To sign up, please contact your BlueSnap account representative or email our customer service team at [email protected].
No, Order Insight inquiries are not considered chargebacks.
The initial inquiry response might not be enough to stop a chargeback in its tracks. Even after BlueSnap responds to an Order Insight inquiry, you might elect to issue a refund to the customer if you think the enhanced order details will be insufficient to stop the chargeback.
Yes, the value of Order Insight is in the return of enhanced order details, reminding customers where they shopped and what they bought. Not all disputes are initiated out of confusion. Order Insight won’t deflect disputes arising from unreceived merchandise, defective products, canceled recurring subscription charges, or unprocessed credits, for example. There is additional value in having a view into which chargebacks Order Insight did not stop.
No, the value of Order Insight is in the return of enhanced order details, reminding customers where they shopped and what they bought. Not all disputes are initiated out of confusion. Order Insight won’t deflect disputes arising from unreceived merchandise, defective products, canceled recurring subscription charges, or unprocessed credits, for example. There is additional value in having a view into which chargebacks Order Insight did not stop.
What enhanced order detail is BlueSnap able to provide that is not provided to the issuing bank in the initial transaction?
BlueSnap will automatically return transaction-level data on the merchant's behalf. The registration process requests additional static data points they can opt to include in every Order Insight response.
- Merchant Brand (This should reflect a name that the consumer recognizes)
- Customer Support Email (Email address consumers can use to contact support)
- Merchant Address (Address, City, State, Postal Code, Country, Phone Number, Email))
- Customer Support Phone (Phone number consumers can use to contact support)
- Merchant Website URL (URL consumers access to purchase product/service)
- Merchant Description (Brief description of the product(s) offered under this brand)
- Merchant Terms & Conditions URL (URL outlining the T&Cs for their purchase so the issuer can review with the consumer)
- Merchant Refund Policy URL (URL outlining refund policy terms so the issuer can review with the consumer)
- Default Item Description (maximum 250 characters)
- (Description of product(s) that would be valuable to consumers should they not recognize from the billing descriptor on their statement alone)
- Special Instructions (maximum 250 characters)
- (Short message telling the consumer and issuer how to contact the merchant to receive a refund or other policy information.)
- Merchant Brand Logo URL (The logo will be displayed to the issuer when initiating an inquiry)
- Merchants using Order Insight would get advance notice of a potential dispute, similar to chargeback prevention alerts, and since this service does not automatically refund the shopper, it provides merchants with more freedom in this area. However, unlike RDR, since the shopper is not refunded, the transaction may result in a chargeback.
- Order Insight costs $0.50 or less per inquiry, making it more palatable to merchants with lower average order values.
- Merchants with high chargeback ratios might find the manual aspect of monitoring and deciding whether to refund cumbersome.
- Refunds to shoppers could be delayed if merchants use only Order Insight, whereas RDR and prevention alerts both result in automatic refunds to the shopper thus eliminating the chargeback.
- RDR and prevention alerts stop about an 80%-100% of chargebacks, while Order Insight stops about 15%-20% of chargebacks.
Chargeback prevention alert services notify you about a transaction that the card issuer intends to process as a chargeback due to suspected fraud and/or a cardholder-initiated dispute.
Chargebacks911 is BlueSnap’s chargeback management partner. We use Chargebacks911 to deliver merchant responses to chargebacks and retrieval requests.
A prevention alert is primarily used to resolve a dispute so an issue won’t escalate to a chargeback. Prevention alert providers (Ethoca and Verifi) enable participating issuing banks to communicate directly with merchants (or BlueSnap) in real time. The issuer alerts the merchant (or BlueSnap) when a cardholder has disputed a transaction so the merchant (or BlueSnap) has a chance to provide a refund.
Essentially, Verifi and Ethoca team up with the card brands to pause disputes before they become chargebacks, giving BlueSnap (or the merchant) time to refund disputed sales before the disputes progress to chargebacks. Prevention alerts are a valuable addition to any merchant's toolbox, regardless of risk level or the number of chargebacks they receive.
Prevention Alert Workflow:
- The issuer notifies the alert provider of the dispute.
- The alert provider transmits an alert to the merchant/BlueSnap.
- The transaction is refunded, and BlueSnap or the merchant notifies the alert provider that action was taken.
- The alert provider notifies the issuer that the dispute has been resolved.
- Ethoca: A 3rd party paid service we offer to merchants as a means of lowering/mitigating their chargeback ratios. Owned by MasterCard but provides fraud and dispute alerts generated by participating issuers for all card brands.
