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Subscription services have become a popular option for young consumers.
What could be better than subscribing to services that promise home delivery of food, razors, clothing, luxury goods, makeup, video games, beer and wine, or underwear?
A boon for consumers and for merchants – or is it?
Merchants cannot ignore the looming threat of subscription chargebacks and churn. Consumers risk subscribing to businesses that have quality control issues, provide poor customer service, or offer spotty customer communication – any of which can result in chargebacks, churn, and brand damage.
While subscription services are booming, merchants must assess their ability to deliver consistently high quality services. The risks of failure are high, particularly when consumers use social media to take issue with the value, quality, and timeliness of the subscription delivery.
Modern E-Commerce Subscription Services
While start-ups comprise the majority of new subscription services, many large brands are drawn to the potential of continued growth in this market space, including P & G (Gillette on Demand), Sephora (Play!), and Walmart (Beauty Box). Each sees subscription service as a way to attract a new generation of consumers and maintain their current customer base.
A subscription services survey fielded by McKinsey & Company in November of 2017 to more than 5,000 participants revealed these insights:

15 per cent of online shoppers have subscribed to an e-commerce service in the past year. 35 per cent of these subscribers also subscribe to a media-streaming subscription service.
The target demographic is urban 25 to 44-year olds with incomes ranging from $50,000 to $100,000. 60 per cent of these subscribers are women.
Although women are more likely to subscribe, men are more likely to have more than three active subscriptions. This is above the average of two subscriptions.

The McKinsey & Company survey identified three key types of subscription services:

Replenishment. Accounting for 32 per cent of all subscription services, replenishment restocks common home items regularly, such as razors, shampoo, or diapers.
Curation. Offers a degree of surprise and personalization, with services selecting clothing, food, or beauty products based on the subscriber’s profile. Represents the high percentage of subscribers capturing 55 per cent of those surveyed who subscribe to a service.
Access. Offers members-only perks and exclusive discounts to subscribers. The exclusivity of this subscription category drives the 13 per cent subscription rate.

Consumer Demand Drives High Subscription Service Expectations
The draw of a subscription service is primarily in convenience and personalization. Consumers are willing to pay for a personalized box of snack food that arrives monthly at their home, eliminating a trip to the grocery store and meeting their highly curated preferences. What could be better?
High expectations make it extremely challenging for merchants to realize success. Any misstep such as a late delivery, damaged product, or failure to live up to promises can quickly turn into consumer dissatisfaction.
These problems are more likely to be overlooked or understood in a non-subscription, one-off online purchase. Because the consumer has not made a long-term commitment to the merchant, it’s easier to accept such missteps. But subscription services have a razor thin margin of error.
Merchants must be prepared to go above and beyond to appease subscription service consumer concerns. To prevent the threat of chargebacks and churn rife within the subscription services business model, merchants must practice these key business strategies, including:

Clear subscription policy. Make the subscription policy clear and easily available to ensure that customers understand the cancellation policy, length of subscription, and billing schedule.
Easy cancellation. The easier it is for subscribers to cancel their subscription, the less likely they are to contact their credit card company to dispute transactions.
Regular emails. Along with a subscription confirmation email, send regular billing reminder emails. This helps prevent the “I forgot I ordered this” friendly fraud claim.
Free trial rules. Be clear about the rules of the free trial, particularly if it has an automatic subscription at the end of the trial.
Excellent customer service. Superior customer service is critical for success, because subscription services come with greater consumer expectations.

Merchants can benefit from the subscription services model, but it’s important not to take seemingly simple success for granted. Being attentive to consumer demands can limit and even prevent risks of disputes and chargebacks, and mitigate churn to help build long-term relationships.
Just as you’re keenly in tune with consumer demands, you must be equally aware of your chargeback risks and ensure you’re able to monitor for lost recurring billing revenue. Please contact us to learn more about how to use good customer service and modern business practices to prevent chargebacks and churn in your subscription services offerings.

