If you're still fighting friendly fraud with screenshots and shipping confirmations, it's time to rethink your strategy. Visa's Compelling Evidence 3.0 changes the game, and this time, merchants finally get some leverage.
Forget the old rules. In 2025, Visa introduced a major update to its chargeback framework: Visa Compelling Evidence 3.0. Unlike previous versions, this one gives merchants the power to use deeper data (think device IDs, IPs, account login histories, and usage patterns) to prove a cardholder actually made the transaction. And it's already shifting outcomes in friendly fraud cases.
Let's break down exactly what changed, how it works, and how you can use it to stop chargebacks before they spiral.
What is Visa Compelling Evidence 3.0?
Visa Compelling Evidence 3.0 (CE 3.0) is an updated rule framework designed to help merchants challenge Reason Code 10.4: Fraud, Card-Absent Environment chargebacks. This is Visa's code for friendly fraud—when a customer disputes a legitimate transaction and claims they didn't authorize it.
The CE 3.0 update gives merchants a new way to meet Visa's fraud liability shift criteria by providing specific kinds of evidence that show a clear pattern of authorized use by the cardholder.
What Counts as Compelling Evidence Under CE 3.0?
Visa now accepts a combination of the following data types as compelling evidence:
- Device ID or device fingerprint: Unique identifier showing the same device was used across multiple transactions.
- IP address: Matching IP used in current and previous undisputed transactions.
- User account login history: Shows the customer accessed their account during or before the disputed transaction.
- Transaction history: At least two previous undisputed transactions from the same account or device within 120 days of the disputed charge.
The goal is to prove that the cardholder has a history of legitimate behavior using the same credentials, device, or login pattern. If you meet these criteria, you can shift liability back to the issuer before a chargeback even posts.
Why Visa Compelling Evidence 3.0 Matters in 2025
Friendly fraud has surged in recent years, especially for digital goods and card-not-present transactions. Merchants have been stuck with limited ways to fight back. Even clear delivery receipts or customer communications often weren't enough.
CE 3.0 finally acknowledges behavioral and technical data as valid evidence. And that changes how merchants can build their cases.
Here's why it matters:
- It can prevent the chargeback from ever posting if accepted during the alert phase.
- It sets stricter requirements for issuers to accept cardholder claims without valid evidence.
- It forces cardholders to think twice before filing a false fraud dispute, especially if login records or usage patterns can be traced.
How to Use CE 3.0 in Practice
To qualify for the CE 3.0 framework, you must meet all of the following:
- At least two previous undisputed transactions from the same device, IP, or login within the past 120 days.
- Consistent identity signals: Device ID, IP address, and login credentials must match between the current and past transactions.
- Use Visa's defined data fields: Evidence must be submitted using Visa's required format through your processor or dispute platform.
Merchants should work with their payment provider or chargeback platform to ensure their systems are logging the right metadata and that they're ready to submit it quickly.
Common Mistakes to Avoid
Even with the new rules, misuse or misunderstanding of CE 3.0 can lead to lost disputes. Here are the top errors to avoid:
- Missing previous transaction links: If you can't tie the disputed transaction to earlier legitimate ones, your evidence won't qualify.
- Mismatched metadata: Ensure device IDs or IPs are recorded exactly the same way across transactions.
- Incomplete data formatting: Submissions must follow Visa's technical requirements. Failing to comply can disqualify your evidence.
Conclusion
Visa Compelling Evidence 3.0 is a shift in how fraud liability is determined. If you're not collecting the right data now, you're leaving chargeback wins on the table.
It's a sign of where things are heading: toward more dynamic, behavior-based dispute defense. For merchants ready to lean into data-driven evidence, CE 3.0 is a powerful new tool.
FAQs About Visa Compelling Evidence 3.0
What is the main purpose of Visa Compelling Evidence 3.0?
The main purpose is to help merchants dispute fraud claims in card-not-present environments using technical data like device ID, IP address, and login activity. This improves defense against friendly fraud and shifts liability back to the issuer if the criteria are met.
Does CE 3.0 apply to all chargeback reason codes?
No, CE 3.0 is specific to Visa reason code 10.4, which relates to fraud claims on digital or card-not-present transactions. Other reason codes still follow standard dispute procedures.
How recent do the previous transactions need to be?
Visa requires that the two previous undisputed transactions occurred within 120 days of the disputed charge. These transactions must have consistent identifiers like device ID or login credentials.
Is this change live for all merchants globally?
Yes, CE 3.0 became effective globally in 2023, but adoption and technical support depend on your processor and platform. Most major gateways and dispute providers now support it.
What if the customer used a different device or IP?
If there's no overlap in device or network information, the evidence may not qualify under CE 3.0. However, some dispute platforms allow you to use alternate behavioral data if supported.
Stay One Step Ahead of Chargebacks with Chargeblast
Want to stop fraud-based chargebacks before they hit your bottom line?
Chargeblast gives merchants the infrastructure to log, track, and submit CE 3.0-ready data in real time. We monitor device fingerprints, login sessions, and dispute alerts—so you're always ready when a false fraud claim shows up.
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