Sift > Case Studies > Real-time Resolution Case Study: Major American Airline

Real-time Resolution Case Study: Major American Airline

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Company Size
1,000+
Region
  • America
Country
  • United States
Product
  • Real-time Resolution (RTR)
  • Visa Merchant Purchase Inquiry (VMPI)
Tech Stack
  • Automated dispute management
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Revenue Growth
Technology Category
  • Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries
  • Aerospace
Applicable Functions
  • Sales & Marketing
Use Cases
  • Fraud Detection
Services
  • System Integration
About The Customer
The customer in this case study is a major American airline. The airline was facing a significant challenge with Visa disputes, which were becoming valid chargebacks and causing financial loss. Over a period of three months, the airline had over 4,700 Visa disputes initiated against them, representing a significant $1.8 million. The airline needed a solution to reduce the number of disputes and prevent them from becoming valid chargebacks.
The Challenge
The major American airline was facing a high volume of Visa disputes, which were becoming valid chargebacks. Over the first three months, the company had over 4,700 Visa disputes initiated against them, representing $1.8 million. This was causing significant financial loss and operational challenges for the airline. The company needed a solution to reduce the number of disputes and prevent them from becoming valid chargebacks.
The Solution
The solution was provided by Chargeback, a company owned by Sift, which is the leading global provider of automated dispute management. They implemented their Real-time Resolution (RTR) system, which enrolls merchants in Visa Merchant Purchase Inquiry (VMPI). This allows for real-time communication of customer, order, and product detail to over 120 million cardholders. With RTR, issuing banks use the additional details to prevent disputes, stemming from both friendly fraud and chargeback fraud, from being filed. This solution was able to significantly reduce the number of disputes and prevent them from becoming valid chargebacks.
Operational Impact
  • Chargeback provided real-time communication of customer, order, and product detail to over 120 million cardholders.
  • The additional information provided by Chargeback allowed card issuers to deflect over 550 disputes, representing over $200,000 in revenue.
  • The implementation of RTR resulted in a 35.32% usage rate by issuers.
Quantitative Benefit
  • Chargeback stopped 33.13% of Visa disputes initiated.
  • Chargeback retained $200,000 of sales revenue.
  • Chargeback created an 11.7% reduction in Visa dispute volume.

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