Rapid Dispute Resolution (RDR) - this VISA product allows resolving disputes by automatic refunds. This solution prevents a chargeback at the pre-dispute stage at the VISA Resolve Online system. Hence such disputes are not included in the chargeback rate.
For instance, a customer raised a dispute with the card issuer. In case this MID is enrolled for the RDR program, the claimed order will be refunded before it becomes a chargeback, hence saving you chargeback fees and keeping your chargeback score healthy. RDR allows to automatically accept and provide funds back to the cardholder, thereby preventing a chargeback. RDR alerts do not require any actions on the Merchants’ side, unlike other alerts. These alerts appear as a chargeback notification with the specific status - “resolved”.
Rapid Dispute Resolution (RDR) system is connected to the merchant’s account in acquiring bank via BIN and CAID. This provides 100% accuracy for received alerts and ensures that other users’ false alerts don’t reach the merchant.RDR provides automatic dispute resolution based on rules predetermined by the merchant. The system has a powerful inbuilt decision engine that allows merchants to set their own rules. The most sound practice is automatically refunding all RDR alerts, as they will become chargebacks in the future. Nevertheless,
some merchants find it helpful to set a specific threshold for the transaction amount, defining transactions they would like to dispute. RDR provides the following customized parameters for rule definition:
- 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. 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.