Revolutionary New Service Enables Real-Time Data Sharing and Cardholder, Merchant & Issuer Collaboration
LONDON, UK– April 19, 2017 – Verifi, Inc., a leading provider of payment and risk management solutions for card-not-present (CNP) merchants, formally announced the launch of Order Insight, an advanced collaboration platform that dramatically improves efficiency across all parties in the payments ecosystem. It enables robust order details to be shared in real-time between cardholders, merchants and issuers. The legitimacy of a sale can be determined at the time a billing inquiry or dispute arises. This real-time solution prevents false fraud claims, unnecessary chargebacks and lost sales and profits.
The Current Dispute Process Creates Significant, Shared Challenges
Today, up to 86% of cardholders bypass the merchant and contact their issuing bank directly to dispute or question a charge on their bill. Disputes can often occur for a variety of reasons, two examples of these are, the cardholder simply being confused over unclear or incomplete billing descriptors or legitimate instances of criminal fraud. Many customers, however, have become accustomed to using the dispute process as a refunding tool resulting from buyer’s remorse or to take advantage of the inefficiencies in the current system, through “first party” or “friendly fraud”. According to industry research firm, Aite Group, 60 to 70% of chargebacks are as a result of first party or “friendly fraud”.
Issuers are challenged to provide the best customer experience. Lacking the information or purchase details needed to legitimise a sale upon phone inquiry, the issuing bank is often left with only one option, to credit the customers and issue a chargeback. Merchants lose valid sales and see a decrease in profits to through both significant and unnecessary chargeback fees and the inefficient use of internal resources. With increased customer dissatisfaction, customers are often left with a negative brand image and often choose a different brand alliance going forward.
Added operational and representment costs are incurred as merchants dispute valid sales lost to unwarranted chargebacks. The impact is ultimately felt by the customer as a result of the merchant having to increase its prices. It’s a multi-billion pound, global problem affecting everyone.
Order Insight – The Right Information for the Right Parties at The Right Time
Integrated with top issuers, Order Insight’s patent pending platform provides robust transaction details about the sale, like the merchant’s name, contact information, date of purchase, device name used in the order process and item or service descriptions (size, colour, style) directly to customer’s fingertips via the bank’s online or mobile applications. In most cases, having access to this data can resolve a questionable charge and avoid a phone call to the issuer, saving the sale, as well as wasted time, resources and costs for all parties that would occur through the dispute representment process.
When a cardholder elects to call the issuing bank instead, issuers call center representatives are equipped with the compelling evidence they need to better identify true instances of fraud, flag unethical cardholders taking advantage of the inefficiencies of the process—or resolve the confusion created by vague descriptors—before they spiral into costly chargebacks and any resulting losses.
For those disputes that are not addressed upfront, Order Insight facilitates the efficient resolution of the dispute between the merchant and the issuer to stop it from escalating to an expensive chargeback.
“Fraud and chargebacks continue to be a major issue for merchants and will continue to grow as shoppers migrate more of their shopping to online and mobile commerce”, said Matthew Katz, CEO of Verifi. “As payments continues to change and expand, we remain committed to being a disruptive market leader in driving real innovation for the broader industry. Our award-winning, Cardholder Dispute Resolution Network (“CDRN”) was created to and continues to help merchants and issuers promptly credit and resolve true cardholder initiated disputes at their origin, stopping them from becoming chargebacks and all the added costs and challenges that go along with them”
“Order Insight is the next phase of our services evolution, where all parties are connected to work together for mutual benefit. Merchants retain their legitimate, hard earned sales upfront, while avoiding profits lost to chargebacks and resource drain on the back end. Issuers provide a better customer experience for their cardholders, help lower instances for “friendly fraud” and reduce operational expenses by focusing on true fraud risks. Cardholders gain better information and clarity into their purchase details and avoid frustrating back and forth to obtain recourse for a sale they may have legitimately made”.
“We saw great, initial results and received some important learning to enhance our offering in our product pilot. Our clients retained over 25% of their at-risk sales upfront and resolved the remainder of their disputes efficiently without being burdened with with the added expenses associated with them becoming a chargeback as well. It’s important to note that this test experience generally exceeds the success rate most merchants achieve in going through the time and costs to dispute a chargeback through the representment process. We are excited to roll out Order Insight to the market and fully expect these results to improve as we expand our network footprint globally.”
Verifi, an award-winning provider of end-to-end payment protection and management solutions, was founded in 2005 to help merchants effectively manage the payments challenges they face every day. Verifi helps merchants safely process payments, combat fraud, prevent and resolve costly chargebacks, as well as increase billings and keep loyal customers. Our best-in-breed solutions and white glove support are trusted by a wide range of industries from emerging companies to large enterpises. With our EMEA headquarters in London, England, we process more than £16 billion transactions annually and currently serve more than 25,000 accounts globally. For more information, visit: www.verifi.com.
# # #