- Verifi (CDRN): A 3rd party paid service we offer to merchants as a means of lowering/mitigating their chargeback ratio. Owned by Visa but provides fraud and dispute alerts generated by participating issuers for all card brands.
- TC40: Fraud reporting generated by Visa and provided to BlueSnap by banks for Visa transactions.
- SAFE: Fraud reporting generated by MasterCard and provided to BlueSnap by banks for MasterCard transactions.
This varies and depends on the merchant, their region, their customers' issuing banks' participation in Ethoca/Verifi, the merchant's business type, sales volume, etc.
When a merchant signs up for prevention alerts at BlueSnap, BlueSnap will only receive and process prevention alerts associated with transactions processed through BlueSnap. Merchants can add descriptors used to process sales on BlueSnap MIDs to the set of descriptors managed by another prevention alert reseller, or enroll their BlueSnap MIDs for prevention alerts through BlueSnap.
If a merchant is enrolled with another reseller, or directly with Ethoca or Verifi (outside BlueSnap), they are responsible for refunding their alerts. If they are enrolled through BlueSnap, BlueSnap processes/refunds the alerts. BlueSnap will only process Ethoca and Verifi prevention alerts for your BlueSnap account.
BlueSnap does not currently notify merchants when they receive alerts or when refunds are issued due to an alert. The merchant can identify transactions refunded due to an alert on their payout summary.
Prevention alerts are notifications for specific transactions (confirmed fraud and consumer disputes) that will result in a chargeback unless a merchant takes action. Refunds are issued to stop settlement, and notification is sent to the issuer that a refund has been issued. This prevents the chargeback in most cases.
These alerts prevent confirmed fraud and consumer dispute chargebacks.
The success rate depends on many factors, but generally, there is a variable success rate that these alerts can prevent a chargeback, depending on the participation of issuing banks, dispute types, etc. Refunding these alerts does not guarantee that a chargeback will not be issued.
Are descriptor prefixes (example: “BLS*”) part of the descriptor when it's used during the payment process?
Yes, the prefix is considered part of the descriptor.
- The cardholder calls their issuing bank and files a dispute.
- The issuer sends a notification to Ethoca and/or Verifi (if the issuing bank is on the Ethoca and/or Verifi network and if the merchant is enrolled in Ethoca and/or Verifi).
- Ethoca and/or Verifi send the alert notification to BlueSnap for a refund.
- It is possible to receive an alert for the same transaction from Ethoca and Verifi because a few issuing banks provide alerts to both companies. However, once a transaction is refunded, BlueSnap does not allow a duplicate refund to be issued on the same transaction.
- BlueSnap issues a refund to the shopper and marks the outcome as "Refunded" in the Ethoca or Verifi portal.
- Ethoca or Verifi takes the refund action notice and sends it back to the issuer so they can advise the cardholder, which should prevent the dispute from becoming a chargeback.
There is no guarantee that chargeback prevention alerts will eliminate all chargebacks. Under certain circumstances, there may still be a chargeback even if the transaction is refunded. The success rate depends on many factors. That said, there is about a 90% success rate of alerts preventing a chargeback.
Yes, prevention alerts do have associated fees. If you have questions about the fees associated with these services, please refer to your merchant agreement or contact your Account Manager or BlueSnap Merchant Support.
My company does not use a subscription or recurring model. Will chargeback prevention alerts help with our chargebacks?
Yes. Even if you don't use a subscription or recurring billing model, these alerts are still applicable and can still be helpful in reducing chargebacks.
Chargeback prevention alerts by Ethoca and Verifi are notifications of confirmed fraud and customer disputes that will result in a chargeback unless a refund is issued. When you enroll for chargeback prevention alerts through BlueSnap, BlueSnap receives the alerts, issues refunds to shoppers, and notifies the issuing bank that a refund has been issued on your behalf.
Chargeback prevention alerts curb disputes filed under confirmed fraud and customer dispute reason codes.
No, this is not currently an option.
All Verifi cases are classified as "disputes".
A merchant may opt out of alerts under a specific dollar amount; however, it must be applied to all descriptors for that specific merchant.
Alerts that come through are either fraud or non-fraud (dispute). Confirmed fraud alerts are determined by the type of chargeback submitted by the cardholder with their issuing bank. They perform an interview to determine the reason for the chargeback and assign a reason code to the chargeback that falls under either collaboration(non-fraud/dispute) or allocation(fraud).