Changes are coming to how Visa transaction disputes and chargebacks will be processed and managed. With the new Visa Claims Resolution (VCR) program, Visa hopes to reduce the timeframes associated with chargebacks, thereby reducing merchant, issuer and Visa costs, resource drains, and the number of overall transaction disputes.
While promising for merchants, change can be hard to manage and integrate into what is already a confusing dispute resolution process. VCR comes into effect in April 2018, which means merchants have no time to waste learning about VCR and how it can and will impact your business day-to-day.
What Changes Are Coming With VCR?
While the changes coming with VCR may appear daunting and confusing, it’s important to remember that Visa created VCR with the goal of improving the process for all parties involved. For full details on VCR, refer to the Visa Claims Resolution Learning Resources website.
In an effort to streamline the transaction dispute process, the following changes will come into effect in April 2018:

Consolidated reason codes. VCR consolidates 22 chargeback reason codes into four dispute categories: Fraud, Authorization, Processing Errors, and Consumer Disputes.
Reason code 75 being replaced. Reason code 75, “unrecognized transaction,” was confusing for merchants and cardholders and is being replaced with a new process –Merchant Purchase Inquiry. This new process will provide transaction information (purchase information, digital receipt, and order details) to the cardholder, eliminating confusion over unrecognized transactions.
Dispute process transitions from litigation to liability. VCR supports two methods of investigating disputed transactions: Allocation and Collaboration. Allocation is focused on Fraud and Authorization type disputes and enables Visa to decide in real-time who is responsible for the dispute. Collaboration enables issuers, acquirers, and merchants to collaborate and share chargeback dispute resolution evidence.
Shorter timeframes. A key VCR objective is to streamline the chargeback dispute resolution process down from an average of 46 – 105 days. Fraud and Authorization chargebacks will be allotted 31 – 70 days. Customer Disputes and Processing Error chargebacks will be given 31 – 100 days.
Updates to the Visa Resolve Online dispute platform. The Visa Resolve Online (VROL) platform has been updated to support the new VCR dispute rules and process. The ultimate goal is for VROL to be more effective with VCR.
New VCR terminology. Basic chargeback terms will change. The terminology updates include: chargeback, replaced with dispute; and representment, replaced with dispute response or pre-arbitration.

Refer to the following resources to learn more about these changes coming with VCR:

Visa Claims Resolution Efficient Dispute Processing
Visa Claims Resolution (VCR) Learning Resources

How Will VCR Benefit Merchants?
Visa expects VCR to provide a range of benefits to merchants, including:

Reduction in dispute volume. With the use of stricter and more effectively enforced rules, VCR is expected to reduce the chargeback dispute volume by preventing invalid disputes from being entered and processed.
A proactive dispute resolution process. With the new dispute categories, plus more efficient use of VROL and the implementation of Merchant Process Inquiry, merchants will be able to resolve transaction disputes
Identify, track, and monitor abuse. With its indexing capabilities, VROL can proactively monitor for reporting issues. This allows faster identification for areas of training and education that can result in fewer chargebacks.
Better customer experience. Everyone may benefit – including issuers, acquirers, merchants, and cardholders – from streamlined transaction dispute timeframes.

How will VCR impact your current chargeback dispute resolution practices? Do you have access to the support that Verifi’s Chargeback Representment Service provides, ensuring you can respond to chargebacks within the new 30-day time limit? How do you plan to manage the new Allocation and Collaboration automated response requirements? Reason codes are confusing enough, and now with the consolidation of 22 reason codes into four dispute categories, who will you turn to for chargeback guidance and support?
Don’t wait until it’s too late and you’re left scrambling for answers – contact Verifi to get the answers to your VCR questions. We can provide you the chargeback recovery support you deserve.

Security – specifically Internet security – is very much top-of-mind for anyone involved in payments. Whether you’re an online merchant building an omnichannel presence, or a company like Verifi that provides payment services and fraud protection to merchants, having confidence in your communications security platform is vital.
It’s this keen attention to security that drives Verifi to take measures that fortify our security protocols. As a result of security vulnerability identified by the Homeland Security U.S. Computer Emergency Readiness Team, we are updating the security implemented in our servers and gateway.
There is an industry-wide deadline of June 30, 2018 for all companies to update to a new security protocol. We believe it’s extremely important to be ahead of the curve on this update; therefore, we are updating to the new security protocol on March 31, 2018.
TLS 1.3 Security Protocol Update
Compliance with this security update is being mandated by the Payment Card Industry Data Security Standard (PCI DDS). This means that all parties that are bound by the latest PCI DDS regulations must update to version 1.3 of the Transport Layer Security (TLS) protocol.
As of March 31, 2018, TLS 1.3 will protect and secure all Verifi encrypted communication. This further strengthens all communications against vulnerabilities, providing our clients with confidence in knowing that we are using the latest, most robust measures in server/web browser communication security.
At present, not all web browsers support TLS 1.3. To protect yourself and your clients, we suggest using Google Chrome version 63 or Mozilla FireFox versions 52 and above. At the time of writing, Internet Explorer, Microsoft Edge, Opera, and Safari web browsers do not support TLS 1.3.
Your HTTPS websites rely on the latest TLS security protocols to deliver encrypted communication with your clients and with Verifi. Therefore, it is important that you also update your server and gateway security to TLS 1.3. Your IT department should be aware of the PCI DDS requirements and the need to upgrade to TLS 1.3.
For more information on how Verifi is committed to providing secure payments and our industry-leading fraud and chargeback prevention solutions, contact us today.

