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Rapid Dispute Resolution (RDR)

Learn about RDR and what this powerful tool can do to help your business thrive like never before.

Rapid Dispute Resolution (RDR)

If you find yourself wondering what RDR Visa is and the massive impact it may have on your business, you are at the right place. RDR stands for Rapid Dispute Resolution. This service from Verifi, a Visa Solution is an automated decision engine resolving pre-disputes before they become chargebacks.

How does it work?

Rapid Dispute Resolution (RDR) automates dispute resolution by employing a robust decisioning engine that is directed by seller-defined rules. Rapid Dispute Resolution Visa resolves disputes at the pre-dispute stage, a pre-dispute occurs before a chargeback is filed. It is initiated when a Consumer challenges a transaction, with the intent to dispute its legitimacy. By using RDR, sellers can reduce the time spent manually reviewing disputes and crediting customers. Not only does this automated solution keep the seller in charge of what disputes to accept or fight, it also enhances the customer experience with an automated credit.

Visa Rapid Dispute Resolution introduces a level of automation that is reliable and free of human interaction once the initial rule parameters are set. This solution leaves sellers more time for core business operations and planning strategic growth. RDR Visa also provides a final decision, meaning the transaction cannot be disputed again in the future. Rapid Dispute Resolution represents a major paradigm shift in how disputes can be resolved, benefitting all players in the post-transaction landscape.

Visa does not recognize RDR-resolved transactions as chargebacks

Merchants work hard to provide an exceptional customer experience and protect their business from losses arising from disputes. Unfortunately, “Up to 76% of all customers bypass the merchant with a dispute” (The Chargeback Triangle, Javelin Strategy & Research,2018). Preventing chargebacks at the pre-dispute stage is a great opportunity for merchants to protect their business from losses, improve the customer experience and reduce operational strain by removing the need for manual dispute review. Another benefit of resolving at the pre-dispute stage, Visa does not recognize RDR-resolved transactions as chargebacks – this will help control a merchant’s dispute ratio when reviewed by Visa. It is important to note that acquirers may use their own metrics and parameters to assess a merchant’s risk profile.

In April 2021, Visa set rules in place for acquirers to classify and report on RDR resolve pre-disputes differently to traditional chargebacks.  This helps merchants and acquirers identify the true number of pre-disputes in the ecosystem, information that was historically not available to acquirers.

How to set it up?

It takes around 13 business days to get enrolled. There is absolutely no integration needed. The resolution process with Visa Rapid Dispute Resolution is automated and instant. It is based on a robust decision-making engine customized by merchants. There are 10 customizable rules and 7 unique attributes to activate the auto-decisioning.

What are the advantages of RDR for your business?

  • It improves customer experience and satisfaction because the cardholder is provided a decision in real-time. Research shows that positive interactions with merchants mean that customers will be more likely to purchase one of your products or services in the future.
  • It helps merchants control their dispute ratio. If a dispute ratio exceeds the threshold set by card brands, merchants risk monitoring programs and also their ability to process payments.
  • It avoids manual work on your side. No more documents to gather to represent a dispute, no work manual review to determine if a chargeback should be represented or not, etc.
  • It avoids over-refunding transactions because you have the chance to prevent a chargeback down the road. Refunding TC40/fraudnotice is not an optimal strategy because only 64% of them result ina dispute (Verifi Internal Analytics, January 2022). Merchants refunding 100% of fraud alerts are likely to over-refund. Those fraud alerts are meant to inform, create blacklists, or enhance fraud reporting. Depending on the timing when the TC40/fraud notice is received, treated and transaction is refunded, a dispute is very likely to be already ongoing.
  • It empowers merchants to play an active role in the pre-dispute process.

Are you ready to benefit from RDR?

If that sounds about right, get in touch now as eFlow Processing is an Authorized Reseller. You will see what this powerful tool can do to help your business thrive like never before.

Rapid Dispute Resolution (RDR)
Benjamin Joyeux
Founder & CEO


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