Visa 2023 Chargeback Rule Changes: A "Blessing" or a "Curse" for CNP merchants?

Fraudology is presented by Sardine.

3 weeks ago, Visa made an announcement....that they were going to make an announcement about chargeback rule changes for 2023 on 2 webinars beginning the following week. In their pre-announcement, they stated the rule changes would be a welcome change for online merchants, who have been long plagued with 1st party fraud ("friendly fraud") chargebacks, that continue to rapidly increase. There was a buzz & excitement among enterprise merchants and online payments & fraud experts, hopeful that this information would reduce 1st party fraud chargebacks in the eco-system, and bring more fairness to CNP merchants in the chargeback process.

But, after the webinars commenced, merchants were confused. Did they understand them correctly? Will this be the game-changing "solution" to reducing this issue as promised? In this episode, Karisse puts on her chargeback nerd "hat" and provides a deep dive into the rule changes as she understood them.

• Will these changes benefit merchants in a reduction of lost revenue due to friendly/1st party fraud?
• How will these changes impact chargeback recovery (representment) rates?
• Is Visa's solution that they suggest, the only way to solve this issue?

*All information within this episode are Karisse's interpretations of what was shared by the Visa Risk team on the webinar for MRC members on 6-23-22, and the public-facing webinar on 6-28-22; all opinions & open questions are her own or were shared with her by fraud & payments professionals for enterprise-level merchants requesting anonymity. For the rule change information straight from Visa, the MRC webinar can be accessed by MRC members in their member library or will be available on the Visa Merchant website soon. For questions, contact your acquirer or your Visa representative (if you have one).

If a representative from Visa is willing to join Karisse on a future episode of Fraudology to correct any of this information and/or answer additional questions, please reach out via LinkedIn.

Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.

Connect with her on LinkedIn

She brings her experience, expertise, and extensive network of experts to this podcast semi weekly, on Tuesdays and Thursdays.

Mentioned in this episode:

2023-q4-postroll sardine 1