When a dispute happens between you, the merchant, and a customer, you need to act fast to resolve the situation before it gets escalated to a chargeback.
Rapid Dispute Resolution (RDR) is that quick response solution - a platform that helps merchants avoid chargebacks, improve customer relationships, and automatically resolve disputes.
You can’t avoid disputes entirely, but with RDR, you can be proactive about responding and minimizing their impact, which frees up internal resources to direct towards more important strategic initiatives.
Below, we explain RDR, how it works, the benefits of RDR for merchants, and how you can use it to reduce your chargebacks with Checkout.com.
Offered in partnership with Verifi, Rapid Dispute Resolution (RDR) is a platform that helps merchants automatically resolve disputed Visa transactions before they become chargebacks.
RDR can be used to resolve both fraud and non-fraud payment disputes, and, while it only applies to Visa transactions, it supports multiple issuing banks.
Merchants can use RDR via their payments processing platform to bring down their chargeback ratio, improve customer experience, and reduce their administrative load.
Disputes occur whenever a customer (legitimately or otherwise) claims that they don’t recognise a transaction in their bank account or that they have been fraudulently charged.
If the customer is successful, the merchant has to issue a chargeback, losing the sale and paying a chargeback fee to the acquirer. If the merchant’s chargeback ratio becomes sufficiently high, they may be placed on the Visa Dispute Monitoring Program (VDMP), which, if they don’t manage to bring their chargebacks down within a particular time frame, could result in severe financial penalties.
Even if the merchant wins the dispute, the time and effort spent submitting evidence and going back and forth with issuers and acquirers can be seriously disruptive to daily operations.
That’s where RDR comes in. If you’re enrolled in RDR, you can define rules that automatically move eligible disputes into a pre-dispute stage and issue a quick refund to the cardholder. These refunds are not counted as chargebacks and, rather than the months it can take via the dispute route, the customer gets their money back within a couple of days.
RDR rules are completely customizable, so you can tailor them to your preferences and risk appetite. For example, you could choose to accept all fraud disputes or only accept those under $100 in value. You can even define rules around specific currencies and risk scores.
The key benefits of RDR are:
As long as they accept Visa transactions, RDR is a good fit for a wide range of merchants and scenarios.
Resolve disputes quickly, manage customer relationships, and avoid chargebacks with RDR from Checkout, offered in partnership with Verifi.
Whether your chargeback ratio is climbing dangerously high or you lack the internal resources to challenge disputes, with Checkout.com, you have the flexibility to define rules that work for you.
Find out more about RDR with Checkout.com by speaking to a member of our team.