AI Tool Verifies Visa Program Compliance

Visa's Compelling Evidence 3.0 (CE3.0) initiative, first introduced in April 2023, is designed to combat "friendly fraud," where a cardholder disputes a legitimate charge. The program specifically targets disputes with Visa reason code 10.4, which covers card-not-present fraud claims. This has become a critical tool for merchants as card-not-present disputes have grown by over 29% since 2019. Under CE3.0, merchants can prove a transaction's legitimacy by providing evidence of two undisputed transactions from the same payment method that are between 120 and 365 days older than the disputed one. These historical transactions must share at least two data points with the disputed transaction, one of which must be either the IP address or the device ID. This data-centric approach helps automate the validation process and shifts liability back to the issuer if the criteria are met. The new AI-powered tool from Verisave, Optimized Payments, and Fee Navigator aims to streamline this evidence-gathering process. By automating the collection and verification of required data points like device IDs and IP addresses, the tool helps merchants more efficiently meet CE3.0 requirements. This is particularly crucial as merchants often have only seconds to provide this data at the pre-dispute stage to prevent a chargeback from being filed. This automation is part of a broader trend of integrating AI into payment dispute management to increase efficiency and accuracy. AI-driven systems can analyze vast amounts of transaction data to identify patterns, prioritize high-risk disputes, and reduce the manual workload for fraud prevention teams. For financial institutions, this translates to faster resolution times, lower operational costs, and improved customer satisfaction. The focus on digital identity verification is also intensifying across the financial sector to combat rising online fraud. Innovations now center on biometric authentication, behavioral analytics, and leveraging open finance data to create a more holistic view of a user's identity. This allows for continuous, real-time risk assessment rather than one-time checks, strengthening security without adding friction for legitimate customers. For payment networks and issuers, the evolution of real-time payment infrastructures like FedNow and the RTP network introduces new fraud risks that demand more sophisticated, AI-led controls. Simultaneously, institutional adoption of stablecoins and blockchain for settlement is beginning to reshape the underlying architecture of cross-border payments. These programmable, 24/7 payment rails offer near-instant settlement, creating new efficiencies for treasury operations and B2B transactions. Venture capital investment in fintech reflects these trends, with significant funding flowing into B2B payments infrastructure, AI-driven financial automation, and embedded finance. VCs are prioritizing startups with strong unit economics and clear profitability paths, focusing on companies that provide the foundational technology for the next wave of financial services. Founder stories from this space often highlight the journey of navigating complex regulatory environments and building scalable, resilient platforms. For product leaders, influencing strategy in this environment requires a deep understanding of both the technological shifts and the evolving needs of banks, fintechs, and merchants. Navigating the complex stakeholder landscape of a large enterprise involves building a compelling product vision grounded in market realities and demonstrating how new initiatives like AI-powered compliance tools can drive revenue, reduce risk, and create a competitive advantage.