CE3.0 Support Available Beginning April 2023
Beginning April 15, 2023, an update to the Compelling Evidence rules will be released by Visa. This update, referred to as Compelling Evidence 3.0 (CE3.0), is Visa’s latest evolution of compelling evidence requirements for 10.4 fraud disputes, designed to help reduce first-party misuse (friendly fraud) in the post-purchase ecosystem.
How Can Sellers Take Advantage of CE3.0?
Pre-dispute
Facilitated through Verifi’s Order Insight solution, participating sellers can provide purchase details to issuers in an attempt to deflect a transaction in question (pre-dispute) from becoming a chargeback.
How it Works
Visa will pre-select 2 to 5 transactions with no active fraud reports or fraud disputes that occurred between 120 and 365 days of the attempted dispute date.
The participating seller will need to systematically return data elements outlined in the above referenced qualification criteria for those transactions that were pre-selected.
Verifi’s Order Insight will validate the data, and pass to Visa to make the liability decision based on qualification criteria.
If criteria are met, the pre-dispute will be blocked and liability for the transaction will stay with the issuer.
Post-dispute
Aligning with the existing pre-arbitration process, sellers will have the opportunity to work with their acquirer to submit transaction data elements that meet CE3.0 qualification criteria in an attempt to recoup revenue lost to illegitimate fraud disputes (Visa 10.4).
How it Works
Seller will work with their acquirer to locate and package data elements that meet CE3.0 qualification criteria for two historical transactions that occurred 120 – 365 days prior to the dispute date for the same cardholder (identical PAN).
The acquirer will deliver the response package via Visa Resolve Online (VROL) where the CE3.0 data elements will be validated.
If the data elements from the historical transactions meet the qualification criteria, the seller/acquirer response will be deemed successful.
Using Verifi Order Insight for pre-dispute systematic dispute deflection
Verifi will begin its beta period for CE3.0 following the successful release by Visa. General availability for Order Insight pre-dispute support of CE3.0 is expected to begin in July 2023.
Verifi’s updated API 3.0
New CE response fields will be supported in this update, including:
| • Device ID | • Device Fingerprint |
| • IP Address | • Delivery Address |
| • Account ID | • Product Description |
These fields are referred to as “Core Data Elements” and will be used to determine if the merchant response is eligible for deflection.
Alongside these Core Data Elements, new mandatory response fields will be required, and some specific industry-related fields are recommended to increase the opportunities for deflection.
Example of Core Data Elements used as Qualified Transaction Data:
With CE3.0, merchants will be able to deflect illegitimate disputes, avoid unnecessary dispute-related costs and fines, and keep fraud and dispute ratios healthy.
To learn more about CE3.0 in the pre-dispute stage, and how merchants can get started, review our recent client-exclusive webinar, Order Insight – 2023 API Updates to Support Systematic Dispute Deflection.
Additional Resources
- ICYMI: Removing Disputes Has Risen to the #1 Concern for Sellers
- Visa Compelling Evidence 3.0 – For Subscription Sellers
- Compelling Evidence 3.0 (CE3.0) in the Pre-dispute and Pre-arbitration Environments
- “Friendly Fraud” is on the rise. Visa’s new Compelling Evidence 3.0 aims to help merchants level the playing field
- What Every Merchant Needs to Know About Friendly Fraud