Remote Purchasing and Automation
The rapid growth of e-commerce has brought on technology that provides greater purchase transparency for customers. After all, the customer is the king – they have the right to know what’s happening in their accounts. Now, up to 73% of customers engage with their issuer’s mobile app or website at least once a month to review their transactions*. As a result, consumers have become more aware of possible payment fraud and are quicker to report as such to issuers. Unfortunately for sellers, this frequently means an increase in chargebacks, many of which may not be actually valid.
Furthermore, the trend for at-home purchasing has increased significantly in 2020. The more that people are working at home, the greater interest they take in improving their home environment. In light of this trend, Home Depot has reported an increase in online purchasing of 80% year-over-year for Autumn 2020**. Remote payments are projected to grow more than 66% by 2025†, suggesting that at-home and mobile purchasing are setting new standards for e-commerce sales. One can only speculate what this means for a commensurate increase in chargebacks, valid or not.
There’s no question that e-commerce, remote purchasing in general, has expanded in availability to consumers in the past several years, particularly in 2020. Automated authentication and authorization have become the standard for today’s online sellers and buyers. Customers now have greater visibility of their purchases, when they want it and where they want it. And real-time fraud protection has also been set up by sellers and their payment facilitators to further ensure safe purchasing. Indeed, the payments landscape has risen to a new paradigm of convenience and protection by automation. But where is the advancement in real-time dispute resolution? How can sellers stop the inevitable increase in chargebacks, the other passenger in this automated flight to the future?
Stop Chargebacks with Rapid Dispute Resolution
Developed by Visa and Verifi, Rapid Dispute Resolution (RDR) provides automated, real-time dispute resolution and chargeback prevention for e-commerce buyers and sellers. Now, sellers can protect themselves – and their customers – from unwarranted disputes at the time customers present them to their payment card issuers.
What’s more, only Visa and Verifi could provide the real-time resolution of RDR on a global scale. Visa is the largest card brand provider in the world with the largest issuer network. Verifi’s peerless payment protection technologies, combined with Visa’s array of purchasing capabilities throughout the world of payments, can now enable sellers and issuers to resolve transaction disputes automatically. A much-needed solution for all stakeholders in the payments industry, RDR will soon be live globally with general availability for all interested parties.
Seamless Control for Sellers
What does this new level of automation mean for sellers? Establishing their place and an even playing field that prevents unnecessary chargebacks.
By implementing RDR, sellers simply define terms of resolution eligibility by applying rules and attributes set up in Verifi’s decisioning engine. The process is simple. When an issuer submits a disputed transaction into Visa’s dispute processing platform, disputes qualified by sellers’ pre-defined rules are immediately resolved by RDR at the pre-dispute stage. In other words, this automated action occurs prior to the case being fully processed as a dispute, stopping a chargeback from ever happening.
Verifi has made defining rules and attributes for automated dispute resolution a simple task for sellers. In fact, once completed, the automated system of RDR enables sellers to focus their attention and resources on business growth and customer service, instead of resources being diverted to manual dispute review and the laborious efforts of chargeback representment. Of course, rules and attributes can be adjusted at any time to address changing trends and suit the best needs of the individual business.
Real-time dispute resolution equates to hands-off automation that stops unwarranted chargebacks:
• No manual review or extra operational demands
• No impact on dispute ratio – all resolutions are complete and final
• No drain on revenue from unwarranted chargebacks
• Service reports can lead to increased authorizations
• Extend and improve customer service in post-transaction
Absolutely no integration is required by the seller or their payment facilitator. Since RDR operates at the issuer level, once sellers have opted in and define their rules, Verifi’s real-time, automated decisioning engine does the rest, requiring no further action by sellers.
Perfect Partner to the New Purchasing Normal
In the new normal of predominant online purchasing, automated dispute resolution will be a fixture in post-authorization customer service.
Once sellers define their rules and attributes and submit them to Verifi for implementation in the world’s only automated, real-time decisioning engine, unwarranted chargebacks can be significantly reduced. Issuers only need to access RDR, already implemented in the Visa dispute processing platform, to take advantage of this great service. At the point of real-time decisioning, communication is immediately sent to acquirers, so they can provide a quick return of funds to the customer. In all, the seller maintains a hands-off role in this correction. Benefitting all payments stakeholders, RDR provides expanded global protective coverage against revenue-diminishing disputes and chargebacks.
All payments stakeholders will benefit:
• Sellers maximize operational resources, revenue reliability, and customer loyalty, protecting their brand and payments viability
• Issuers provide quick, efficient dispute resolution services for cardholders, reducing resource and operational drain
• Acquirers maintain healthy dispute ratio on behalf of their seller clients, enabling portfolio stability and growth
• Customers experience quick, simple, and complete dispute resolution for increased satisfaction with the level of automation they’ve come to expect
Step up to the next level in online payments protection with RDR. Contact Verifi today to learn more.
*”Improving the Dispute Experience” – Aité, May 2020
**”COVID-19 Impact on Global E-Commerce and Online Payments” – yStats.com Nov. 2020
†”Ecommerce Payments Deep Dive Data & Forecasting 2020-2025″ – Juniper Research, Nov. 2020