Merchants need customers. This is a simple fact of business. The challenge for merchants is to attract and then retain these customers. Building loyalty and encouraging customers to trust the brand are key in customer retention.
Long-term customer relationships often hinge on the customer’s first contact with the merchant. This often occurs when the customer contacts the customer service team with a problem or question. Now the pressure is on to find a solution and keep the customer satisfied. Any missteps during this first interaction can result in a lost sale, chargeback, friendly fraud, negative social media review, and a lost customer.
Merchants must not overlook the value of the customer service team. These employees are on the front lines of customer interaction and often deal with unhappy and even angry people. Solving customer problems, responding to questions, and going above and beyond can be the difference between a loyal customer and a lost one.
But what does this have to do with chargebacks and chargeback protection? Simply put, the more a customer service team provides outstanding service helping to resolve problems, the more likely they can prevent a chargeback.
Don’t Overlook Customer Service
To provide good customer service and prevent chargebacks, merchants must be accessible. Customers seek the easiest way to resolve their problem, and, too often, their first step is to contact their card-issuing bank. However, when merchants deal directly with the customer, they can frequently solve the problem and avoid a chargeback.
The problem is that most merchants lack the solutions to support direct customer-merchant interaction. Along with the implementation of a payment solution, such as CDRN which supports real-time communication with the customer, merchants need to train their customer service team to provide helpful resolution strategies.

Be available. An unhappy customer might not have the patience to search for the customer service email address or phone number. Include a customer service email link, phone number, or feature a live chat option on every web page throughout the payment and checkout process.
Be flexible. There are always exceptions to the rule, so consider empowering your customer service team to make decisions that do not rigidly conform to posted refund and return policies.
Be loyal. Cater to your the long-term and VIP customers – especially during the busy holiday sales period. Clear review of your customer’s purchase history can help the customer service team member decide on how best to solve the problem.
Be proactive. Respond to customer queries quickly and efficiently. Remember, the customer is unhappy and the longer she has to wait for a response, the more likely she is to file a chargeback.

Clear Lines of Communication
Your customers chose you and now you need to work hard to cultivate their loyalty. Don’t assume that a well-designed website, mobile app, or excellent product is all you need to retain your customers.
Maintaining customer loyalty comes down to clear and straightforward communication. Interact with your customers to respond to their problems and questions. Be available and make it easy for them to work with you.
Remember that you are not the only choice for the customer, so it’s important that you stand out from the crowd. You can do this with an outstanding customer service team and with the support that a dispute resolution solution such as CDRN provides.
Now is the time to review your customer service practices and analyze how you interact with your customers. Contact us today for advice from Verifi experts that will help put the solutions in place to prevent chargebacks and keep your customers loyal.

It has never been a more exciting or challenging time to be a card not present (CNP) merchant. The barriers to entry into e-commerce, m-commerce, and omnichannel sales networks have largely been erased.
Of course, as with all good things in sales and payments, there are caveats. The digital sales boom also presents many unique fraud risks. Traditional approaches to fighting fraud that work in the retail sales model no longer apply to digital sales.
Too many CNP merchants have not updated their fraud detection and prevention methods to address cybercrime. The good news is that the popularity of omnichannel sales has forced the industry to gain greater understanding of how fraudsters work, how CNP merchants are at risk, and the best strategies and tools to prevent fraud.
The Challenges of Digital Goods Sales
The immediacy of digital goods is a major consumer draw. They see something they want, click to buy, and in an instant can place their order. What could be better for the customer or the merchant?
Unfortunately, this instant gratification sales model sets CNP merchants up for unique fraud risks that don’t come with traditional brick and mortar transactions. CNP merchants specializing in digital good sales must deploy the most current and effective fraud detection and prevention solutions to manage their fraud risk.
Having a firm grasp of the challenges facing CNP merchants face is a the first step:

