Visa UK Takes Aim at Friendly Fraud with New Protections for Businesses
To combat the rise of ‘friendly fraud,’ Visa is safeguarding businesses. About 90% of small businesses faced increased instances of this issue in the past year. Up to 20% of sales were disputed due to reasons like unintended child purchases or forgotten gym memberships. Visa’s response is the Visa Compelling Evidence 3.0 (CE3.0) approach.
CE3.0 enables businesses to verify disputed charges’ legitimacy without impacting valid consumer claims. Mandy Lamb, Visa UK and Ireland’s MD, highlighted small businesses’ importance and the need for evolving protective solutions. CE3.0 requires businesses to provide records of two prior undisputed transactions, same payment method, within 120 to 365 days before the dispute. Consistent IP address or device ID/fingerprint across transactions is vital, along with another matching element.
These measures bolster protection and provide solid proof of disputed transaction legitimacy, guarding against ‘friendly fraud’ and preserving businesses’ revenue.