Rapid Dispute Resolution (RDR) is a product offered by VISA that allows for automatic refunds to resolve disputes. This solution prevents chargebacks at the pre-dispute stage on the VISA Resolve Online system, which means that these disputes are not included in the chargeback rate.
Here's how it works: If a customer raises a dispute with the card issuer, and the merchant has enrolled in the RDR program, the claimed order will be refunded before it becomes a chargeback. This saves the merchant chargeback fees and keeps their chargeback score healthy. RDR alerts do not require any actions on the merchant's side, unlike other alerts. They appear as a chargeback notification with the specific status - "resolved".
The RDR system is connected to the merchant's account in the acquiring bank via BIN and CAID, providing 100% accuracy for received alerts and ensuring that false alerts from other users don't reach the merchant. The system has a powerful decision engine that allows merchants to set their own rules for automatic dispute resolution. The most recommended practice is to automatically refund all RDR alerts, as they will become chargebacks in the future. However, some merchants find it helpful to set a specific threshold for the transaction amount, defining which transactions they would like to dispute. RDR provides several customized parameters for rule definition, such as:
- Transaction Date
- Transaction Amount
- Issuer BIN
- Transaction Currency Code
- Purchase Identifier
- Dispute Category
- Dispute Condition Code
- Chargeback reason code
Disputes that undergo the RDR process are not included in the chargeback rate, and no chargeback fee is fined. RDR alerts relieve chargeback management costs and don't require any actions on the merchant's side. Merchants can participate in both the RDR system for global VISA coverage and the CDRN for issuers outside the VISA cardholder network to maximize chargeback prevention alerts. As RDR and CDRN alerts originate from different sources, merchants have no risk of receiving a double alert on a single transaction.Disputes that undergo the RDR process are not included in the Chargeback rate, and no chargeback fee is fined. Unlike other alerts, RDR alerts do not require any actions on the merchants’ side, relieving chargeback management costs. These alerts appear as a chargeback notification with the specific status - “resolved”. Merchants can participate in both the RDR system for global Visa coverage and in the CDRN for issuers outside the VISA cardholder network to maximize the coverage of chargeback prevention alerts. In addition, as RDR and CDRN alerts originate from different sources, merchant has no risk of receiving a double alert on a single transaction.
To learn more about RDR and set up this functionality, contact your Account Manager or reach out to the support team.