Rapid Dispute Resolution
Earlier this year, Verifi introduced a new product, Rapid Dispute Resolution (RDR), in collaboration with Visa. RDR is powered by a robust decision engine that automates dispute resolutions based on rules set by the seller, reducing time and effort invested in managing and resolving dispute volume. As a feature of Verifi’s new RESOLVE solution, RDR alongside Verifi’s Cardholder Dispute Resolution Network™ (CDRN®) provide the most effective dispute mitigation solution to serve on a global scale. After months of collaboration with Visa and our client partners, we’re proud to announce that Rapid Dispute Resolution is launching as a beta in July 2020.
“RDR came about as a network option to provide an expedited resolution for a dispute without having to handle the refund transaction ‘off-network’ but taking advantage of the benefits of the existing CDRN solution,” says Hitesh Anand, Chief Product Officer at Verifi. “RDR provides a seamless integration for issuers without having to change what they do today to process a dispute. Issuers benefit because they are able to resolve cardholder pre-disputes in real-time. Sellers benefit because disputes that the seller would have resolved later anyway as part of the dispute process are now resolved at the pre-dispute stage without any seller overhead of manually refunding the money. Additional benefit for sellers is that RDR auto-resolved disputes will not count against their dispute ratio.” Verifi reviewed internal data and worked closely with our client partners to discover that various sellers would routinely credit disputes that fit certain parameters specific to each business. In exploration and development, we asked how much time, resources, and operational cost could be saved by automating these routine credits? Verifi’s answer is Rapid Dispute Resolution.
Expanded Global Coverage with Visa
Created in collaboration with Visa, RDR has the ability to reach tremendous issuer coverage, quickly. RDR is incorporated within Visa issuers’ dispute management platform, Visa Resolve Online (VROL), making issuer participation as simple as opting in for the service. The Visa network connects to over 61 million seller locations globally and is the largest card brand network with thousands of issuers throughout the world, positioning Visa and Verifi above competitors to take this technological leap forward.
|Coverage for disputes on all major card brands by 2021|
How Rapid Dispute Resolution Works
The issuer submission of a qualifying dispute triggers RDR rules in our decisioning engine. Resolved RDR disputes activate specific messaging in the VROL system. The resulting real-time message includes data elements that immediately notify issuers and acquirers that the resolved dispute is not a chargeback. This notification also immediately notifies acquirers to move funds to the issuer. This seamless communication provides a hands-off dispute resolution service for all participating sellers.
NOTE: Acceptance of liability is not counted towards a seller’s monthly count or chargeback-to-sales ratio.
Automated decisioning is a revolutionary innovation in dispute management. Rules defined by the seller direct the decisioning engine to initiate notification to Visa, the issuer, and the acquirer that funds should be moved from the acquirer to the issuer on the disputed transaction. For example, a seller can set a rule to accept liability on any dispute on transaction amounts of $25 or less. Sellers can also set a rule to accept liability on transactions with unique purchase identifiers that are passed through with the transaction. So, a seller can better serve a longstanding customer and ensure their continued loyalty.
Initially, rules will be defined by sellers through a simple rule selection guide provided by a Verifi customer support representative. Once the rules are confirmed, submitted per BIN and CAID and set in Verifi’s system, the seller will go live on the global system.
A More Complete RESOLVE Solution
In July 2020, RDR will join CDRN as a new feature of Verifi’s RESOLVE solution. Both dispute management services help resolve disputes before they escalate to a chargeback and impact a seller’s dispute ratio; however, there are some important differences in their functionality and how they can best serve a seller’s particular needs. CDRN allows participating issuers of all major card brands to direct confirmed dispute notifications to the seller for hands-on review, resolution, and seller-initiated credit. Disputes filed with participating Visa issuers are routed through RDR into our innovative decisioning engine for automated resolution, which is determined by a seller’s defined rules. Furthermore, RDR extends coverage on a global scale like never before, taking the strain off seller business operations and providing an improved customer journey in real-time.
The RDR Difference
Since 2005, Verifi has been a leader in the payment industry as an innovative and disruptive force in dispute management services. Verifi’s CDRN bridged the gap between issuers and sellers, allowing disputes to be resolved before they escalated. Now, RDR streamlines that resolution process by automatically resolving disputes at the point of submission, which would have been manually credited before. With the launch of RDR in July 2020, Verifi and Visa will lead a new path for issuers, acquirers, and sellers to work in collaboration to reduce disputes throughout the payment ecosystem, as well as provide a better customer experience. “The industry is going to look at RDR positively,” Anand says. “RDR is leading the way for Visa and Verifi to use more automated decision making, rules, and machine learning to reduce the number of disputes and increase consumer satisfaction with both issuers and sellers.”
Payment solution providers, eager to differentiate their offer of a secure and effective platform to e-commerce businesses, will benefit by boosting their value-add services with RDR. Additionally, issuing banks can provide a more seamless and frictionless service to their customers to ensure greater satisfaction and loyalty.
RDR was devised to address the needs and goals of all principal players in the payment industry. Automated technology is becoming the standard in customer service, and Verifi and Visa will continue our joint commitment to lead innovation that identifies and serves those needs. We can’t wait to tell you more, so stay tuned for additional details on RDR as we get closer the launch date.
For more information on Rapid Dispute Resolution or to sign up for service, contact Verifi today.