Visa has recently closed the Verifi buyout, strengthening its role of facilitating transparency and trust across the buying experience. The acquisition of Verifi by Visa will surely provide Verifi with significant international scale but there are several benefits for Visa as well.
The standard process by which transaction disputes are currently resolved provides information regarding transaction via several offline platforms and channels. Verifi serves over 25,000 accounts around the glove and its technology saves resources and time by connecting all parties involved in the dispute management process in virtually real-time. Services include a merchant chargeback alert service to notify merchants of incoming disputes, offering faster resolution to the merchant.
With the Verifi buyout, Visa will integrate the enhanced chargeback tools through the company’s risk management services, including the ones delivered by CyberSource and CardinalCommerce. The dispute resolution and chargeback capabilities of Visa will be extended to a broad range of partners and payment brands across the ecosystem.
Consumer payment needs are becoming more and more cross-channel and chargeback handling, fraud management, fraud prevention, as well as payment processing are becoming more complex. Since the Carinal Commerce business of Visa is already a global leader in 3D Secure, the integration of Verifi’s technology will allow them to offer a unique value proposition in the market.
Even in the Strong Customer Authentication market, there will be wide variety of transaction types that require the implementation of risk management tools. For instance, ‘one-leg-out transactions’ are out of the scope of SCA when a US cardholder makes a purchase on a European website. In this case, the application of risk management products will be required. Apart from this, there are also transactions for which Strong Customer Authentication rules can’t be applied. And even though SCA is a great regulatory initiative for handling issues with e-commerce payments, it doesn’t negate the need for a more sophisticated fraud prevention.
Through the acquisition of Verifi, Visa hopes to combine its suite of fraud and risk management solutions with Verifi’s dispute resolution tools so that it can give both sellers and buyers data-driven, intelligent tools that build trust, foster collaboration, and improve the overall customer experience.
Verifi has been a leader in the payments industry since 2005. It provides end-to-end, innovative payment protection solutions that eliminate chargebacks, prevent disputes, as well as recover profits lost to chargebacks. The company creates adaptive, strategic technologies for payment issuers, acquirers, facilitators, and merchants, building sustaining partnerships to promote brand growth, increase profits, and deliver value. The technology of Verifi facilitates communication between merchants and banks in the chargeback dispute management process. With the buyout, Visa intends to add these capabilities to its own anti-fraud tool suite.
Verifi also seems excited about the buyout. The CEO of the company Matthew Katz also weighed in in Visa’s corporate blog post about the buyout and said that after years of providing exceptional services in order to make payments safer, Verifi is happy to find a partnership with Visa – one of the leading credit card issuers in the world. The CEO also shared plans to scale Verifi’s technology in the near future.
About The Author
Angela De Steffano
Staff writer at High Risk Merchant Account LLC
Angela is a merchant account specialist and heads the marketing team at HRMA-LLC.