Instant delivery. With instant delivery, the merchant has little or no time to review the order, check for automated fraud, or conduct a manual review. The purchase and authorization happen in real-time, forcing merchants to make split-second automated approvals or rejections.
False declines. Because of the limited time available to approve a purchase, many merchants rely on rigid rules to approve or decline an order. With fear of fraud on the rise, this has resulted in a startling high percentage of false declines causing frustrated customers, lost revenue, and negative brand perception.
No data. No phone number, no delivery address, no prior purchase history means no data available to review and verify the purchase. This lack of data sets merchants up for large-scale fraud from savvy criminals, who know they can hide behind multiple fake email addresses and proxy servers.
Customer demands. Customers want fast, easy, and simple purchase experiences. Entering passwords, waiting for a confirmation email, or responding to an SMS verification message frustrates this growing population of impatient consumers. The more required of these customers, the greater the risk of abandoned shopping carts or chargebacks.

In knowing the challenges of digital goods sales, CNP merchants can take the proper steps to protect themselves and their honest customers from fraud.
Best Practices to Detect and Prevent Digital Goods Fraud
For most CNP merchants, the right solutions and best practices to prevent fraud comes down to balance. Merchants who are overly rigid risk losing sales and driving customers away, while merchants who are too lax with review policies and data monitoring are vulnerable to fraudsters.
By mixing and matching fraud prevention tools, CNP merchants can implement the ideal solution for their specific business. Here are some guidelines:

The right tool for your sales model. Choose fraud detection solutions that are designed to match the savviness of cybercriminals. Identify solutions that have built-in flexibility along with intelligence to mitigate false declines.
Take advantage of data. One of the major challenges of digital goods sales is the lack of data. But with the right solution, even the smallest piece of information such as an IP address or an open Wi-Fi network can be enough to review, confirm, or reject a purchase.
Act fast. Digital goods sales fraud is not going away. Put the same effort into your CNP fraud prevention strategy that you put into building your mobile app and creating the omnichannel experience.

Be Proactive Against Digital Good Sales Fraud
The explosive growth of digital goods sales has placed unprecedented demands on merchants to update their fraud detection solutions quickly to combat cybercrime.
Unfortunately, too many merchants can’t keep up with the most current information. Contact us to learn how Verifi solutions can keep sales flowing and prevent digital goods fraud.

Fraud comes in many shapes and disguises. Over time it slowly but surely takes its toll on a merchant. When he discovers he has been victimized, the merchant is left with a long list of questions about how and why it happened. What’s confounding is that fraud is not simple and straight-forward – when done expertly it is subtle, savvy, and debilitating.

Clean fraud is so successful because it seems to sneak up on merchants, cloaked in any number of forms including friendly fraud, first-party fraud, and fraud by false claim. What makes clean fraud different is the way thieves use real customer data and identities to commit the crime. Most merchants are aware of the threats that come with stolen identities, fake credit cards, and security breaches, responding with multi-layered solutions designed specifically to stop this kind of fraud.

What makes clean fraud so difficult to detect is that it uses real data to commit fraud. Friendly fraud, first-party fraud, and fraud by false claim do not hide behind fake identities or stolen data. The success of clean fraud relies on the rules systems and checks and balances inherent in fraud detection solutions to detect fake or questionable data. Real data slides through, paving the way for the criminal activity. Yes, it is disconcerting – but the good news is that just like everything in payments and fraud, knowledge is power.

What Is Friendly Fraud?
One of the biggest challenges for merchants is understanding and preventing friendly fraud. The fact is that there is nothing friendly about it, because the fraudster makes claims that appear believable and honest but often are not. The existing merchant-cardholder relationship can make friendly fraud hard to identify and even harder to defend against in a chargeback representment case.

