There’s no question that disputes pose a problem for merchants. They take up time and resources, and in some cases, can lead to more severe implications like increased fees or account termination. 

Even more frustrating, many of the chargebacks you deal with are no fault of your own - be it fraud, forgetfulness, or something else. 

That’s why having an effective dispute resolution strategy is so important, and it’s part of what brought about the introduction of Visa Rapid Dispute Resolution - also known as the Visa RDR Program.

This is a game-changer for automating your efforts to protect profits and maintain trust with customers and financial institutions alike. You can set your parameters for when you want to issue a refund and when you want to take further action, the system will work around the clock for you.

Learn more about the program below, including how you can develop the most compressive chargeback prevention defense possible with Disputifier, the #1 chargeback company!

The Importance of Chargeback Management

Before we officially introduce the Visa RDR program, you need to fully understand the stakes at play. So, how do chargebacks affect a business?

Sure, they can be a headache to manage manually - and the financial losses can be troublesome too. But it’s not just the lost revenue and chargeback fee you need to be worried about.

High chargeback ratios can damage your relationship with banks and payment processors, leading to higher processing fees or even termination of your merchant account if things really get out of control.

These disputes can also harm your reputation and erode customer trust. Customers who experience issues with their purchases may share their negative experiences, affecting your brand’s reputation

That’s why putting measures in place to prevent disputes before they occur is worth the time and investment. The same is true of optimizing your chargeback management process so you can win more disputes. So, how does Visa Rapid Dispute Resolution fit into the equation?

What is Visa RDR Program?

What is Visa RDR, exactly? This automated service is designed to resolve disputes quickly and efficiently, minimizing the time and effort required from merchants. 

It’s based on predefined rules set by merchants to automatically resolve disputes, typically by issuing refunds before a chargeback is formally processed. 

It’s not to be confused with another program offered by Visa, though - Cardholder Dispute Resolution Network (CDRN). While both aim to reduce chargebacks and streamline the resolution process, they work very differently.

CDRN involves a more manual process where the issuing bank notifies you of a dispute, allowing you to resolve it before it becomes a chargeback. This can actually be beneficial in some cases as you have more control over the resolution process and greater flexibility.

Still, time is money - and the less you have to focus on handling chargebacks, the better. Here are some of the benefits of enrolling in and setting up Visa RDR:

• Speed and Efficiency: Automation resolves disputes quickly, often within hours, minimizing the time and resources spent on dispute management.
• Reduced Chargebacks: Addressing disputes before they become chargebacks helps you maintain a low chargeback ratio, in turn protecting your reputation and reducing potential penalties from payment processors.
• Customization: You can tailor the system to your specific needs with rules that reflect your business model and risk tolerance. 
• Cost Savings: Resolving disputes through Visa RDR can be more cost-effective than dealing with chargebacks.

Interested? You should be! Let’s take a deeper look at how the Visa Rapid Dispute Resolution process works and how you can leverage it yourself.

How Visa Rapid Dispute Resolution Works

Part of what makes the program so appealing is how easy it is to take advantage of. Once it’s set up you can enjoy peace of mind knowing it’s protecting your business around the clock. Here’s an overview of the process.

Setting Up the System

You’ll enroll in the Visa RDR program through a company like Disputifier. They’ll request certain information from your payment processor.

From there, it’s just a matter of configuring the predefined rules that determine how disputes will be handled. These are based on factors such as transaction amount, dispute reason code, and customer history. 

For example, you might choose to automatically issue a refund for disputes under a certain dollar amount or for specific types of transactions. This is entirely up to you.

The Dispute Resolution Process

When a cardholder files a dispute with their issuing bank, the bank immediately flags the transaction and sends the dispute information to Visa’s network. The Visa RDR system evaluates the dispute against your predefined rules in real-time, ensuring a swift response.

If the dispute matches the criteria set by your rules, the system automatically issues a resolution - typically a refund. This prevents the dispute from escalating into a formal chargeback.

Both the merchant and the cardholder are notified of the resolution. You’ll get a detailed report of the dispute and its resolution, while the cardholder sees the refund in their account.

However, there will inevitably be cases where the conditions of the chargeback do not meet your rules for automatic resolution. The dispute will be escalated for you to handle it manually.

Example:

To truly appreciate what makes this service so special let’s go over a real-world example of what it can do. Consider a high-volume e-commerce retailer that deals with numerous disputes monthly. 

By integrating Visa RDR, the retailer sets rules to automatically refund transactions under $50 when a dispute is filed for reasons such as “services not rendered” or “item not as described.” 

This approach drastically reduces the number of chargebacks, allowing the retailer to focus on more complex disputes that require manual intervention.

Harness the Most Sophisticated Defense Against Chargebacks With Disputifier!

While Visa Rapid Dispute Resolution is a powerful solution for preventing chargebacks, it’s just one of many ways you can safeguard your business from lost revenue and an eroded reputation. The best approach is a more comprehensive defense - like the one we’ve devised here at Disputifier.

Our solution stops up to 99% of chargebacks in the first place through a combination of chargeback alerts (such as RDR) from Ethoca and Verifi, fraud scanning, and order unreceived prevention tools. 

All of these work synergistically to accept more orders and reduce false positives, delivering an ROI. Not only that, but you’ll also improve customer satisfaction. It all works automatically without you having to do anything, so you can focus on more pressing matters.

But still, chargebacks happen - even if it’s just 1% of the time. That’s why our system also fights chargebacks on your behalf, boosting your chargeback win rate as high as 70%! Compare that to the industry average of just 10-30% and it’s easy to see why businesses trust Disputifier.

We fight thousands of chargebacks monthly and are continuously improving our process through A/B testing. Every response we create is customized to the chargeback at hand to ensure the greatest chances of winning.

However, you only pay when we win a chargeback for you. We also guarantee a 500% ROI  from letting us fight chargebacks for you. So what do you have to lose? Get started with Disputifier today and find out firsthand why we’re the best chargeback prevention company.

Wrapping Up Our Guide to Visa RDR Program

It’s clear that Visa RDR program can be a powerful tool in your arsenal of defense against chargebacks. It helps you streamline dispute management through pre-set parameters so that you can focus on what matters most to your business.

Want to learn more about perfecting your chargeback prevention and management processes? Explore our blog for information on the chargeback time limit , what happens if you lose a chargeback, chargeback email to customer, what if merchant does not respond to dispute, how to win a chargeback as a merchant, chargeback representment, merchant chargeback insurance, pre-arbitration chargeback meaning, fraud chargebacks, and more.

Don’t let chargebacks affect your bottom line or your peace of mind. Protect your business with Disputifier today and see what has earned us the trust of thousands of companies worldwide!