Blog | Industry Insights
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The evolution of first-party misuse: what’s changed in 2025
Fraud continues to be a problem in the payments world—but there may be reason to hope. Recent trends show that the battlefield is levelling: merchants might finally have the tools and technologies they need to start fighting more types of fraud effectively. Staying informed about different types of fraud and how they are affecting merchants…
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5 steps that can help protect you against first-party misuse
First-party misuse, also known as friendly fraud, has proved to be a persistent challenge for merchants. Friendly fraud occurs when customers dispute a legitimate transaction because they cannot remember authorizing it or intentional abuse of the dispute process. Regardless of the reason, merchants end up facing financial losses…
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How VAMP works: The criteria, thresholds, and monitoring in action
In our previous blog, we offered an overview of the newly updated Visa Acquirer Monitoring Program (VAMP) and how it can help acquirers and other players in the payments space manage risk. Going deeper, this blog will help you understand the nuts and bolts of the program: what exactly VAMP monitors, how it works, and what happens when a merchant is flagged…
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Quantifying the challenge of Friendly Fraud
First-party misuse, also referred to as friendly fraud, can be a challenging type of fraud to fight with traditional fraud management tools. Friendly fraud occurs when a customer disputes a legitimate transaction, usually claiming it was unauthorized. Often customers just don’t recognize the charge, even though it’s legitimate. Or sometimes…
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Limitless Chargeback Resolution Decisioning Capabilities
With a rising volume of online transactions and corresponding chargebacks, merchants are increasingly challenged with chargeback problems as unique as each business. Finding the right dispute mitigation strategy is intensely personal to each merchant and it can be difficult to strike precisely the right balance for a cost-effective strategy. Starting in March 2025, Verifi will…
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The Power of CDRN and RDR
Visa post-purchase transaction dispute volumes went up more than 7% in 2023 alone1. The combination of lost sales, dispute fees, operational costs, relating to disputes, can cause merchants to lose unnecessary revenue. An active chargeback prevention strategy can help merchants limit post-purchase losses by stopping disputes in the interim between when a cardholder initiates a…
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Is your business a good candidate for CE3.0 deflection?
Launched in April 2023, Visa’s Compelling Evidence 3.0 (CE3.0) represents a major shift in chargeback fraud protection for merchants; but some merchants are more equipped than others to reap the benefits. Is your business well positioned to harness the benefit of the rule change for a proactive chargeback mitigation strategy that fights chargebacks in the…
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Jogging a Customer’s Memory to Prevent Friendly Fraud
The very thing that makes subscription services so valuable is also the driving force behind subscription-related card disputes. Recurring transactions are inherently structured to provide ease so consumers don’t have to remember to make payments. But when service is so streamlined, consumers can either forget what the charge is for when looking at their billing…
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Compelling Evidence 3.0 301 Training: Qualified Transaction Matching
Visa’s new compelling evidence 3.0 (CE3.0) takes effect this April 15th, 2023. Here’s what you need to know. What is CE3.0? 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 to Use Verifi’s Order Insight with CE3.0 In the months…
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ICYMI: Removing Disputes Has Risen to the #1 Concern for Merchants
According to a recent survey, removing transaction disputes from the payments ecosystem has become the number one concern for merchants, with a tertiary concern of fraudulent chargebacks, otherwise known as first-party-misuse1. The question is – how do you stop payment disputes and still do right by your customer? Research shows it’s five to twenty five…
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Visa Compelling Evidence 3.0
For Subscription Merchants Starting in April 2023, the introduction of Visa’s new Compelling Evidence 3.0 (CE3.0) may give relief for subscription merchants who have struggled with first-party misuse (friendly fraud) for years. The ease and convenience of reoccurring subscriptions is ideal for customers; but the billing model can put merchants at greater risk for chargeback fraud,…
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Compelling Evidence 3.0 (CE3.0) in the Pre-dispute and Pre-arbitration Environments
Merchants, especially those operating in a card-not-present environment, have seen increased instances of fraud over the last few years. Between 2019 and 2021, annual Visa CNP sales grew 51% and chargebacks grew nearly 30% globally1. Many of these are false credit card disputes inaccurately categorized as fraudulent and may actually be the result of friendly…
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“Friendly Fraud” is on the rise. Visa’s new Compelling Evidence 3.0 aims to help merchants level the playing field.
According to Visa internal reporting, friendly fraud can account for up to 75% of all chargebacks. “Friendly fraud is not always friendly, especially from a merchant’s perspective,” said Mike Lemberger, Senior Vice President of North America Risk at Visa. The Fair Credit Billing Act of 1974 legislated the chargeback process to help protect consumers; but…
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What Every Merchant Needs to Know About Friendly Fraud
As card-not-present transactions rise, Visa is addressing the impacts of first party misuse Fueled by the pandemic, the digital economy has grown significantly in the past two years. At Visa, we are continuously listening to and learning from all members of the payments ecosystem. What we’re hearing is that while online purchases are more seamless…