There are five key types of friendly fraud that must be on a merchant’s radar:

Item wasn’t delivered. The cardholder claims the item didn’t arrive when in fact it was received.
Item purchased doesn’t match the online description. The cardholder claims the item on the website is different than the description and wants a refund.
Item returned but the refund wasn’t processed. The cardholder attempts to receive two refunds for one returned item.
Cancelled the order but still received the item. The cardholder claims the order was cancelled but received the item, hoping they can keep the merchandise and receive a refund.
Doesn’t remember making the purchase. The cardholder claims they didn’t make the purchase and their credit card must have been violated.

Preventing friendly fraud requires an expert customer service team, a payments solution designed to provide key confirmation and authorization messages, and best business practices in place including tracking numbers, clear online descriptions, and fully detailed refund/return policies.

What Is First-Party Fraud?
First-party fraud is one of the most prevalent but overlooked types of fraud plaguing merchants and issuers.

First-party fraud happens when the criminal applies for and uses a credit card with no intention to pay for the purchases. Because real identities and easy to validate information (addresses, phones numbers, email address, credit history) are used to verify the legitimacy of the credit card applicant, it’s difficult to distinguish a new, legitimate customer from a potential first-party fraud risk.

The primary victim of first-party fraud is the issuer, but the merchant doesn’t escape unscathed. The trickle-down effects of the credit loss include higher issuer fees, tighter and more restrictive credit card monitoring programs, and great scrutiny of merchant reliability.

What Is Fraud by False Claim?
Similar to friendly fraud, the cardholder takes advantage of the chargeback process to mask their fraud claim. Typically, fraud by false claim occurs when the cardholder stops a recurring purchase, claims they don’t remember the purchase, or claims buyer’s remorse.

By taking advantage of the inherent problems in the chargeback process, criminals understand that most merchants and issuers don’t have the resources or expertise to identify fraud by false claim easily. Because the chargeback reason is wholly believable, fraudsters can sneak through undetected. Often criminals target merchants who have unclear refund/return policies, out-of-date website information, or lack a strong customer service team.

How to Detect and Prevent Clean Fraud
There are no shortcuts or quick-fix solutions that will prevent clean fraud. It requires a multi-layered fraud prevention solution that uses best-in-class technology, including data analysis, artificial intelligence, IP analysis, biometrics, and more. It’s not enough to know that clean fraud is happening. It takes knowing how clean fraud happens, why it happens, and in anticipating the next incarnation of clean fraud – this is the only way to detect and prevent clean fraud.

You can contact us to learn how our payment solutions, specifically Order Insight and CDRN which can keep you on the cutting-edge of fraud prevention and detection.

The Payments Future
Remember when the ATM was innovative? Insert a bank card, tap some keys, and get money instantly. Gone were the days of standing in a long line at the bank and presenting a withdrawal slip. Access your money when and where you wanted it.
Flash forward thirty years and payments can happen with the hover of a winter glove or the scan of a lapel pin or sticker. These payment innovations will debut at the 2018 Winter Olympics in PyeongChang, South Korea. Visa partnered with South Korean retailer Lotte to design and create the latest in payments wearables. The gloves, lapel pins, and stickers feature a duel interface chip and contactless antenna enabling instant authorization of payment.
What’s next for the future of payments? How far can innovation and technology drive the way customers pay for purchases?
Accenture’s 2017 North America Consumer Payments Pulse Survey of 1,500 consumers in the United States and Canada reveals that consumers are ready for payments innovation.

68% of Generation Z consumers, those born between the mid-1990s and the early 2000s, are interested in person-to-person payments – more than any other group.
61% of consumers welcome open access to their finances to view checking account or credit card balances when paying with any mobile app.
64% of consumers plan to use a mobile wallet in 2020, up from current 46% – a 39% rise in the user base.

