WHAT IS RAPID DISPUTE RESOLUTION?

As you are probably already aware, chargebacks can turn into nightmares for business owners, regardless of how frequently you are faced with them. Not only can they lead to adverse sales and ROI, they can deeply impact your relationship with credit card companies and banks.

This is why you should do everything you can to make the chargeback process as seamless as possible. One such step you can take is using what’s known as Rapid Dispute Resolution, a prevention tool that allows for customer issues to be resolved before chargebacks are made official.

Here’s How Rapid Dispute Resolution Works

#1 – A customer requests a chargeback.

#2 – The Rapid Dispute Resolution (RDR) platform allows the acquirer to automatically issue a credit to the customer.

#3 – You then don’t have to worry about VISA, