers who have initiated a chargeback. Here is a simplified overview of the process for all types of alerts:

Chargebackhit provides a unified API for all kinds of alerts. Currently, its products include:

Verifi CDRN

Cardholder Dispute Resolution Network’s (CDRN) unique and patented, closed-loop process directly integrates with top issuers and provides unmatched service quality and accuracy for merchants and issuers to resolve disputed payments, dramatically minimizing chargebacks and cardholder dissatisfaction. CDRN receives immediate notifications from issuing banks about cardholder issues.

Verifi CDRN alerts lead to the freezing of the chargeback process for 72 hours.

Verifi Order Insight

Before a dispute can be registered, Visa will require issuing banks to make an Order Insight inquiry into the transaction. Order Insight sends the transaction data from the merchant as it is gathered in real-time. This data contains delivery confirmations, purchasing device IDs, and even customer support interactions that link a cardholder to the purchase. Order Insight prevents disputes and friendly fraud by aiding cardholder recognition.

Consumer Clarity

Additional transaction data is displayed to cardholders in real-time on their online statement. Consumer Clarity helps issuers determine if a cardholder has made a purchase, both via contact center or mobile device in real-time (such as Order Insight).

Verifi Inform

When a fraudulent transaction is confirmed, issuers send a fraud alert called a TC40 statement. TC40 tracks stolen card numbers and other identifiers for fraudulent transactions. The VISA product also includes dispute notifications for already-issued chargebacks, which you can receive more quickly than from the acquirers.

Ethoca

Disputes that have not been declined due to Consumer Clarity requests are routed through the issuer’s network and global Mastercard (including Mastercard Collaboration) alert network before they become chargebacks. Merchants should check these alerts through their payment processor gateway. Refund alerts do not affect merchant accounts as negatively as chargebacks. Typically, merchants will refund, stop shipping, cancel subscriptions, etc.

RDR

If a dispute survives an Order Insight request, Visa has provided a pre-dispute phase where the transaction details are sent to the merchant for automated review. Here, the merchant specifies certain conditions, the fulfillment of which can result in an automatic refund via Visa Response Online (VROL). Rapid Dispute Resolution (RDR) provides an immediate refund to the cardholder.

Compelling evidence 3.0

The key value of Compelling evidence in Chargebackhit system is to help merchants prevent disputes by providing supporting evidence for disputed transactions that can potentially lead to a more favorable outcome.

Alert types are categorized as:

Guide
Leverage post-authorization fraud and dispute notifications to lower payment risk. Inform types are categorized as:

Interaction

Responses

Responses summarize complex Chargebackhit API outcomes and responses, ensuring accurate transaction reconciliation.

Alert types

Expand all

inquiry

The goal of these type is to offer order information, aid cardholders in identifying purchases, and promote trust and transparency in the ecosystem.

Default outcome acknowledged

order , customer , transactions , products , merchant information in the webhook

init-refund

Reconcile to original transaction and provide the status, in most cases - refund.

Enum outcome reversed, previously-reversed, decline, reverse-error, not-found, acknowledged, pending, shipped

order information in the webhook

fraud | dispute | resolved | prevented

Reconcile to original transaction.

Default outcome acknowledged

order information in the webhook and order_id is important for reconciliation alert to the original transaction

Outcome Types

Expand all

reversed

The transaction has been refunded following the alert.

This outcome occurs when an alert is successfully matched with a successful sale transaction, leading to a refund of the transaction.

previously-reversed

The transaction has been refunded before the alert.

This outcome is determined when the transaction has already been refunded prior to the alert.

decline

The related transaction was not successful.

This outcome occurs when the transaction has been voided before the alert.

reverse-error

Unable to process a refund.

This outcome occurs when an attempt to refund has failed due to a decline by the bank.

not-found

Transaction has not been found.

This outcome occurs when an alert cannot be matched with any existing transaction.

acknowledged

The merchant has decided not to issue any refunds.

This outcome occurs when a retrieval request is received prior to the Ethoca alert.

pending

A temporary status that allows for a response at a later time (recommended within 24 hours), through the update outcome method.

shipped

This type is applicable for physical goods where the goods have already been shipped.