How dispute prevention worksPublic preview

Learn about the benefits and requirements of Stripe's dispute prevention solution using Verifi and Ethoca.

Stripe has integrations with dispute prevention products offered by Verifi (a Visa solution) and Ethoca (a Mastercard solution).

Verifi and Ethoca solutions

The Verifi solution includes Order Insights (OI) and Rapid Dispute Resolution (RDR), and Ethoca includes Ethoca Alerts. Our integrations allow you to use these products without manual setup to help reduce your dispute rate and increase revenue retention. Learn more about pricing on Stripe Pricing.

Enrolling in Dispute Prevention helps by reducing your dispute rates and lowering dispute fees. It also helps you avoid network fines and Stripe payment volume reserves.

Rapid Dispute Resolution (RDR)

RDR lets you construct a ruleset to resolve incoming disputes on Visa transactions for a fee per dispute (for example, resolve all potential fraud disputes under 10 USD). The main benefits of RDR are:

Resolved disputes don’t count towards your overall dispute rates, helping you stay out of monitoring programs.
You don’t pay a separate dispute received fee on these resolved disputes.

Note

Verifi doesn’t currently support partial dispute resolution. This means RDR only resolves disputes when the cardholder disputes the full amount of the original transaction.

Ethoca Alerts

Ethoca Alerts allows users to construct rulesets to prevent what would be chargebacks by setting up automatic resolutions. Ethoca Alerts is available for Mastercard transactions and resolved disputes don’t count towards dispute rates, helping merchants exit Mastercard’s chargeback monitoring programs such as ECM, HECM and EFM by reducing dispute rates, and lowering fines.

Note

The rules you set only apply to chargebacks initiated after enrollment. After you enroll, you might continue to receive notice of chargebacks initiated by cardholders before your enrollment.

RDR and Ethoca Alerts requirements

Neither of the two solutions require any separate integration effort. However, the onboarding process requires you to set up resolution rules through Radar to access dispute resolution, and define which transactions to refund. Learn more about setting rules through Radar.

Order Insight (OI)

If a cardholder checks their digital banking app or calls their issuer to say they don’t recognize a Visa charge and you’re enrolled in OI, the issuer’s customer support agent can send an API request to Stripe (a lookup) to provide detailed descriptions of the purchased items (such as product descriptions, quantity, shipping address, or IP address). The additional data helps the cardholder recognize the charge and prevent follow-through on disputes. OI also uses Visa rules such as Compelling Evidence 3.0 (CE 3.0). CE 3.0 allows you to send issuers data about earlier successful transactions with the same cardholder as a response to a lookup. The issuer is then required to block the cardholder from filing the dispute at all. See Compelling Evidence 3.0 with OI for more information.

Cardholders are less likely to follow through on filing a dispute if they can recognize the charge. The chance of successfully deflecting a dispute when you initiate a lookup depends on the quality of the data that Stripe can provide. Stripe automatically pulls any available data on a charge on your behalf and sends it to the issuer. Stripe uses the data that you provide at the time of the charge, and doesn’t require you to build any integrations or maintain a real-time service. See the list of fields below that are eligible as part of the lookup response. By using the OI service, you direct Stripe to share this data with issuers and ultimately with cardholders. Verifi might occasionally update these fields, and your continued use of the OI service depends on your adapting to any new operational requirements.

Note

For a dispute to be eligible for a block using CE 3.0 rules, Stripe must have prior transaction data available. See Compelling Evidence 3.0 with OI for what data is required for CE 3.0 blocks. If prior transaction data isn’t available, Stripe still sends any other available data.

When you use dispute prevention, you agree to comply with Stripe’s reasonable requests and to provide additional data as needed.

