In 2015, Visa saw over 2.6 million chargebacks initiated because cardholders did not recognize the transactions, an increase of over 13% from the prior year. In addition, 20% of all chargebacks were tied to purchases of digital goods, which includes electronic downloads of movies, music, and phone application purchases. As the number of transactions related to digital goods continues to increase, so does the potential for an increased number of disputes. And this can be expensive, as the cost of working a dispute can be far greater than the purchase itself. Merchants and issuers need a more proactive way to prevent a dispute from occurring if a cardholder does not recognize the transaction. While digital goods merchants are certainly important due to the volume, use cases exist for ALL merchants looking to reduce dispute volume, including brick and mortar merchants, travel and entertainment and online merchants.
Order Insight connects issuers and merchants with the combined goal of reducing disputes that aren't really disputes.