CDRN reduces chargebacks for merchants by as much as 40%
LOS ANGELES, CA–(November 6, 2013) – Verifi, Inc., the leading provider of payment and risk management solutions for card-not-present merchants, today announced a distribution partnership with RevGuard, LLC. Under the terms of the partnership, RevGuard will offer Verifi’s Cardholder Dispute Resolution Network (CDRN) as part of their OCO® “Optimized Customer Outcome” platform.
RevGuard has more than 300 brands and over 10 million client customers on its service platform. RevGuard’s Saas-based OCO® System (www.revguard.net/HowItWorks) helps e-commerce companies, particularly continuity and installment payment companies, optimize their customer service experience through A/B and multivariate testing. The system operates on a Cloud-hosted platform for Interactive Voice Response (IVR), acustomer service web-interaction platform and an email-based interaction. When implemented, OCO has been proven to optimize customer experiences, providing a savings of up to 50% on return costs, an increase of revenue per customer of 8%, a reduction of 35% on customer service costs and a reduction of up to 40% on chargebacks. The system reliably delivers an 80% (or greater) increase in profitability for RevGuard’s clients.
Through this partnership, RevGuard clients will now be able to use Verifi’s CDRN® – a platform that connects merchants with issuers to eliminate as much as up to 40% of their credit card customer disputes before they become chargebacks. Using CDRN, on a real-time basis, merchants receive notifications that a customer has contacted their issuer and initiated a dispute that might otherwise become a chargeback unless the merchant responds. CDRN provides the merchant with the option to either refund the transaction or allow the dispute to escalate to a chargeback.
Verifi, through independent research, found that customers were contacting merchants directly only 14% of the time to resolve credit or debit card disputes for products they purchased and instead, customers were contacting their card Issuing Banks first 86% of the time. This meant that merchants had little opportunity to learn about and directly resolve these disputes with customers before they became chargebacks. This disconnect between merchants and their customers generates negative downstream effects for the issuer and the merchant, often in the form of bad customer experiences, lost revenue, unpaid and shipped merchandise, fees from their acquirer, potential fines from Visa and MasterCard. If the effects become severe, it could ultimately result in the loss of a merchant’s ability to accept credit and debit cards.
Verifi’s new integration method for CDRN allows merchants to subscribe and begin using the service the same day, eliminating all integration barriers, and drastically reducing the time and cost to enable.
“Verifi is excited to offer its CDRN service through RevGuard,” said Tony Wootton, Chief Revenue Officer at Verifi. “CDRN has an immediate impact, reducing chargebacks for merchants, as well as their operating expenses and risk.”
“We are thrilled to be offering CDRN to our customers. The fact that it prevents chargebacks post-sale, rather than during the ‘checkout process’ makes it a very appealing solution for our clients who want to avoid anything that will disrupt their customer’s purchase process,” stated Blair McNea, CEO of RevGuard.
McNea added, “Our Clients know the secret to long term success is to create great customer relationships. If a customer has a dispute outside of typical customer relationship channels, CDRN allows our clients to proactively resolve a dispute in favor of the customer. Verifi has built a system that is both a win for consumers and a win for merchants.”
Both organizations will be attending the ad:tech New York conference, held November 6-7, 2013, at Javits Center in New York City (booth #707). They will be enrolling merchants in CDRN throughout the conference.
Verifi, an award-winning provider of end-to-end payment protection and management solutions, was founded in 2005 to help our clients effectively manage the payments challenges they face every day. Verifi helps merchants safely process payments, combat fraud, prevent and resolve costly chargebacks, as well as increase billings and keep loyal customers. Our best-in-breed solutions and white glove support are trusted by a wide range of industries from emerging companies to the Fortune 500. Headquartered in Los Angeles, California, we process more than $20 billion transactions annually and currently serve more than 12,000 accounts globally. For more information, visit:www.verifi.com.
RevGuard is a Saas-based company which uses A/B and Multivariate testing in a Cloud-hosted environment to dramatically improve the profitability of its merchant clients. Optimized Customer Outcome (“OCO”) is a patent-pending technology that operates through Cloud-hosted IVR, hosted web and email applications which fully integrate into customer CRM’s.The addition of chat, text, social media and Live CSR testing (through integration partners) is scheduled for completion in 2014, allowing for A/B testing at all touch points of a customer relationship. For more information on RevGuard OCO, please visit http://www.revguard.net or contact Walter Long Sr. Vice President of Business Development at [email protected]
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