The Chargeback Problem
86% of cardholder transaction disputes are directed to the issuing bank, completely bypassing contact with the merchant. Lacking the needed information to confirm the sale, the issuer has little choice but to resolve the dispute with a chargeback.
Without access to critical order details, issuers cannot determine true fraud from friendly fraud or respond to inquiries in a timely manner.
Impact on Issuers:
- Increased operational costs
- Legal and compliance costs
- Loss of profits
- Customer dissatisfaction and brand damage
The chargeback process has become a $40 billion problem. Poor experiences associated with this process greatly impacts cardholder retention by up to 20%.
Order Insight connects issuers, merchants and cardholders in near real-time, providing “compelling evidence on demand” to quickly resolve billing disputes and improve cardholder experience.
Wins for Issuers:
- Reduce dispute volume and avoid chargebacks with cardholder self-service and mobile banking application
- Avoid downstream representment costs
- Receive compelling evidence on demand to help validate the sale
- Reduce first-party/”friendly” fraud on the first inquiry
- Clarify or resolve billing descriptor confusion
- Improved dispute process and positive customer experience