The general consensus is that the evolution from paper bank withdrawal slip to ATM card to in-store payment terminals to payments wearables is a good thing. The largest drivers in the payments evolution are consumers’ willingness to embrace the technology, and in the payments infrastructure ability of payment processors to deliver a secure solution.
The Power of Generation Z
Gen Z comprises 25% of the U.S. population and promise to be real game-changers in the payments industry.
This generation has never lived without the Internet, Google, or social media. They are highly digital-literate and early adopters of the latest and greatest technologies. For merchants who sell to this demographic, being responsive to demands for mobile apps, digital wallets, and the blurred lines between social media and payments is critical.
Consider this revelation from the Accenture 2017 North America Consumer Payments Pulse Survey: 80% of Gen Z would give up their television for a day – and 28% would give up friends or money just to keep their mobile phone.
Shared Data Analysis
Today’s consumers are not naïve, they know that their data is collected, analyzed, and used to tailor messaging to their specific buying habits. While there are underlying trust issues, most consumers accept that this vast amount of data enhances their shopping experience.
For merchants invested in omnichannel, m-commerce, and e-commerce, this points to maintaining a focus on delivering the ideal customer experience. Customers know the data is there – and they expect to receive a personalized and customized browsing, shopping, and payment experience. Merchants must also know how the customer wants to pay from their device of choice and make available account credentials across all devices.
Mobile Wallet Push
There has been a lot of buzz about mobile wallets and how the industry will adopt this emerging technology. By examining what is happening in China, we can gain insight into what will soon happen internationally.
China has consistently been ahead of the curve with technology and communication adoption rates, making it a truly mobile-centric nation. Alipay, a major Chinese payments leader, has developed mobile solutions that support their estimated 520 million active customers.
By partnering with major payment providers, including First Data, Verifone, Payworks, and Stripe, Alipay enables consumers to use mobile wallet technology wherever they are. Alipay supports 27 currencies in 30 countries, driving how Chinese consumers, and soon North Americans, will pay for purchases.
Staying Afloat in the Evolving Payments Future
Admittedly, we have only scratched the surface of what is happening in the world of payments. This is an exciting time to be involved in how consumers, merchants, and banks support and drive e-commerce. The entire transaction life-cycle is tied to payments – security, fraud prevention, data analysis, marketing, growth, and revenue.
This payments ecosystem requires merchants and their banks to be flexible and agile when it comes to doing business. The fear of missing out is real– wait too long to integrate mobile wallet technology or to deliver a personalized shopping experience and customers will leave.
Merchants need to understand how to prepare for the evolution of payments to meet customer needs. Verifi has a deep understanding of trends in the payments industry and can be a source for planning future strategies. Contact us to learn how you can prepare for consumer demands, bank expectations, and the ever-present fraud risks lingering in the background of this exciting payments universe.

The cold hard truth is that chargebacks can be the undoing for many merchants. Either due to inexperience with best practices that result in unnecessary chargebacks, attacks by professional fraudsters, or simply out-of-date chargeback management principles – chargebacks happen at an alarming rate.
All too often, merchants get caught up in the big picture, focusing on omnichannel security or m-commerce fraud prevention, or constantly testing the latest in fraud prevention technology. While these measures are vitally important, merchants must also take the necessary steps to prevent chargebacks.
The chargeback rebuttal letter is often left to the last minute or worse, completely forgotten. Merchants have very few lines of defense once a chargeback has been filed and the onus is on them to contest the dispute as an important line of defense against fraudulent chargebacks. Do not underestimate the value of a well-written and researched chargeback rebuttal letter.
The Chargeback Rebuttal Letter Matters
It’s important to begin by recognizing a few key facts about the complicated chargeback system:

The chargeback process is deeply flawed
Most cardholders bypass the merchant and contact their bank first
Banks have limited information at to validate the sale and to respond accordingly

This flawed chargeback management system frustrates even the most proactive merchants and leaves the chargeback rebuttal letter as one of the best ways to defend and win a chargeback dispute.
The Keys to A Successful Chargeback Letter
A successful chargeback rebuttal letter comes down to having the right resources in place that allow merchants easy access to the information and facts about the disputed charge.
Time is not on the side of the merchant when it comes to building and presenting the response. Using a solution that monitors purchase data, tracks payment and delivery details, and allows direct insight into order history gives merchants the timely and detailed data they need to write the chargeback rebuttal letter.
The ability to win a chargeback dispute comes down to the compelling evidence that supports how and why the chargeback is unwarranted. Compelling evidence can include:

Copy of the refund/return policy
Proof of cardholder approval for the purchase
Confirmation emails/transcripts with the cardholder to prove the purchase
A clear copy of the sales receipt, invoice or order form
Delivery details, including the tracking number, signature upon receipt, and delivery time/location
Proof that the customer lives or works at the delivery address
Photos, descriptions, etc. that can prove the purchase matches the description provided
Indications that previous transactions from the same IP address, email address, physical address or telephone number were undisputed
Evidence of the customer’s IP address and the download time and date (if a digital service)
Proof that someone related to the customer could have made the purchase with the customer’s card

