There are some additional programs and features for an online account of a merchant that are quite useful. One of them is known as VMPI or the Visa Merchant Purchase Inquiry program. It exists in Europe since 2017 and gives Visa merchants wider possibilities to work with disputes of the customers preventing chargebacks. Let’s look at the VMPI closer.
The main features of the VMPI
How does the VMPI work and prevent chargebacks? Let’s imagine a situation probable for an online account of a merchant when the client disputes a transaction. Then he’ll need to contact the bank or the businessman:
- When the bank is involved the transaction is going to be reversed. Merchants do not possess any control over the situation. Therefore, the chargeback happens. Money is taken from the eWallet or online account of a company and here the story ends.
- On the other hand, the owner of the business can solve the problem and issue a refund. It is possible if the client does not reach the bank in the first place. Even if there will be no purchase, there will be no chargeback either.
This fact matters because the chargeback ratio is really important for a merchants’ account. It’s a reputational indicator. Also, it can be linked to fraud. Money can be stolen using chargebacks.
So, here the VMPI is helpful because it sends notifications in the case of a probable chargeback. There will be a request for details of the purchase from the merchant. If the information demonstrates the legit transactions, then the bank will deny the request of a client.
The process of the VMPI
In a nutshell, the VMPI connects the transactions from the eWallet of the merchant and the issuing banks. The detailed steps of this process are the following:
- The holder of the card contacts the bank to dispute a transaction.
- Visa checks if the merchant participates in the VMPI. If yes, the program sends a notification about such requests directly to the merchant.
- The owner of the business gives all the needed information about the transaction and responds to the bank.
- The bank makes the final decision and informs all the parties concerned about the issue.
Open a merchant account in Maxpay to enjoy the VMPI service among all other services.