TC40 and SAFE reports are documents filed by issuing banks when a cardholder claims that a charge on their account is fraudulent. The reports are sent to the card network (Visa and Mastercard, respectively) and the merchant's bank.
- TC40: TC40 is the name of the report that issuing banks send to Visa to report fraudulent transactions as part of its Risk Identification Service.
- SAFE: SAFE (System to Avoid Fraud Effectively) is a Mastercard initiative (similar to Visa's TC40/SAFE) documenting cardholder fraud claims and relevant data points.
When a shopper makes a fraud claim, their card-issuing bank generates a TC40/SAFE or SAFE data claim. This claim is sent to banks and credit card brands, including Visa and MasterCard. Merchants are not initially notified of these claims. The reports include:
- Merchant details
- Bank details for those involved in the transaction
- Transaction details such as when and where it occurred
While this data is not easy to access, it can be used by merchants and processors to help strengthen chargeback prevention strategies.
A TC40/SAFE data claim is typically released within days of an initial fraud report, but these claims do not stop the chargeback from being filed. Because of this, merchants cannot rely on just TC40/SAFE data to defend themselves against chargebacks.
- Someone places an order on OnlineStore.com.
- The cardholder did not authorize it and decides to dispute the transaction.
- The customer calls their bank and states they did not authorize the transaction (i.e., fraud) and wants to dispute it
- The Bank Employee on the phone fills out a dispute transaction form (BOA9287, for example). When they click submit, two things happen:
- A TC40 Fraud alerts is automatically created and sent out to warn the card brands and processors of fraud (this is instantaneous)
- A Chargeback dispute is started (This can take 24 to 72 hours to process, get documented, and pushed out to the merchant for debiting). Following are the steps at the bank for a chargeback dispute:
1. Day 1: Bank teller creates a report.
2. Day 1: The report is sent to the bank's chargeback team.
3. Day 1: The chargeback team issues a temporary credit to the customer account pending investigation.
4. Day 1 & 2: The bank's chargeback analyst will track down the transaction being disputed. They will check if the transaction was refunded, if the transaction is just a pre-auth that will drop off, or if the transaction had a send transaction associated with it, such as a refund via a new transaction number with the same exact $ amount from the same merchant.
5a. Day 2: If step 4 is cleared and no refund is posted, it is then pushed out to the processor to debit the merchant for the chargeback pending investigation and pending representment documentation results
5b. Day 2: If at step 4 they identified the disputed transaction was already refunded, then the chargeback is voided out of the system (reversed) like it never happened.
5. The processor captures the TC40 alert as soon as it is sent out (sometimes it is so fast that this can happen while the customer is still on the phone)
6. The processor notifies BlueSnap that a TC40 alert was created.
TC40 and SAFE data are used to determine which merchants have high enough levels of fraud to qualify them for interventions such as the Visa Fraud Monitoring Program. The metrics Visa looks at to calculate high or excessive fraud activity (the total monthly value of fraudulent transactions and the monthly ratio of fraud dollars to sales dollars) are derived from TC40 reports, not from chargebacks.
It can take several days for a TC40/SAFE data claim to be released, and the claim does not stop chargebacks from being filed. Therefore, merchants should not rely solely on TC40/SAFE data to defend against chargebacks.
TC40 and SAFE data is informational only and does not prevent chargebacks on its own. TC40/SAFE data can be used in conjunction with prevention alerts or other dispute resolution tools to help decrease chargebacks.
To sign up, please contact your BlueSnap account representative or email our customer service team at [email protected].
When a shopper files a dispute, Visa and the shopper’s bank will refund the total payment amount and notify us so we can ensure your BlueSnap account reflects any adjustments. Then BlueSnap will notify you of each RDR case via email, even for non-BlueSnap MIDs. This is a unique benefit of working with BlueSnap.
Once you receive this notification:
- Do not refund the shopper, as Visa has already reimbursed the shopper on your behalf.
- Be sure to stop shipment on any pending items.
- You may also want to block the shopper from any future purchases.
Merchants can view RDR adjustments in their Daily Payout Summary Statement and Running Balance reports.
No, RDRs are identified as pre-chargeback dispute resolutions and are not considered chargebacks.
No, RDR occurs before a chargeback is created and will not be considered when calculating a merchant's Visa chargeback ratio.
If RDR stops a chargeback, there will be no chargeback fee because a chargeback didn't happen. There is a fee if the merchant buys RDR from BlueSnap; they will be charged for each RDR case according to their pricing agreement. Any chargeback not stopped by RDR will still incur a chargeback fee according to their pricing agreement.