Object	Field	Description
Receipt	orderDate	Order date
	orderNumber	Unique identifier for the order defined by the business
	invoiceNumber	Invoice number (alternate to order number)
	subTotalAmount	Subtotal amount of the purchase before tax and shipping fees are included
	shippingAndHandlingAmount	Shipping and Handling amount related to the purchase
	orderTotalAmount	Total amount of the order
Payment information	paymentMethod	Masked representation of the card and card number of the original purchase as displayed on the physical or digital receipt. Limited to the last 4 digits of the card PAN.
	billingName	First and last name from the card
	paymentTotalAmount	Payment amount of the purchase
	cvvChecked	Card security code validation at time of purchase
Product purchased	productDescription	Detailed description of the product (merchandise or service) purchased
	unitPriceAmount	Amount of the individual item
	quantity	Quantity of the product purchased
Customer information	firstName	Customer’s first name
	lastName	Customer’s last name
	lengthOfRelationship	Length of customer relationship with the business in number of months
	accountId	Cardholder registered identifier to uniquely identify their account with the business. This needs to be recognizable to the Cardholder (not an internal system identifier) and something they provided the business during account creation. Examples are a unique username, email, phone number, or other similar value.
	emailAddress	Email address that customer provided
Billing address	address1	Street address plus additional address lines such as suite number and apartment
	address2	Street address plus additional address lines such as suite number and apartment
	city	Name of city
	region	Region or state
	postalCode	Zip or postal code
	country	Country code
Merchant information	merchantName	Corporate or parent company name of the business, This might or might not be recognizable to the consumer.
	merchantUrl	Business’s corporate URL. Might be different than the websiteUrl where the customer made the purchase from.
	merchantContactPhone	Business’s customer service phone number. This should be the number that you would want a consumer to contact you to discuss any questions they have about the purchase.
	merchantAddress	Business’s corporate address
	termsAndConditions	Overview of cancellation policies for businesses
	storeDetails	A business might have multiple stores or locations that purchases are made from. The store details should indicate where the purchase was processed or the online webstore details.
Store details	storeName	Store or webstore name where the purchase was made
Store details	storeContactPhone	Business’s customer service phone number
Delivery address	address1	Street address plus additional address lines such as suite number and apartment
	address2	Street address plus additional address lines such as suite number and apartment
	city	Name of city
	region	Region or state
	postalCode	Zip or postal code
	country	Country ISO 3166-1 code alpha-3
Delivery details	shippingCarrier	Shipping carrier
Delivery details	trackingNumber	Tracking number of the shipment or delivery
Device	ipAddress	IP Address associated with the device

Compelling Evidence 3.0 with OI

Compelling Evidence 3.0 (CE 3.0) is a program that benefits businesses by providing more aggressive tools to deflect and remedy first-party misuse (friendly fraud) disputes on Visa transactions categorized as 10.4 Other Fraud—Card Absent Environment. CE 3.0 rules dictate which evidence can be provided post-dispute to improve your chances of winning a dispute. To learn more, see our support article.

If you’re enrolled in OI, you can also use CE 3.0 pre-dispute to completely block the dispute from being filed. This works by providing the required prior transaction data to issuers during a lookup. If prior transactions between you and the cardholder exist, Visa automatically selects the 2-5 most recent non-fraud prior transactions and requests data on all of them. Stripe then automatically provides all available information.

If at least two prior transactions exist with complete product descriptions that have matching IP addresses and at least one matching email address or customer delivery address, the issuer must block the dispute. As a result, the dispute is never filed and you don’t incur any dispute fees or increases to your dispute rate.

OI Requirements

The onboarding flow in the Stripe Dashboard collects all the data elements that Stripe needs to begin servicing OI lookups on your behalf. These include Business name, Business URL, Business Phone Number, and Email. To achieve the best possibility for deflected disputes, make sure your Stripe integration is set up to provide as many of the above fields as possible at transaction time. To ensure that Stripe can effectively block disputes on your behalf with CE 3.0, make sure that all your transactions include IP Address, Customer Email Address, Product Descriptions, and if possible, Shipping or Customer Address.