Visa Merchant Purchase Inquiry Guide for Beginners

I'm selling digital products online and developing a chargeback prevention strategy. I learned about Order Insights and thought it might help prevent chargebacks.

I'll explain what it is, how it works, its success rate, and if it's worth using. If so, I'll tell you how to use it.

Let’s take a look at this plugin.

Key Takeaways

• Visa changed Visa Merchant Purchase Inquiry to Order Insights in 2019.
• It lets merchants send more order info to issuers and cardholders.
• Some merchants have seen an 80% drop in disputes with Order Insights.
• It only works for Visa transactions.
• It’s free to use.
• Access it through Verifi or resellers.

What Is Visa Merchant Purchase Inquiry?

Visa Merchant Purchase Inquiry (VMPI) is an API for resolving disputes between merchants and cardholders. It streamlines the process by providing more details of an order. This plugin works for all dispute types.

The information merchants would provide to issuers/cardholders includes:

• Product details
• Quantity
• Tracking info: Shipper and tracking number
• Delivery status
• Device used
• Merchant info

These are just a few of the many details you could send.

Anyway.

Visa merged VMPI with Order Insights and gave it to Verifi — a solution they own.

I’ll use both names interchangeably throughout this guide.

Visa created this program with the goal of reducing friendly fraud through communication.

The goal is to “talk off” the pre-dispute. Potentially preventing it from escalating to a chargeback.

This plugin has actually lowered chargeback rates for sellers. I’ll get into this in a bit.

I’m sure most of y’all know what an API is.

Just in case, I want to provide a quick definition and what it means in this context.

An API (Application Programming Interface) allows different systems to share data.

For merchants, this means their system can connect with other services, like banks. It helps automate tasks, like sharing transaction details.

There are some differences between VMPI and Order Insights that we should mention.

Summary: Allows sellers to send more details about an order to a customer.

Visa Merchant Purchase Inquiry vs. Order Insights

Visa Merchant Purchase Inquiry (VMPI) began with 3 “Call Types”. These are groups in Visa's VMPI system for sorting dispute notices.

Here’s what each does:

• Call Type 1: Visa sent transaction data (device IDs, etc.) to cardholders’ online statements.
• Call Type 2: Flagged confirmed fraud cases using Visa’s fraud data (TC40).
• Call Type 3: Included other disputes, like processing or authorization errors, requiring more action or review from merchants.

In 2019, Visa bought Verifi.

This led to changes:

• Call Type 1 became Order Insight.
• Call Types 2 and 3 joined with Verifi's tools to form Visa Resolve.
• Visa Resolve now handles refunds through both systems.

Visa then ended VMPI. Sellers had to switch to Verifi's Order Insight API.

And Order Insight improved on another issue. Integration.

VMPI only worked when buyers called banks. Order Insight works in bank apps and websites. This makes it easier for buyers to see their info.

But wait.

What is Visa Resolve Online (VROL)?

Summary: Order Insights uses a different API and made it easier to integrate for issuers.

And What Is Visa Resolve Online?

Visa Resolve Online is a portal for managing disputes. It makes chargeback handling, evidence submission, and resolution easier. This tool simplifies dispute management and improves efficiency for merchants.

This is where Visa-related disputes go through.

And Visa created this as a part of their Visa Claims Resolution initiative in 2017. The goal was to streamline the dispute process.

We talk more about this tool in another article. Read it to learn more.

For now, let’s continue on with how VMPI/Order Insight works.

Summary: A portal used for managing disputes.

How Does Visa Merchant Purchase Inquiry Work?

Visa Merchant Purchase Inquiry works by letting banks inquire about disputed charges through VROL. Merchants can then respond with transaction details or issue refunds.

