The chargeback process has been unfair to merchants since its inception. VISA has recently made a commendable effort to balance the scales and help them reduce chargebacks under the Visa Claims Resolution (VCR) program. The Visa Merchant Purchase Inquiry (VMPI) sits at the heart of this program. Merchants must enroll in the VMPI to take advantage of this program, so here’s how you can avail yourself of the benefits it offers merchants.
THE TL/DR ON VMPI
For VCR, you can catch up on the big picture here. But the VMPI is really where the VCR gets its traction. With it, VISA plays like a conduit between cardholder banks and merchants; first by notifying the merchant that a cardholder initiated a dispute, and then second by relaying the merchant’s response back to the issuer. Think of it as an optimized representment where claim and response happen in near-realtime. Essentially, the merchant can present their compelling evidence directly to the issuer before a dispute becomes a formal chargeback.
The advantages of this new process are that disputes are resolved much quicker and the merchant can eliminate chargebacks with a compelling case. VMPI was beta tested by VISA in Hong Kong and New Zealand, and data showed a 14% drop in chargebacks. It is now deployed across VISA Inc., but the data is still pending, and there are significant disadvantages to consider.
First, a disadvantage for the merchant: the cardholder can press the dispute, despite compelling evidence, so they still lord over the process as always. An even bigger, systemic disadvantage could sour VMPI’s adoption: sensitive transaction data must be shared with VISA, and some see this as a ploy by VISA to mine it.
For now, the VMPI is moving forward. We encourage merchants to give it a try, because it presents another tactic in reducing chargebacks.
PREVENTING CHARGEBACKS WITH VMPI
Merchants need to enroll in the VMPI to use it. They also need to keep their transaction data accessible to send it along. Both are fairly complex. Connectivity to VMPI requires 141 data fields integrated from your CRM, gateway, and/or fraud firewall. ChargebackHelp is an authorized VMPI Facilitator, and our API can already access those fields. If you’re our client, you’re all set.
And ditto with your transaction data. ChargebackHelp already integrates your transaction data, CRM, and gateway in order to send compelling evidence to a dispute, on demand and in realtime. Through VMPI, we can win disputes before they become chargebacks, keeping your revenue where it belongs.