Compelling Evidence 3.0, Visa

Feb 14, 2024 | Payments, Signature News

Empowering Merchants to Combat Friendly Fraud

For online merchants, the worst kind of fraud is the friendly kind. Malicious fraudsters utilizing scaled techniques are comparably easier to catch when you have a robust fraud solution. However, friendly fraud, executed by individuals with lies, poses a significant challenge. Merchants often struggle to provide compelling evidence to refute chargeback claims based on pretenses. Fortunately, Visa has introduced the Compelling Evidence 3.0 (CE 3.0) rules, effective April 2023, which offer merchants a data-driven approach to control losses from the chargeback process.


Signature Payments: Your Partner in Navigating Visa's CE 3.0
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Signature Payments: Your Partner in Navigating Visa’s CE 3.0

At Signature Payments, we understand the challenges faced by merchants in combating friendly fraud and adapting to regulatory changes. As a trusted payment solutions provider, we are committed to helping merchants navigate the complexities of the Visa CE 3.0 initiative. Our experienced team is well-equipped to guide you through implementing the necessary workflows and technologies to ensure compliance and maximize your win rate in chargeback disputes.

What Is Visa Compelling Evidence 3.0?

Visa’s CE 3.0 initiative represents their latest effort to mitigate the impact of friendly fraud and chargebacks on merchants’ bottom lines. It is an update from CE 2.0, refining the rules and regulations for disputing and resolving chargebacks. These requirements establish a framework that defines fraud, determines when a chargeback should be awarded, and assigns liability for any damages. Furthermore, they outline what constitutes evidence, how and when it should be presented, and how its authenticity is verified.

What Is Visa Compelling Evidence 3.0?<br />

Changes and Implications of CE 3.0 Adoption

The new CE 3.0 rules consider modern merchant practices for transaction monitoring and address the evolving nature of chargebacks. Some significant implementations in CE 3.0 aim to increase the merchant win rate for disputes, focusing on the type of data that can be submitted as evidence, setting a timeframe for customer-initiated disputes, and introducing mechanisms to prevent chargebacks with compliant evidence.

Changes in Data Requirements

CE 3.0 introduces updated language to accommodate verticals that provide digital goods or services without a physical delivery address. Previously, merchants seeking to avoid chargebacks were required to provide the IP address, email address, physical address, and phone number as evidence that the disputing cardholder had previously completed a non-disputed transaction. CE 3.0 refines this requirement to include at least two of the following data points:

  • Customer account or login ID
  • Delivery address
  • Device fingerprint
  • IP address

Notably, at least one of the two data points submitted as evidence must be the IP address or device fingerprint. Furthermore, while previously one non-disputed transaction was sufficient to deny chargeback, CE 3.0 now requires a minimum of two non-disputed transactions, with the third transaction, when disputed, leveraging the previous two as compelling evidence.

Addition of Resolved Dispute Timeframe

CE 3.0 introduces a 120-day statute of limitations for chargebacks to address loopholes exploited by first-party chargeback fraudsters. Charges that have gone undisputed for 120 days or more can no longer have a fraud claim opened against them and will count as compelling evidence. Additionally, the number of non-disputed customer transactions required under CE 3.0 increases from one to two, with the disputed charge constituting the third.

How Signature Payments Can Help Merchants with CE 3.0

As a leading payment solutions provider, Signature Payments is uniquely positioned to assist merchants in adapting to the Visa CE 3.0 rules. Our team of experts is well-versed in the intricacies of CE 3.0 and can guide you through the necessary steps to ensure compliance and minimize the impact of friendly fraud on your business. Here’s how Signature Payments can help:

  1. Comprehensive Solutions: We offer a range of complete solutions tailored to meet the specific needs of your business. Our payment processing systems are designed to incorporate the required data points and provide you with the necessary tools to gather compelling evidence.
  2. Technology Integration: Our team will assist you in seamlessly integrating the technology required for CE 3.0 compliance. We understand the importance of robust fraud prevention measures and will work with you to implement advanced technologies such as device fingerprinting, IP reputation scoring, and real-time transaction monitoring.
  3. Education and Training: Navigating the intricacies of CE 3.0 can be challenging, but our experts are here to support you every step of the way. We provide comprehensive education and training to ensure that you and your team understand the new requirements and can effectively implement the necessary processes.
  4. Workflow Optimization: Adapting to CE 3.0 may require adjustments to your existing workflows and internal policies. Our experienced consultants can help you optimize your processes to align with the new rules, minimizing the risk of chargebacks and maximizing your dispute win rate.
  5. Ongoing Support: As regulations evolve and new challenges emerge, Signature Payments will continue to provide ongoing support to ensure that your business remains compliant and well-protected against friendly fraud. We stay up-to-date with industry developments and will proactively inform you of any changes that may impact your operations.

How Signature Payments Can Help Merchants with CE 3.0

The Impact on Merchants

The introduction of Visa CE 3.0 has both advantages and disadvantages for merchants. Let’s explore these implications:

Advantages of CE 3.0

  1. Reduced Chargebacks: CE 3.0 aims to catch fraudsters who exploit the unlimited window for filing chargebacks on historical transactions. By implementing the new framework, merchants can significantly reduce the number of fraudulent chargebacks they face.
  2. Broader Scope: CE 3.0 considers verticals focusing on digital deliveries without a physical address requirement. This inclusiveness benefits companies in sectors such as ridesharing, dating apps, and other digital marketplaces, providing them with more relevant options when submitting evidence.

Disadvantages of CE 3.0

  1. Increased Complexity: The metrics for assessing the integrity of compelling evidence have become more complex with CE 3.0. The changes in data requirements and the addition of a time window introduce new parameters and increase the workload for merchants.
  2. Resource Investment: Adapting to CE 3.0 may require additional resources in terms of technology integration and human capital. Merchants must allocate sufficient resources to ensure compliance and effectively manage chargeback disputes.

Despite these challenges, partnering with a trusted payment solutions provider like Signature Payments can alleviate the burden and streamline complying with CE 3.0.


Visa’s Compelling Evidence 3.0 rules provide a data-driven approach for merchants to combat friendly fraud and minimize losses from chargebacks. With the expertise and support of Signature Payments, merchants can navigate these regulatory changes successfully. By implementing comprehensive solutions, integrating the necessary technologies, optimizing workflows, and receiving ongoing support, merchants can mitigate the impact of friendly fraud and maintain a competitive edge in the evolving payment landscape.

Don’t let friendly fraud erode your revenue. Instead, protect your business from fraudulent chargebacks and overcome the challenges of CE 3.0 with the unbeatable solutions offered by Signature Payments. Our tailored solutions are designed to protect your profits and secure your bottom line. So please immediately; contact us today to learn more.