Order Insight - 2020 Comprehensive Overview
The last chance a merchant has to stop a chargeback from happening is when the cardholder is on the phone with their bank asking for one. Unfortunately, the merchant is rarely involved in these conversations. While the bank may try to guide cardholders toward investigating an unfamiliar transaction on their end, or resolving a product complaint directly with the merchant, they don’t always have enough information to prevent every invalid chargeback.
Visa hopes to address this problem with Order Insight, a collaboration tool from Verifi. Can merchants make effective use of Order Insight to provide issuers with purchase details in time to stop chargebacks?
First launched by Verifi in 2017, before they were acquired by Visa, Order Insight allows customer service representatives at issuing banks to access information from merchants’ CRM systems in real time, enabling them to provide specific details about the transaction. This helps cardholders recall unfamiliar transactions and can provide greater clarity to the issuer about whether a dispute is appropriate to escalate to a chargeback or whether the cardholder should be directed to resolve the issue with the merchant.
Order Insight fits into Visa’s overall strategy of trying to provide merchants, banks, and cardholders with tools to prevent disputes and streamline the resolution process. When a cardholder calls their bank with the intention of demanding a chargeback, that is a critical moment in the life cycle of a dispute—at this juncture, it is almost always better for the merchant to issue a refund and avoid the dispute entirely, but if the cardholder isn’t talking to them, the merchant’s only hope is for the issuing bank to ask the right questions, determine that a chargeback is not appropriate, and convince the cardholder to pursue alternative resolutions.
With Order Insight, the merchant’s fate isn’t determined by how diligent and persuasive the issuers’ customer service representative is about handling chargeback calls. The issuer will have a pipeline directly into the cardholder’s transaction history with the merchant, and can provide specific and detailed information to cardholders who don’t recognize a transaction—as well as those who are hoping to pull off a friendly fraud chargeback.
How Does Order Insight Work?
Currently, Order Insight is a feature of the Visa Merchant Purchase Inquiry system. On the issuer’s end, Order Insight is accessed through Visa Resolve Online, their platform for dispute management.
Let’s say a cardholder calls with that classic dispute-starter, “I don’t recognize this transaction.” Did they Google the merchant name on their bank statement? Was there a number listed, and did they try calling it? Who knows! The bank representative may ask these questions, which sometimes prevents the dispute from going further, but with Order Insight they can simply pull up the transaction details in VROL and read them back to the cardholder.
For cardholders who genuinely don’t recognize a transaction, being told the name of the merchant and the products purchased should be enough to satisfy them. With Order Insight, they don’t have to be persuaded to call the merchant themselves. The bank can access the very same information the merchant has saved, and can provide it directly to the cardholder, near-instantaneously, while they’re on the phone with them.
Sometimes a cardholder wants to file a dispute not because they don’t recognize the merchant, but because they feel wronged by them—maybe they haven’t received a long-awaited order and think the merchant is scamming them. Order Insight can empower the bank to convey information about the product and delivery status that can ease the cardholder’s concerns and help get them in a frame of mind where they’re willing to extend some trust and patience to the merchant once more.
Everything Order Insight does happens automatically. Merchants don’t have to monitor and respond to Order Insight inquiries; the system retrieves the information through an integrated link for immediate, seamless transmission to the issuing bank’s call center.
Order Insight isn’t limited to phone support, either—banks can enable their apps and websites to display information received through Order Insight.
What Information Can I Share with Order Insight?
Merchants have a lot of options when it comes to choosing what (and how much) information to send through Order Insight. Generally speaking, the more you can provide, the better. Every little bit of data that the issuer can use to jog the cardholder’s memory or convince them to contact the merchant can potentially save you from a costly chargeback.
Order Insight is designed to convey any of the following information from your CRM or ordering system:
- Detailed product description
- Quantity of items ordered
- Tracking and carrier information
- Delivery status, with signature confirmation
- Refund status
- Device and IP address used to place the order
- Merchant’s name and contact information, including phone, email, and website
- Customer’s name, contact information, and order history
- Transaction details including order number, payment card used, and authentication status
- Usage data for digital purchases, including location and frequency
- Notes about the customer or transaction
Order Insight is designed to cover a wide range of potential disputes, not just unrecognized transactions. Some merchants, because of the industry they’re in or the customer base they serve, deal with unusual customer service situations. Order Insight’s expansive and detailed information sharing categories should give you sufficient flexibility to provide issuers with the right information to defuse and resolve the complaints that are most likely to lead to chargebacks for you.
What Chargeback Types Can Order Insight Prevent?
Used effectively, Order Insight can reduce chargebacks that would have otherwise resulted from merchant error, friendly fraud, and true fraud.
Merchant error chargebacks can include cases where the merchant failed to provide the product or service the customer purchased, or misrepresented it in some way. When a merchant error chargeback has a genuine basis in a mistake that the merchant made, that is a legitimate chargeback—but one that the merchant should never experience again, if they’re smart. A merchant error chargeback always represents an opportunity to learn from your mistake and improve your business operations to correct the problem that caused the chargeback to occur.
When a genuine merchant error is uncovered through an Order Insight inquiry, there is a chance to learn and correct the mistake without going through the chargeback. For example, let’s say a cardholder calls their bank to file a dispute about a delivery they never received. Through the Order Inquiry process, they learn that the merchant gave the wrong address to the carrier. Armed with this information, the cardholder calls the merchant and is offered an immediate refund—chargeback averted.