To be effective, the compelling evidence must leave no doubt that the cardholder authorized the purchase and received delivery. The only way to do this is to have the appropriate payment solutions in place to address everything that results in a chargeback.
Chargeback Management Success
Realizing chargeback management success is quite possible. However, this success requires a thorough understanding of your sales, payment, and authorization processes.
It takes a cohesive and connected approach to payments processing. Knowing you have the best solutions for your unique process will enable you to realize chargeback management success.
Learn about Verifi’s payment solutions, including Order Insight and our Chargeback Revenue Recovery Service. Be sure to visit our Resource Center and Knowledge Base to arm yourself with the best information possible in the defense against chargeback fraud and losses.

There is not a merchant, cardholder, issuer, or acquirer who wants to hear the words data breach. The impacts can be devastating, potentially affecting everybody in the transaction life-cycle, including innocent cardholders.
Our intent is not to frighten merchants, rather it is a wake-up call to data breach risk. If merchants ignore the risk, it can and will happen.
Merchants can and must be proactive in the face of data breach attacks. The best defense against fraud comes from being proactive, aware, and prepared.
How a Data Breach Happens
Professional hackers and data breach experts excel at their jobs. Yes, jobs – these criminals execute data breaches and fraud for a living. Because of this professional approach to fraud and hacks, merchants and cardholders cannot become complacent or live in hope they won’t fall victim.
To be successful, a professional hacker does the following:

Research. Savvy hackers look for merchants with security weaknesses. These vulnerabilities can include an open and free WiFi network, disgruntled employees, outdated security systems, relaxed attitudes to storing customer data, and any other holes in communication and security.
Invade. It is imperative for cybercriminals to move fast and efficiently. These hackers want to break in and move around freely without being noticed. This requires advanced technology, inventiveness, and confidence.
Attack. There are two primary attack methods: network and social. In a network attack, the criminal uses holes or weaknesses in the company’s IT infrastructure or network to access confidential data. A social attack takes advantage of the complacency of employees, tricking them into giving up secure information or access to databases. This can happen with a believable looking email that asks the employee to confirm their credentials or open an attachment that has embedded malware.
Steal. Once the criminal has successfully invaded and attacked the company, he completes his task by committing the theft.

Typically, fraudsters target companies that have access to confidential data. Common targets are healthcare organizations, online shopping merchants, social websites such as dating sites, government organizations, and credit providers. These types of organizations have access to personal data including credit card details, complete addresses, social security numbers, healthcare data, bank account information, and email addresses.
With this data, hackers have what they need to sell the data, apply for credit cards, go on online shopping sprees, steal directly from bank accounts, or more.
Costs of a Data Breach
One of the principal reasons for complacency towards data breach attacks is not understanding their true cost. Most people are made aware when hackers compromise a large organization and steal personal data. But unless it is a very high profile case, that’s where the story ends. There is little to no follow-up on what this data breach means for the organization – beyond the negative publicity.
When considering payments security and fraud prevention, merchants should be aware of the hard and soft costs of a data breach:

Loss of merchandise. This is the direct result of data breach fraud when thieves use stolen credit cards to “purchase” merchandise with fraudulent transactions. This merchandise is never recovered.
Customer communication. Merchants and other organizations must be proactive in communicating with their customers about a data breach. There can be significant resource and time demands communicating the breach to victimized and at-risk customers.
Forensic review. Merchants are bound by regulations to undergo a forensic examination of their payment system after a data breach. The costs of this forensic review can range from $20,000 to $50,000.
Issuer and acquirer fees. Merchants impacted by a data breach absorb chargebacks and their associated costs. This translates into higher issuer and acquirer fees and for some merchants can lead to placement in chargeback monitoring programs.
Brand reputation. Recovering from a data breach is not easy, because the negative publicity can cause long-term brand damage. Merchants must be actively engage in communicating with their customers, investors, and other third-parties to mitigate the impact of a breach.

Be Proactive Against a Data Breach
One positive result that has emerged from the recent high-profile data breach attacks is the increased awareness of tried-and-true steps merchants can take to protect themselves from a similar attack. At the same time, cybercriminals constantly strive to stay one step ahead of preventative measures, so merchants must remain current with the latest payment solutions technology.
Merchants who are fully committed to payment solutions security and cardholder protection can address potential weaknesses and protect themselves and their customers from attacks.

