Fraud caught everyone’s attention last year and this trend is set to continue at a grand scale in 2025, with the likes of PXP Financial moving to upgrade their fraud prevention capabilities.
The UK-based multinational payments firm has integrated Visa’s Compelling Evidence 3.0 and Order Insight (OI & CE3.0) framework via a partnership with DisputeHelp, a California-based company specialising in post-authorization threats.
PXP and DisputeHelp have launched new initiatives through the partnership, focusing on equipping merchant partners with fraud prevention tools and the ability to comply with changes to Visa’s dispute monitoring framework.
From 1 April 2025, Visa will phase out its Dispute Monitoring Programme (VDMP) and Fraud Monitoring Programme (VFMP), replacing them with an upgraded Visa Acquirer Monitoring Programme.
This will include updated metrics and enforcement measures designed to improve fraud and dispute monitoring. With Visa, a payments processor for countless merchants across the globe, PXP and DisputeHelp seem to believe there is an opportunity to assist said merchants to step up and comply with this change.
Kasia Gruszka, Senior Scheme Manager at PXP Financial, said: “This is an exciting development that has enabled PXP Financial to integrate OI & CE3.0 into our payment processing platform, providing merchants with an end-to-end solution that includes fraud prevention, transaction tracking, and chargeback management.
“We are proud to have already successfully embedded OI & CE3.0 into our existing ecosystem and to now provide merchants with holistic fraud prevention solutions that go far beyond industry standards.”
On a broader scale, PXP is also looking to enhance its own fraud prevention product suite. The company aims to offer an ‘advanced tool’ to merchants, designed to prevent and reduce first-party fraud-related financial losses.
The tool will be based on OI & CE3.0 and will protect profitability by recovering transaction funds, minimising revenue loss and enhancing financial stability based on evidence and improved dispute management.
Bart Szypkowski, Chief Revenue Officer at DisputeHelp, added: “As industry leaders, DisputeHelp brings its expertise in deploying and supporting OI & CE3.0, and ensuring the solutions meet Visa’s standards and requirements.
“OI & CE3.0 are game-changers in first-party fraud prevention in that they enable merchants to shift liability back to the card issuer if they can provide proof of two prior legitimate transactions with the same payment credentials – providing indisputable evidence of an existing customer-merchant relationship.”
The partnership comes amid a heightened focus on fraud across the industry. In PXP’s home market of the UK, fraud has caught the attention of industry stakeholders, consumers and regulators considerably.
Fraud losses stood in the hundreds of millions in the first half of 2024 alone in the UK, something which the Payment Systems Regulator (PSR) has sought to address via new reimbursement requirements. Various financial institutions have also cautioned about the role social media plays in fraud preparation.