What is the fee for Order Insight? How much can you expect to pay to prevent chargebacks with this solution?
Want a high-level overview of how Order Insight works? Check our detailed guide first.
What is the price of Order Insight?
Verifi — the vendor for Order Insight — sets suggested pricing, and AltoPay follows Verifi’s pricing guidelines. That means most merchants will pay less than $0.30 (USD) per Order Insight inquiry.
How can I make Order Insight more cost effective?
Since Verifi sets the pricing for Order Insight, partners like AltoPay® don’t usually have the ability to make significant adjustments to fees. However, there are a couple things you can do to reduce costs.
- Look for ways to update your policies and processes to be more customer friendly. If a customer is satisfied with the interaction, there is less risk of a dispute — which means you won’t have to pay an Order Insight fee. Things like longer refund time limits, free return shipping, and reminders for upcoming charges can really help. Check our complete guide for more tips to help reduce chargeback risk.
- Check for customer characteristics that are high risk. For example, are there certain countries, products, or marketing campaigns that have higher-than-normal chargeback rates? If so, maybe you want to make some changes to your business model. Fewer disputes mean fewer fees.
- Periodically check with your solution provider for opportunities to cut costs. For example, if your volume is higher than expected, could your per-case fee be lowered? Or if Verifi has reduced the buy rate, could those savings be passed along to you?
- Work with a reputable solution provider — like AltoPay. Your solution provider should help you maintain a strategy that is optimized for return on investment (ROI). If you don’t have someone to help detect risk and make cost-saving suggestions, it might be time to work with someone else.
NOTE
The biggest cost saving strategy happens before you sign a contract.
Some solution providers claim to provide Order Insight “basically for free”. They don’t charge a fee for each inquiry received. Instead, they charge you a percentage of every “successful” case. They call it a no-brainer — you only pay if the solution works.
But, it is impossible to know if an Order Insight response successfully resolves a dispute. There is no way for issuers to communicate the outcome with you or explain how they chose to proceed. Sure, you might not see a corresponding chargeback. But did Order Insight actually influence the issuer’s decision?
Depending on the provider’s “performance pricing” rate and your average ticket amount, this “no-brainer” strategy could end up costing a lot more than a per-case fee — even if the solution isn’t actually working the way the provider claims it is.
What’s included with the fee?
WHAT YOU GET
Fewer chargebacks
Usually, the most appealing benefit of a chargeback prevention solution is the ability to stop chargebacks from happening — which is a pretty valuable perk!
If your operation receives too many chargebacks, your bank could label you a high-risk business. And once you are perceived as risky, your business’s future is in jeopardy.
Businesses with high chargeback activity are enrolled in a chargeback monitoring program or VAMP — which comes with additional fees and administrative hassles. Stay in a program too long and you could lose your merchant account — and the ability to process payments.
If you are currently enrolled in a program or might be, now is the perfect time to amp up your chargeback prevention efforts. And Order Insight can help.
WHAT YOU GET
Advance warning
If the bank issues a chargeback, it could take 2-5 weeks for the notice to reach your desk. A lot of additional chargebacks can happen in that time period.
But Order Insight functions in real time. This means you’ll know about any issues instantaneously. So you can identify the underlying reason for disputes and solve issues at their source.
For example, let’s say you get a new merchant account. You forgot to check how the billing descriptor is formatted, so your customers get charges with your legal business name instead of your DBA name. Your legal name is confusing and not easily recognizable for your business. So customers start disputing their purchases.
If you use Order Insight, you’ll know about the issue within seconds of the first customer dispute. You can change your billing descriptor and immediately clear up the confusion. But if you don’t have Order Insight, it could be a month or more before you realize changes need to be made.
By resolving one dispute, you could potentially prevent hundreds of other disputes from happening.
Reporting can help you determine your current ROI and if there is room for improvements.
WHAT YOU GET
Valuable insights
If you use the right service provider for Order Insight — such as AltoPay — your solution will include detailed reporting and analytics. With that reporting, you can make educated decisions to improve your strategy and ROI. Here are some examples of the insights you can gain.
- How often does an Order Insight inquiry advance to a chargeback?
- Are some issuers or BINs more active than others? What is the success rate for each BIN?
- Are you sending the correct information — and enough of it?
- Are there any products or services that are disputed more often than others?
- Where are your disputes coming from? Which countries are the highest risk?
- Does one price point generate more disputes than any other?
- What are the most common reasons for disputes?
Reporting can help you determine your current ROI and if there is room for improvements.
WHAT YOU GET
Personalized support
Your solution provider ought to help you optimize your results. A professional can review your risk metrics on a regular basis, give advanced warning for potential issues, and offer suggestions on how to improve outcomes.
Again, this perk is only available if you are working with a reputable solution provider — like AltoPay.
WHAT YOU GET
Revenue retention
Other solutions resolve disputes by refunding transactions. But Order Insight doesn’t require a refund. So you retain more revenue at a fraction of the cost.
Interested in a custom price quote for your business?
Order Insight pricing could be influenced by different variables. Want to know how much your business could expect to pay?
Let us know you’re interested, and we’ll put together a customized quote for Order Insight fees.
AUTHOR
Jessica Velasco
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
