Rapid Dispute Resolution FAQs

2020-08-24T21:19:25+00:00August 24th, 2020|

Commonly asked questions about Visa’s new dispute resolution tool

Click any question for the answer.

What is Visa’s RDR?2020-09-18T01:00:10+00:00

RDR (Rapid Dispute Resolution) is a Visa solution that enables merchants to automate dispute resolutions with pre-defined rulesets that trigger a refund for fraudulent transactions. It is meant to reduce the amount of time and resources expended by the merchant in fraud disputes, and to expedite the refund process and improve customer experience for Visa cardholders. RDR is incorporated within Visa issuers’ dispute management platform, Visa Resolve Online (VROL).

What are the benefits of using RDR?2020-08-24T18:56:24+00:00

RDR was designed to benefit all stakeholders in a transaction.

  • The customer gets a refund immediately.
  • The issuing bank has a happy customer.
  • The acquiring bank has a compliant merchant account.
  • The merchant is freed up from a cumbersome resolution process
How does RDR improve my dispute response?2020-08-24T18:30:08+00:00

RDR is hands-free dispute resolution. Prior to RDR, merchants would have to refund fraudulent transactions manually through Ethoca/Verifi alerts, or have those funds taken from them by a chargeback plus fees and penalties. RDR not only prevents chargebacks, it prevents the alerts. Refunds are sent once the automated decisioning is triggered.

How does RDR improve customer experience?2020-08-24T18:30:56+00:00

Cardholders would have to wait two to five days, and sometimes longer, to get their refunds. When a dispute qualifies for RDR under pre-set rules, a refund is delivered to the cardholder immediately once the dispute is entered into VROL.

Can RDR prevent chargebacks?2020-08-24T18:32:20+00:00

Yes! By refunding a transaction automatically, the dispute can not become a chargeback. Not only does RDR prevent chargebacks, it prevents the alerts that precede them for a more efficient resolution.

How is RDR different from the alerts I get from Verifi?2020-08-24T22:44:23+00:00

Verifi alerts are routed through their Cardholder Dispute Resolution Network (CDRN). To resolve these, the merchant goes into their payment gateway to refund each alert manually. RDR is triggered before an alert is issued, and routes the refund directly to the cardholder’s account. RDR refunds are executed over Visa rails, not through the processor or acquirer. If RDR is not triggered, the dispute then routes to CDRN.

Is RDR available to all merchants?2020-08-24T18:38:58+00:00

RDR is currently in beta and we don’t know exactly when it will be available to all merchants. If you would like to be part of the beta program or to secure your enrollment spot please contact us.

How do I qualify for RDR?2020-08-24T18:41:11+00:00

Once beta phase is completed, merchants can apply for RDR through Visa directly, which requires extensive integration with their processing, and configuration of rulesets. ChargebackHelp includes RDR within ChargebackHelp Plus (CBH+). CBH+RESOLVE handles the integration and maintains the connection so the merchant doesn’t have to.

Do I need to configure my RDR rulesets?2020-08-24T18:47:46+00:00

Merchants with deeper processing history and previous exposure to fraud will have a better idea which disputes to target for RDR. CBH+RESOLVE can set triggers based on that history. For newer merchants, a default configuration can be provided. From there, CBH+RESOLVE will work with the merchant to fine-tune rules and triggers over time. We typically recommend merchants at least set their rules by dollar amount of transactions.

How do RDR rulesets work?2020-08-24T18:48:26+00:00

Merchants can set up to ten rules, each with up to seven attributes, specific to the BIN/CAID identifiers of a given merchant account. The seven attributes are

  • Issuer BIN
  • Transaction Date
  • Transaction Amount
  • Transaction Currency Code
  • Purchase Identifier
  • Dispute Category
  • Dispute Condition Code

If a disputed transaction matches an attribute or combination thereof, then the refund is executed automatically. A ruleset example could be as simple as any transaction below a certain amount is refunded. Complexity can also be added, for example a transaction of a certain amount, in a specific currency, for all transactions stemming from a single issuing bank.

What is a BIN/CAID?2020-08-24T22:41:47+00:00

BIN/CAID is a combination of numbers that Visa uses together to identify merchant accounts (MIDs) in VROL. BIN is the Bank Identification Number of the acquiring bank handling the transaction. CAID is the Card Acceptor ID that identifies a store location or transaction point.

What if a dispute does not trigger an RDR refund?2020-08-24T18:54:01+00:00

VROL routes unqualified disputes into their Allocation and Collaboration workflows. These disputes become alerte which are sent to the merchant through Verifi’s Cardholder Dispute Resolution Network or CDRN. Refunds for these disputes must be executed in the merchant payment gateway, manually. Or, merchants can let the alert chargeback, and then fight the chargeback through representment.

Does RDR work with MC, Amex and Discover too?2020-08-25T17:57:33+00:00

RDR is a Visa product, made possible by Visa mandates for dispute notifications. So disputes for AMEX or other card transactions are not covered by RDR.

Does RDR work with debit transactions?2020-09-03T17:03:44+00:00

RDR works with any transaction made over the Visa network. This includes not only credit cards, but debit and pre-paid cards as well.

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