Money in the e-commerce processes must be kept safely and contribute to the growth of the business. However, chargebacks are related to both financial and reputational drawbacks. How can companies avoid them? In recent years, such options as a VMPI or Visa Merchant Purchase Inquiry is used for this purpose. It is provided through payment gateway service providers like the maxpay.com account and is quite popular in Europe.
Visa Merchant Purchase Inquiry: purpose
The main intention of Visa for the creation of the VMPI was to prevent chargebacks as much as possible. This task became a reality through the transparent communication channels made between the banks and businesses.
Before its introduction, Visa identified millions of chargebacks every year. The total amount was increasing and also some of the cases were related to internet fraud. Money was stolen through the false chargebacks and the task to combat this problem appeared to be highly demanding.
Therefore, the VMPI introduction in 2017 was aimed to connect merchants and banks and decrease false disputes. Previously it was expensive to resolve all these issues and also it has taken a lot of time. Nowadays, with a Maxpay account, for example, a merchant can get quick notifications about chargebacks and react quickly solving the problem without overspending.
Visa Merchant Purchase Inquiry: who can use it
At the present moment, VMPI is recommended for all merchants who process credit cards online. The program appeared to be beneficial for the next areas of business:
Thanks to the usage of the VMPI, the total amount of chargebacks is decreasing. The money is safe as well as an eWallet of the merchant.
Advantages and disadvantages of using VMPI
The VMPI became quite popular for the following reasons:
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It provides visibility to banks about transactions and customers.
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The program prevents Visa disputes.
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The retrieval requests are eliminated.
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The risk of chargebacks is minimized.
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Unknown transactions are reduced.
There are also a few disadvantages related to the VMPI, but they are not crucial:
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Banks get the transaction data of the merchant.
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You need time to integrate this system into your daily routine.
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A merchant should look for a reliable vendor with affordable pricing.
In a nutshell, if you use an eWallet in USD, EUR, or other currencies and operate online as a merchant, use this powerful tool for the protection of chargebacks. It’ll contribute to the development of the business and will bring safety into your financial environment.