Multi-layered fraud prevention. Choose payment solutions that employ layered fraud detection technologies to detect and stop criminals.
Be smart about data. Don’t keep any customer data on file, in the cloud, in a database, or on a USB drive.
Use encrypted communications. Work with industry experts to configure an encrypted communications network and payments solution.
Stay alert. Conduct reviews of your payment solutions, educate your employees on the risks and potential for data breach attacks, and know the signs of fraudulent activity.

Data breach attacks happen, but with the right partners they can be prevented. Contact us to learn more about how Verifi experts can help keep your network and payments data safe and secure.

Shopping has evolved. Who could have predicted that social media would become the new shopping mall? Now consumers open their Instagram, Twitter, and Facebook mobile apps and tap ‘buy.’ Merchants benefit from a new way to capture consumer interest and to generate sales.
However, this m-commerce shift comes with some risks. Payment and security solutions must keep pace with cybercriminals or fraud and credit card disputes will significantly increase.
Just as in the early days of e-commerce, m-commerce demands that merchants know their consumers. Demographics, psychographics, shopping trends, and other data analyses are critical to build an m-commerce solution that appeals to consumers. Today’s m-commerce consumer has no patience to struggle through a learning curve – they want instant gratification and hassle-free transactions.
M-commerce is expected to become a $626 billion industry in 2018. According to Goldman Sachs, m-commerce will dominate consumer sales. A growing number of people will make purchases with their smartphones and tablets. The convenience and freedom to shop anywhere, anytime, is the basis for Goldman Sachs’ estimate that 535 million worldwide consumers will adopt m-commerce in 2018.
Merchants who hope to benefit from m-commerce growth must answer two critical questions. First, how can they harness the m-commerce marketplace? Next, what is happening in the m-commerce marketplace? Read on for the answers.
Maximizing M-Commerce Potential
When they make a purchase, consumers have no tolerance for delays, cart updates, or slow-downs in authorization. When consumers see the Add to Cart and Checkout buttons, they expect action. The longer the delays between adding items to the cart and final purchase authorization, the greater the chance for cart abandonment.
The ability to harness consumer impulse buying habits is the big challenge for m-commerce merchants. Standing out from competitors with an app that is easy-to-use, fast, and secure is vital. Along with a Buy button, consider adding an Instant Buy button, similar to Amazon’s website model. Encourage consumers to act immediately and make it easy to do so.
The more personalized the messages and content consumers see when they open their m-commerce and social media apps – the better. Consumers are savvy and expect to see products and services tailored to their interests and browsing habits. This is the new m-commerce marketing – limit the choice and get personal with specific products. Personalization makes consumers feel that the merchant cares and pays attention, much like the personal touch they experienced in brick-and-mortar stores.
What used to be considered invasive and pushy is no longer the case in the 2018 m-commerce paradigm. Consumers want to buy on their terms so give them what they want whenever they want and make buying effortless.
M-Commerce Technology Is Not Standing Still
The obvious next step to benefit from the m-commerce boom is to employ the right technologies at the right time. While technology constantly shifts, there are some tools merchants should take advantage of now:

Artificial Intelligence (AI). AI enables merchants to get personal by matching consumer preferences to specific product recommendations.
Data analysis. Use the analysis to create customized mobile app experiences. With information such as location, personal preferences, and browsing history, deliver a truly personalized mobile app experience.
Omnichannel. Consumers want a complete omnichannel shopping experience. Make sure they can decide how, when, and where they receive their purchases.
Chatbots. Consumers want useful information. Responsive and effective chatbots or smartbots can be a big differentiator.
Augmented Reality (AR). Items like furniture and clothing often need to be seen before buying. With AR, consumers can see in real-time how the new couch looks in their home or ensure the pants will fit correctly.

There is no silver bullet to achieve m-commerce success. It requires being current with the latest consumer trends, changes in technology, and fraud threats. The underlying factor with all of these is data. The ability to analyze data and take action gives you the insight you need to fix and improve your m-commerce experience.
Whether it is creating a more tailored and simple mobile app or giving customers instant gratification or quickly identifying fraud threats, it all comes down to data. Take advantage of the data your payment solution collects to harness the m-commerce marketplace. Your current and future profitability depends on it.