Visa Compelling Evidence 3.0 Explained

For years, merchants have faced a difficult reality when responding to fraud-related chargebacks.

Even when a customer had made multiple legitimate purchases using the same account, device, payment credentials, and shipping address, merchants often struggled to prove that a disputed transaction was actually authorised by the genuine cardholder.

Visa recognised this challenge and introduced Compelling Evidence 3.0 (CE 3.0) as part of its ongoing efforts to reduce first-party misuse — commonly known as friendly fraud.

Rather than relying on a single transaction, CE 3.0 allows merchants to demonstrate a pattern of legitimate customer behaviour using historical transaction data. By showing that the same customer has previously completed successful purchases without dispute, merchants can provide stronger evidence in eligible fraud disputes.

CE 3.0 does not eliminate fraud, nor does it guarantee that every dispute will be resolved in the merchant's favour. Instead, it strengthens the quality of evidence available in qualifying cases and encourages a more data-driven approach to dispute resolution.

For merchants with repeat customers, subscription businesses, customer accounts, or loyalty programmes, CE 3.0 represents one of the most significant developments in dispute management in recent years.

Traditional chargeback rules focused heavily on the disputed transaction itself.

The question was often simple:
"Can the merchant prove this individual transaction was authorised?"

In many cases, the answer was difficult.

Even when merchants knew the customer had completed dozens of legitimate purchases previously, those earlier transactions often carried limited weight in the dispute process.

Visa recognised that this approach no longer reflected how modern digital commerce works.

Historical customer behaviour can therefore provide valuable context when assessing whether a disputed transaction is likely to be genuine.

CE 3.0 was introduced to recognise this reality.

Compelling evidence is documentation or transaction data that supports a merchant's claim that a disputed transaction was legitimate.

Compelling Evidence 3.0 expands this concept by allowing merchants to demonstrate a consistent history of legitimate customer activity.

Instead of asking:
"Can you prove this purchase?"

Visa now also considers:
"Can you demonstrate that this customer has successfully completed similar purchases before?"

Merchant Insight

One transaction can sometimes be questioned. Ten consistent transactions made by the same customer, using the same account and payment credentials, tell a much stronger story.

That is the principle behind CE 3.0.

Visa Compelling Evidence 3.0 is a framework that allows merchants to use historical transaction data to strengthen eligible fraud-related chargeback responses.

Rather than relying solely on documentation related to the disputed transaction, merchants may be able to reference previous legitimate purchases that demonstrate an established relationship with the customer.

The objective is to reduce friendly fraud while maintaining strong consumer protection against genuine criminal fraud.

Although each case is evaluated individually, the overall concept is straightforward.

The customer makes multiple legitimate purchases over time. These transactions are successfully authorised and are not disputed.

The customer later disputes a new transaction as fraud.

The merchant identifies historical transactions demonstrating a consistent purchasing relationship.

This evidence forms part of the merchant's representment package, where applicable and in accordance with Visa's programme requirements.

Consider two examples.

Then suddenly claims fraud.

These situations are not identical.

CE 3.0 allows historical behaviour to become part of the overall assessment.

CE 3.0 is particularly valuable for merchants with ongoing customer relationships.

Streaming services. Membership platforms. Software subscriptions. Fitness programmes. Educational platforms.

Repeat customers. Customer accounts. Saved payment methods. Loyalty programmes.

Recurring invoices. Multiple licences. Business accounts.

Customer accounts. Virtual purchases. Repeat spending.

Downloads. Templates. Courses. Media.

Returning buyers. Verified customer accounts.

Merchant Insight

Merchants with primarily one-time anonymous purchases may see fewer opportunities to leverage CE 3.0 than businesses built around repeat customer relationships.

Depending on the merchant's business model and available records, relevant data may include:

The objective is to demonstrate continuity rather than relying on a single data point.

This is one of the most common misunderstandings.

Those functions belong to fraud prevention systems.

Instead, CE 3.0 strengthens the merchant's position after an eligible dispute has occurred.

These products are complementary.

Merchants often achieve the strongest results by combining both solutions.

These operate before the chargeback.

CE 3.0 operates after a qualifying fraud dispute has entered the representment process.

Think of alerts as prevention. Think of CE 3.0 as evidence enhancement.

Historical customer behaviour provides additional context.

Eligible merchants may recover revenue that would otherwise be lost.

Repeat customers become easier to evaluate.

Merchants benefit from maintaining accurate customer records.

CE 3.0 rewards merchants who understand and document customer behaviour over time.

Merchant Insight

One of the hidden advantages of CE 3.0 is that it encourages merchants to improve data quality.

Even outside dispute management, better customer data often improves fraud detection, customer service, reporting, and operational decision-making.

"CE 3.0 guarantees merchants will win."
No. Each dispute is assessed individually under Visa's applicable rules.

"CE 3.0 replaces representment."
No. CE 3.0 strengthens representment. It does not replace it.

"Every merchant can use CE 3.0 equally."
Not necessarily. Businesses with repeat customers generally benefit more than merchants processing anonymous one-time purchases.

"Historical purchases alone are enough."
No. Historical transactions are only one part of the overall evidence package.

The payments industry is increasingly moving toward evidence-based dispute resolution.

Rather than focusing on isolated transactions, future dispute programmes are likely to consider broader customer behaviour, stronger digital identity verification, and richer transaction data.

Artificial intelligence, behavioural analytics, network tokenisation, and enhanced merchant data are expected to further strengthen dispute resolution in the coming years.

CE 3.0 represents one step in this broader evolution.

Merchants that invest in high-quality customer data today will be better prepared for tomorrow's payment ecosystem.

Does CE 3.0 stop chargebacks?
No. It strengthens eligible fraud dispute responses after a chargeback has occurred.

Is CE 3.0 only for subscription businesses?
No. Any merchant with repeat customer relationships may benefit, although subscription businesses often have particularly strong use cases.

Does CE 3.0 replace fraud prevention?
No. Fraud prevention attempts to stop unauthorised transactions before they occur. CE 3.0 strengthens evidence after eligible fraud disputes arise.

Should merchants still use Order Insight?
Yes. Order Insight helps prevent disputes. CE 3.0 strengthens responses after disputes occur. They address different stages of the dispute lifecycle.

Why is CE 3.0 considered important?
It reflects a shift toward evaluating customer behaviour over time rather than relying solely on evidence from a single transaction.

• CE 3.0 strengthens eligible fraud-related representment using historical customer transaction data.
• It was introduced to help address the growing challenge of friendly fraud.
• It does not replace fraud prevention or dispute prevention tools.
• Businesses with repeat customers often benefit the most.
• Strong customer data management is essential for maximising its value.
• CE 3.0 is most effective when used alongside solutions such as Order Insight, Ethoca Alerts, RDR, and Verifi CDRN.

• Order Insight
• Customer Clarity
• Chargeback Recovery Services
• Ethoca Alerts
• Rapid Dispute Resolution (RDR)
• Verifi CDRN

• The Complete Guide to Chargeback Management for E-commerce
• Winning the Chargeback Fight: A Practical Guide to Representment
• Verifi Order Insight: Reducing Chargebacks Through Better Transaction Visibility
• Verifi CDRN Explained: Preventing Chargebacks Before They Happen
• How to Prevent Friendly Fraud: 15 Proven Strategies for Merchants
• Understanding Visa's New VAMP Thresholds and What They Mean for Merchants