July 29, 2019
UPDATED April 9, 2020
VMPI is a product that arms merchants with the ability to stop potential chargebacks before they are even filed. Visa created VMPI to help reduce chargeback disputes. Their idea was that if there were fewer misunderstandings, there would be fewer chargebacks. And, that this would lead to greater customer satisfaction for both merchants and cardholders.
VMPI achieves this by creating a platform that encourages direct dialogue (via data exchange) between consumers, banks, and merchants. Enrolling for the VMPI product empowers you to respond to chargebacks during the complaint stage. Our VMPI integration allows you to act automatically (in real-time) by providing additional information (i.e., shipping confirmation, cancellation number, product name).
As you know, under the old system, if a cardholder called the issuer with a complaint, that complaint simply turned into a chargeback. After that, it was up to you to defend the transaction, and to pay all mandatory chargeback fees, regardless of the outcome. Now, through VMPI, you can resolve a claim before the issuer officially files a chargeback.
The Dispute Inquiry is sent to Visa (from the issuing bank), who then passes it to sticky.io. sticky.io checks to see if the merchant is enrolled in VMPI. If the merchant does not participate in VMPI, the case will likely be escalated to a chargeback automatically. If the merchant is enrolled in VMPI, the sticky.io platform creates a digital evidence packet containing all transaction information and supplemental order data, which is then sent immediately back to Visa. Visa reviews the information and renders a decision based on dispute rules.
Note: Since VMPI applies to all Visa transactions (regardless of the issuing bank) no other outside "alert network" is required. This cancels out the inherent challenge of a legacy "alert" being issued only if the issuing bank was part of that network.
With VMPI, we allow the merchant to choose between two different strategies to most effectively utilize the service, Dispute and Refund.
- Dispute: Automatically provide the issuing bank with more information about the transaction to possibly prevent the chargeback. i.e. The customer calling to chargeback because they didn't receive the product, yet the merchant can provide evidence that it was delivered via the tracking number from sticky.io.
- Refund: Automatically refund the customer when a VMPI is received to prevent the chargeback.
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