In August 2020, VISA rolls out an exciting new product for resolving fraud. They’ve called it Rapid Dispute Resolution (RDR). RDR aims to reduce the number of alerts a merchant receives, and to expedite the dispute resolution process for a better experience for all stakeholders. RDR leverages existing transaction and dispute infrastructure to minimize costs and enhance the customer experience.
HOW RDR WORKS
RDR expedites fraud resolution with automated responses to disputes based on predefined rules set by the merchant. Let’s say you’re willing to just refund any disputed transaction that’s under a certain dollar amount, or if the transaction sources from a certain issuer, you can program a ruleset to trigger instant refunds.
Merchants can set up to ten rules per BIN, and seven attributes for each rule. The ruleset attributes are:
- Issuer BIN
- Transaction Date
- Transaction Amount
- Transaction Currency Code
- Purchase Identifier
- Dispute Category
- Dispute Condition Code
If a dispute qualifies with any of these rules, it automatically triggers the merchant’s acquiring bank to refund the transaction. No alert is issued. There’s no going into your gateway manually to configure a refund. And there’s no chance of a chargeback slipping through in the dispute.
WHERE RDR FALLS IN THE DISPUTE STREAM
Traditionally, a dispute is created immediately once a problem is reported, and the chargeback follows shortly after: customer contacts issuer, issuer initiates dispute. Visa has now designated a “pre-dispute” phase, where RDR and its companion product Order Insight (OI) allow merchant input to resolve or deflect disputes. So when the customer calls their bank, and they claim fraud, that claim gets evaluated by RDR/OI automatically. RDR executes its “decisioning” on the merchant’s behalf and initiates a refund. OI submits further transaction details to issuer and customer, where they decide if they want to move forward with an actual dispute.
RDR is ideal for merchants who see multiple identical disputes that they routinely refund, such as digital subscription merchants, merchants with low-dollar products, or high-risk merchants that serve demographics with high fraud rates. It’s also ideal for merchants with low dispute totals that simply want the few disputes they get handled.
RDR WITHIN THE SUITE OF VISA DISPUTE RESOLUTION TOOLS
RDR rollout relies on issuer adoption. Merchants can only automate RDR resolutions if the issuer is accepts the interaction. However, this adoption is highly likely among Visa issuers because it sits within the entire suite of VisaNet processing capabilities. If a bank issues Visa cards, then they have access to RDR.
RDR is explained by Visa as an upgrade to its existing Cardholder Dispute Resolution Network (CDRN). CDRN is a passive resolution system, “completely driven by the seller, including dispute review, decisioning and seller-initiated refund, all within a 72-hour window.” RDR enhances CDRN by actively granting merchants “immediate decisioning results, requiring only the initial rule definitions directed by the seller.”
With RDR, the merchant spends only the time it takes to configure their ruleset, plus any subsequent optimization of those rules, and their resolutions are then automated. The customer gets their refund from fraud immediately as well for a better brand interaction. The issuers and acquirers spend minimal time on these disputes as well. All the stakeholders involved in a transaction benefit from this.
CHARGEBACKHELP MAKES RDR EVEN EASIER
Merchants enrolled in the ChargebackHelp Plus RESOLVE module have it even better; RDR is built in to CBH+RESOLVE. ChargebackHelp does all the heavy lifting to get merchants up and running. We configure, maintain and inform your rulesets and empower you to oversee the process with transparency and ease.
If you’re looking to reduce the time and money required to deal with routine disputes, so you can focus on your core business, then you need CBH+RESOLVE. You get RDR, plus the vast array of dispute resolution tools from all card networks, including Visa.
If you’re ready to boost your bottom line and your customer service with superior dispute resolution, get in touch with us today! Shoot us an email, or go old-school and call us at 1(888)821-5302. Our qualified ChargebackHelp specialists will have you up and running in no time.