What is the flow of a Chargeback / Dispute?
You can find detailed information on chargebacks and disputes in Disputes. For a definition of c...
How does the fraud score work?
As part of RevenueProtect, Adyen performs fraud checks on each transaction. The outcome of these ...
As part of RevenueProtect, Adyen performs fraud checks on each transaction. The outcome of these checks is the fraud score.
There are two types of fraud checks:
- Pre-authorisation checks are performed before the authorisation takes place, such as shopper behavior, referral list checks, and so on.
- Post-authorisation checks include data that is received by issuers, such as AVS data and CVC codes.
If both types of checks together add up to 100 or more, the transaction will have a Received and Refused status.
To check the fraud score for a specific payment, in the Customer Area go to Transactions > Payments > Search for payments > Fraud Scoring.
You can change the calculation for a fraud score, or disable fraud score criteria in Risk > Risk profiles. Take care when changing settings, as if this is done incorrectly you may cause all payments to be refused.
I have a question about Visa Claims Resolution (VCR)
Below are the most frequently asked questions concerning Visa Claims Resolution (VCR) based on yo...
Below are the most frequently asked questions concerning Visa Claims Resolution (VCR) based on your feedback.
If you have any further questions please contact your local team:
What is VCR?
Visa’s new dispute resolution programme.
When will VCR be effective?
14 April 2018, for all regions.
VCR is already live in Hong Kong and New Zealand.
Is VCR mandatory?
Yes, VCR is mandated for issuers, acquirers and merchants. Visa requires all parties to be ready for the April 2018 launch.
How are disputes before the VCR migration date handled?
Disputes submitted before the deadline (in flight disputes) will be processed under the current rules and time frames.
Adyen processes disputes created by issuers within 0-3 days, some chargebacks raised by issuers close to the VCR deadline may still follow the old dispute flow (despite that the chargeback in the Adyen Customer Area is booked after 13 April 2018). Therefore, please note that April 14, 15, 16 and 17 may still feature disputes following the old (current) flow. Therefore, merchants should be prepared to handle both VCR disputes as well as disputes in the current flow.
What are the main changes with VCR?
- The existing 22 reason codes will be replaced by new reason codes and grouped into 4 categories, Fraud, Authorisation, Processing Error and Consumer Disputes. Please review the Adyen VCR manual for an overview of the reason codes.
- Disputes will be routed in two different workflows, called Allocation and Collaboration (please review the Adyen VCR manual for more information on these workflows).
- Dispute response time frame will be reduced to 30 days (currently 45 days). Please be informed that in the Adyen Customer Area the defense time frame is 18 days.
- As of 14 April 2018, Visa will block chargebacks with a fraudulent reason code (VCR reason code 10.4) for card-absent (e-commerce) transactions if the issuing bank approved the transaction with a Card Verification Value 2 (CVV2) mismatch. Visa encourages merchants to use CVV2 as part of their layered approach to fraud prevention.
- Visa will allow a maximum of 35 fraudulent chargebacks on the same account number, within a timeframe of 120 days for Card Not Present (e-commerce) transactions.
- Reason code 75 - Cardholder does not recognize is retired. Visa requires issuers to use the existing data in the Visa portal to assist the cardholder in recognizing the transaction. Other options are to exercise a Request for Information (RFI).
What are the (technical) changes applicable to Adyen merchants?
- Merchants using Adyen Dispute Notifications need to be aware of two new event codes: PREARBITRATION_WON or PREARBITRATION_LOST. These event codes will be added to the list of dispute notifications (field eventCode of the notification message will be populated with PREARBITRATION_WON or PREARBITRATION_LOST)
- For Dispute event codes, ‘Notification of Chargeback’ and ‘Chargeback’, new VCR reason codes will be received as per April 14 2018 in field ‘reason’
- Merchants using the Adyen Dispute API are informed that new defense reason codes are applicable for VCR disputes. Field ‘DefenseReason’ is changed
- Dispute Reports will contain new VCR reason codes (positions 12 and 16 of the report) and journals (position 10). Please review our Dispute Report page for more information
Customer Area changes to the Disputes section:
- Dispute journals will be different for Allocation chargebacks.
- New dispute reason codes and respective defense reason codes will be visible in the Customer Area > Risk > Disputes.
Which indicator on the dispute can be used to know that it falls under VCR?
All new VCR reason codes have the following format: [category].[code]. The dot separating the category and the code indicates that the dispute follows the VCR flow. Disputes following the old (current) flow only have a two-digit reason code. Please review the Adyen VCR manual for an overview of the reason codes.
Are all incoming VCR chargebacks defendable?
Yes, for both Allocation and Collaboration chargebacks, the merchant is able to defend, either via the Adyen Customer Area or via the Dispute API.