Here’s the process:

1. Buyer calls the bank.
2. If both sides use VMPI, the bank sends a VMPI request to the seller.
   1. If not, the process continues down the chargeback alert timeline.
3. If they support VMPI, the issuer sends a VMPI request to the merchant.
4. Seller sends one of the following:
   1. Credit/refund
   2. Transaction-specific data
   3. Data and refund
5. Issuer reviews the sent information.
6. The next step depends on whether the issuer and cardholder resolve the issue:
   1. Yes: Case closed.
   2. No: Process continues as an alert (if applicable).

If the seller uses Compelling Evidence 3.0 (CE 3.0), the bank may stop the dispute.

CE costs money per dispute blocked, but will review merchant information. If said information proves the order is legit, the dispute doesn’t continue.

And here’s a visual that might help:

Screenshot source: Visa

Can you tell if a bank uses VMPI?

Not really.

But almost all Visa issuers use it.

A source suggests that issuers process 70 – 95% of their chargebacks through VMPI [1].

What do I mean when I talk about alerts?

A chargeback alert (e.g., RDR, CDRN, and Ethoca) is a notification a merchant receives during a pre-dispute.

The seller then has a chance to refund the customer or prepare for a dispute.

These alerts will happen IF:

• You’re signed up for alerts;
• The issuer is signed up for alerts; and
• The cardholder uses a card that’s supported by the alert networks

I explain everything about alerts in a separate guide.

Before going there, you should know whether they’re worth getting.

It depends.

If your chargeback rate is close to 1%, you’ll definitely need to sign up for these. They can reduce chargeback rates by up to 91% for some businesses.

They work better for some industries than others.

For instance, they’ve prevented more chargebacks for digital product sellers than tangible goods vendors.

Just open the guide in a new tab.

Meanwhile…

You should do additional things after sending information or a refund.

Let’s see what there is to do.

Summary: The seller gives the issuer details about an order.

What to Do After a VMPI Request?

If you’re using Order Insights (VMPI), you’ll want to do the following depending on your response:

Refund as resolution:

• Stop order fulfillment.
• Note the refund in your CRM.
• Flag the cardholder if there's friendly fraud.
• Remove access to digital products.
• Stop recurring billing right away.

Information as resolution:

• Get evidence ready if the issue grows.
• Record the request in your CRM.
• Watch the order for changes.

These steps stop customers from getting free items.

You’re probably wondering who VMPI is for.

How’s This Different from a Chargeback Alert?

Depending on what your software situation looks like, here is where VMPI/OI would sit:

• Stage 1: ID verification: AVS, CVV, 3D Secure, etc.
• Stage 2: Fraud detection software kicks in.
• Stage 3: Order Insight (VMPI) and/or Consumer Clarity.
• Stage 4: CDRN or Ethoca alert.
• Stage 5: Rapid Dispute Resolution or Collaboration (Mastercard).

I said “depending on your situation” because you’d need to figure out how crazy you want to go with dispute prevention.

We have a separate guide that’ll help you choose the right tools.

The above list would be applicable to folks with HIGH chargeback rates.

Does that mean Order Insights is necessary?

Who Is Visa Merchant Purchase Inquiry For?

Visa Merchant Purchase Inquiry is for sellers who process Visa transactions and need detailed transaction information. It's useful for folks investigating disputes, reconciling accounts, or identifying fraud.

Visa now allows merchants of any size to use Order Insights. It used to be that only larger sellers could use it due to supposed staffing shortages in Visa.

This program works best for anyone who wants to reduce chargeback rates. For instance, it’ll work better for sellers who have a chargeback ratio of 0.5% or higher.

This rate doesn’t mean you’re in danger. But you’re close to the warning tier for the Visa Dispute Monitoring Program.

You should know what to do with VMPI by now. But let’s review, just in case.

Summary: Use this if you want to reduce chargebacks and fraud.

What Merchants Should Do with VMPI

Merchants should preload transaction details into Visa Merchant Purchase Inquiry (VMPI). This allows issuers to access information when disputes arise. By providing this data, sellers can help prevent complaints from escalating.

Before deciding whether VMPI is for you, let’s see its strengths and weaknesses.