Yes, merchants must pay two types of RDR fees:
- RDR Dispute Resolution Fee: This fee applies to merchants enrolled in the BlueSnap RDR service. Our RDR service includes: signing the merchant up with Visa, providing merchants with access to the Visa portal to set their RDR rules, and real-time RDR email notifications when an RDR occurs. The cost varies based on the merchant's MCC (Merchant Category Code) and is charged per RDR.
- RDR Handling Fee: This fee is charged for every RDR transaction that BlueSnap processes. Merchants purchasing the RDR service from an external party are charged a higher fee per RDR transaction than if they purchased the RDR service directly from BlueSnap. This fee covers the handling of RDRs, including debiting the merchant and the system processing required for features like detailed reporting.
No, though RDR should stop all disputes that meet a merchant’s RDR ruleset before they become chargebacks. The value of RDR is in the option to customize rules to avoid a dispute via an automated refund. Whether that decision is to accept or decline, the service of decisioning the RDR case has been provisioned. There is additional value in having insight into which chargebacks a merchant’s RDR rules did not stop. Proof that a refund was issued should be submitted in your response to the chargeback.
No, BlueSnap will prevent you from issuing a refund for transactions where an RDR occurred.
What is the process for recovering a duplicate refund made for an RDR-accepted case subsequent to a refund by a merchant?
If an RDR-accepted refund is issued after a merchant-issued refund, alert BlueSnap and we will attempt to recover the duplicate refund.
Yes, the RDR Dispute Resolution Fee will still be charged. The value of RDR is in the option to customize rules to avoid a dispute via an automated refund. Whether that decision is to accept or decline, the service of decisioning the alert has been provisioned. There is additional value in having insight into which chargebacks a merchant’s rules did not stop.
Merchants using both Verifi alerts and RDR will not see duplicate cases. If an issuer is using both Verifi alerts and RDR, a seller will be sent a Verifi alerts case to action, and the RDR case will be declined. There may be conditions when Verifi receives an RDR for the same sale transaction previously resolved through the Verifi alert network. Upon receiving an RDR-eligible pre-dispute transaction, the Verifi system checks for a previously resolved Verifi alert case that matches the same transaction and if identified, the RDR is declined.
Additionally, alerts and RDR could hit different BINs; some issuers might not participate in alerts but RDR is mandated by Visa. Visa/Verifi has logic built in that makes sure only an RDR or a Verifi alert is created on a pre-dispute, not both. This means there shouldn’t be a double refund case (Note: This is a possibility with Ethoca, though not probable; the Ethoca alert might take a day or two to hit the Ethoca system. RDR refunds are immediate so should precede an Ethoca alert).
Furthermore, RDR is only for Visa transactions and the Verifi alert network includes some Mastercard, AMEX, and Discover BINs. So, while RDR is great to assist on the Visa Dispute side, Verifi alerts are still helpful with the other networks.
Merchants using all three solutions would see an Order Insight inquiry, and then a prevention alert if the dispute was not stopped by the Order Insight response. Prevention alerts supersede RDR.
For the most comprehensive chargeback prevention strategy, we recommend merchants take advantage of RDR, Order Insight, and prevention alerts. RDR and Order Insight are only for Visa, while prevention alerts cover all the major card brands. These tools work to prevent chargebacks on other brands as well. Contact us to develop your custom approach to avoiding chargebacks.
Visa has announced updates to its chargebacks dispute rules. What does that mean for me?
There are some newly introduced changes to rules around disputing chargebacks. Find FAQS below. For more details, visit our dedicated blog post.
Are there any changes to the evidence that needs to be provided for disputes related to “Dispute Condition 10.4: Fraud — Card-Absent Environment”?
You need to provide evidence of two or more previous undisputed charges on the same card.
Currently, acquirers can supply evidence that includes (but is not limited to) photographs or emails to prove their case. This new rule limits the allowable proof.
Yes, there are fewer pieces of evidence that you need to provide. Previously you had to provide all the items on Visa’s list but with this update, you only need to supply a minimum of 3 of the items from their list.
Currently, there is no clearly stated rule preventing issuers from initiating chargebacks under “Dispute Condition 13.2: Cancelled Recurring Transaction”. Issuers are not currently required to prove the shopper canceled their payment method or provided alternate payment instructions, or how the shopper contacted the merchant. Now, shoppers will not be able to use this reason code to cancel their subscription because they would prefer to work with their bank instead of the merchant.
Updated about 1 month ago