What is the flow after a chargeback has been defended?
Merchants are informed that for defended Allocation disputes, no provisional credit is provided after uploading defense material. Adyen will create a Pre-Arbitration on the merchant’s behalf and will forward the documents to the bank (this is different from the current process, where the merchant is always credited the dispute amount after uploading defense material).
If the issuing bank accepts the Pre-Arbitration, the disputed amount is credited to the merchant and the following journals are booked: PreArbitrationWon and ChargebackReversed. If the issuing bank declines the Pre-Arbitration, the journal 'PreArbitrationLost' is booked and the dispute remains with status 'Chargeback'. Merchants using Adyen's Dispute notifications system, will receive a notification for event codes PREARBITRATION_WON and PREARBITRATION_LOST.
For Collaboration disputes, the dispute amount will be credited after uploading defense material (the defense flow remains the same as today).
Does VCR support the Request for Information (RFI)?
Yes, there will be no changes for issuers, acquirers and merchants regarding the RFI process.
Is there any change to Notifications of Fraud (TC40)?
VCR is not introducing any changes changes to Notifications of Fraud (TC40).
Where can I find more information about VCR dispute conditions and defense requirements?
Please review the Adyen VCR manual.
How do I get updated about a Notification Of Fraud (NOF)?
We update you about Notifications of Fraud (NOFs) in the following ways: We send out a server-t...
We update you about Notifications of Fraud (NOFs) in the following ways:
- We send out a server-to-server notification, which your system can use to update directly.
- In the Customer Area, NOFs are listed in Risk > Chargeback.
What is the 3D Secure liability shift, and when does it occur?
This is when the liability for fraudulent chargebacks (stolen or counterfeit cards) shifts fro...
- American Express
- Cartes Bancaires
How to check whether a liability shift occurred
|There was a liability shift to the card issuer|
|There was no liability shift|
|Liability shift was not available|
How do I disable 3D Secure?
Disabling 3D Secure is not recommended, because you will be liable for any financial losses from ...
Disabling 3D Secure is not recommended, because you will be liable for any financial losses from unverified transactions. When 3D Secure is used, the issuer will bear the financial risk in case of a dispute.
We also offer Dynamic 3D Secure. This allows you to use 3D Secure for specific segments of transactions, such as those that exceed the pre-defined value or risk threshold of your choosing. Find more information in our Dynamic 3D Secure documentation.
To disable 3D Secure, or to activate Dynamic 3D Secure, contact Support.
How do I block or trust a shopper?
If you're using RevenueProtect, each transaction will be assigned a fraud score. If this is 100 o...
You can change how the fraud score for a specific shopper is calculated by adding them to a Block list or Trust list. Adding a shopper to a Block list increases their fraud score. Adding them to a Trust list decreases their fraud score.
To add a shopper to a Block or Trust list:
- Go to Customer Area > Transactions > Payments, and select a payment from the shopper by clicking the [PSP reference].
- Expand the Fraud Control section, and select which attributes you want to block or trust.
- Select Block or Trust, and click Apply.
Note: You can also add shoppers to a Block or Trust list using API requests. For more information, refer to Referrals API.
If you have not done so already, you also need to apply a risk check score. This will determine how much the fraud score increases or decreases. Take care when doing this. If done incorrectly you may cause all payments to be refused.
To configure the risk check scores:
- Go to Customer Area > Risk > Risk profiles.
- Under Referral, set a risk check score for the attributes you configured earlier:
- To Block a shopper, add a score with a positive value on the right. This determines how much the fraud score will increase for shoppers on the Block list. The transaction will be blocked when the shopper’s fraud score is higher than 100.
- To Trust a shopper, add a score with a negative value on the left. This determines how much the fraud score will decrease for shoppers on the Trust list.
For more information on the referrals, see Referral Rules.
How do I block and unblock cards involved in fraudulent chargebacks?
Cards used for fraudulent chargebacks on the Adyen are automatically blocked for future purchases...
Cards used for fraudulent chargebacks on the Adyen are automatically blocked for future purchases on the payments platform. Therefore, you do not need to take any action to block the card.
However, if you wish to accept payments with a blocked card, you can opt to put the card on your own accepted list.
There are two ways to add a card to your accepted list:
- Fraud Settings: In the Customer Area, switch to your merchant account and then go to Risk > Risk profiles > Card/Bank Account number referral > config. Your user account must be configured with the necessary roles to make fraud setting changes.
- Payment page: In the Customer Area, switch to your merchant account and then go to Transactions > Payments > PSP number of the blocked transaction > Fraud Control.
In both cases, the shopper must perform the transaction again to be accepted.