Pros & Cons of VMPI

Pros:

• Speeds up dispute fixing
• Stops fraud with device IDs and delivery proof
• Helps buyers remember purchases
• Cuts down on chargeback costs

Cons:

• Requires technical integration, which may cause development challenges
• Not flexible, as it's tied to Visa's systems

If you also accept Mastercard, you’ll also want to use Consumer Clarity. It’s the same thing as Order Insight.

Otherwise, I’ll discuss how to sign up for Order Insight in a bit.

I keep saying that VMPI reduces chargebacks. But does it really?

Does VMPI Really Reduce Chargebacks?

Yes, VMPI reduces chargebacks. Visa's beta test in Hong Kong and New Zealand showed a 14% drop in chargebacks. Some resellers suggest that it has prevented 30 – 80% of pre-disputes from escalating to chargebacks [1].

And since a chargeback is prevented, it doesn’t count toward the seller’s chargeback rate.

This rate is the most important part of chargeback management. Keeping your rates low prevents issuers from seeing you as a “high-risk” vendor. And from placing you in dispute monitoring programs.

Such programs can result in:

• Extra chargeback fees
• Fines in the tens of thousands; and
• The loss of your ability to process some cards

When I first saw Order Insights, I thought to myself, “How could showing a customer order details make a difference in chargeback rates?”

Visa saw more than 2.9 million disputes in 2016 because folks didn’t recognize an order [2].

They also suggest that unrecognized transactions make up around 80% of all chargebacks. Whether through true fraud or first-party fraud.

Maybe by now I’ve sold you on getting Order Insights.

Let’s see how you’d do that.

Summary: Has prevented up to 80% of disputes for some sellers.

Here’s How to Sign Up for Visa Merchant Purchase Inquiry

Visa Merchant Purchase Inquiry doesn’t exist anymore. You can only sign up for Order Insight.

You’ll need to contact Verifi to set up a SellerID and activate it.

If you’re a Stripe seller, request to join their Verifi beta.

This gives you access to:

• Rapid Dispute Resolution
• Compelling Evidence 3.0; and
• Order Insights.

The cost will vary by merchant category code for the first 2 services.

Some resellers, like Chargebacks911, offer OI as a part of a chargeback management package. But these cost $1,000 a month (on the low end).

Otherwise, there aren’t many options.

You might have read through all of this and wondered what happens if an issue becomes a chargeback.

You won’t like the results.

Summary: Contact Verifi or go through a reseller.

What is the Visa Dispute Process?

• How Long the Dispute Process Lasts: 75 – 120
  • Visa prefers to have it done under a month
• Chargeback Fee: $10 – $20 per dispute

Here’s what the process would look like if VMPI and alerts don’t work:

1. Acquirer removes funds from merchant’s account.
   1. Issuer gives the customer a provisional credit.
2. Seller decides whether to fight the dispute.
   1. If yes, they gather and submit evidence.
   2. If not, you accept the loss.
3. Issuer reviews the evidence and makes a decision:
   1. Seller wins: Chargeback reversed; fee stands.
   2. Customer wins: Chargeback stands.

The terms “chargeback” and “dispute” are technically the same. Most issuers and acquirers use them interchangeably.

There’s no trick to winning disputes.

If you don’t have enough evidence to prove an order was legit, your chances of winning plummet. Otherwise, the average win rate among all industries is around 30%.

Refer to our Visa chargeback guide for more information.

Otherwise, it’s time to wrap this up.

Conclusion

VMPI (now Order Insights) has proven to reduce chargeback rates for merchants in various industries. And it can potentially save you from having to pay for chargeback alerts.

However.

You might need to use these alerts to reduce chargebacks. As they’re one of the more effective ways of doing so.

Getting access to them is a bit time-consuming, though. That’s why you should consider a certified reseller like Chargeback. Reach out to us and learn how we can help.

Sources

• [1] VMPI fact vs. fiction. Merchant Risk Council. 10/01/2019.
• [2] Visa Merchant Purchase Inquiry. Visa. PDF download.