Friendly fraud chargebacks will also face a major obstacle in Order Insight. Many attempts at friendly fraud involve deceiving the bank in some way in order to get them to file the chargeback. The intentional fraudsters will lie outright, claiming that they never received the product, never authorized the purchase, and so on. But even customers who genuinely but incorrectly believe themselves to be victims of fraud will lie to the bank to get them to expedite the process, claiming that they can’t get ahold of the merchant when in fact they haven’t even bothered to try.
Merchants can usually win when they fight friendly fraud chargebacks, as long as they have compelling evidence to support the fact that they processed and fulfilled a legitimate transaction and upheld their terms of purchase. Order Insight can give merchants an opportunity to provide this evidence before the chargeback happens.
Fighting friendly fraud chargebacks is important, but it’s also costly and time-consuming. It’s much better for the merchant to stop friendly fraud in its tracks, before it becomes an actual chargeback, and Order Insight can empower issuers to recognize friendly fraud attempts while they are being made.
That leaves true fraud, a perennial challenge for ecommerce merchants. Here, Order Insight can claim an insider advantage that makes it a particularly effective. As a Visa product, Order Insight has integrations with bank networks that allow it to flag the transaction and facilitate a credit to the cardholder without escalating the dispute into a chargeback.
How is Order Insight Different from Other Tools?
Order Insight improves on VMPI’s native inquiry response features by allowing for integrations with web and mobile applications, whereas VMPI (Visa Merchant Purchase Inquiry) could only be used by issuers if the cardholders were calling them by phone. VMPI allows merchants to share either transaction information or an indication of their intent to issue a refund; Order Insight provides transaction information only.
Order Insight was created to address a specific point in the dispute process: the cardholder informing their bank that they wish to dispute a transaction. For full and comprehensive protection against fraud and chargebacks, merchants must have coverage at other points in the life cycle of the dispute.
At the beginning of the cycle, when the transaction is taking place, authentication tools like 3-D Secure, AVS, and CVV can be deployed to screen out true fraud. Third-party fraud detection tools can be used here as well, or after the transaction completes.
Next is the point where the cardholder initiates the dispute, and this is where Order Insight comes into play. Mastercard has a similar product, Ethoca Eliminator.
Immediately after the dispute has been filed and submitted for a chargeback, chargeback prevention and alert services (such as Visa’s Rapid Dispute Resolution) are activated. Merchants who subscribe to these services will have an early warning that gives them a chance to issue a refund and avoid the chargeback, but their time to act is limited and if they fail to issue a refund in time, the chargeback will take effect.
Following this, there may be representment and the various pre-arbitration and arbitration phases. Once a merchant has either accepted a chargeback or lost in arbitration, there’s nowhere else to take it but the legal system. The best time to stop a chargeback? As early in the dispute cycle as possible.
Should Merchants Use Order Insight?
Order Insight can be a valuable tool for uncovering fraud and resolving customer concerns at a critical point where these issues could otherwise become chargebacks. Aside from the obvious benefits to merchants of a reduced chargeback rate, Order Insight can prevent lost orders and revenue, help you retain more customers through increased satisfaction and loyalty, and reveal weaknesses in your operations that are leading to disputes or exposing you to fraud.
How Do I Start Using Order Insight?
To use Order Insight effectively, merchants need to have it integrated with their CRM so that it can provide automatic responses in real time to Order Insight inquiries. This may or may not be a job the merchant’s tech team can easily handle in-house.
Chargeback management firms will assist you with data integrations like these as part of building up your chargeback defenses and developing a comprehensive strategy for dealing with chargebacks at every point in the dispute cycle.
What about Order Insight and Data Analytics?
Another valuable service that chargeback management firms can provide is reporting and data analytics. Each chargeback you receive is a wealth of information about your business processes, customer expectations, product quality, and other factors that contribute to disputes and chargebacks. To prevent the most challenging and persistent chargebacks, you have to understand exactly where they are coming from and what it would take to stop them, and those are the answers that data analytics can provide.
Every transaction that Order Insight stops from turning into a chargeback is a useful source of data as well. From Order Insight analytics you can learn how many chargebacks you’ve prevented, which chargeback reason codes Order Insight could not prevent, which issuers generate the most dispute activity for you, and what data was used to deescalate Order Insight disputes the most frequently.
It’s also worth taking a close look at which disputes made it as far as the next phase in the cycle, and whether you exchanged any communications with the customer during this time. If you had the opportunity to issue a refund but failed to take it, it’s important to understand how and why that happened.
Order Insight is a powerful collaboration tool that can help merchants prevent a wide range of chargebacks. While it can be highly effective, it is still only one tool that can only address one cardholder touchpoint in the long journey on which a transaction becomes a chargeback. For the best protection, tools like Order Insight should be supplemented with complementary products and practices that will allow you to fight chargebacks at other points in the dispute cycle.
Companies like Chargeback Gurus who have been specializing in chargeback management for years can assist merchants large and small in devising chargeback prevention strategies, implementing tools like Order Insight, and turning your raw data into the reports and analytics that can show you exactly what you need to do to get a growing chargeback problem under control.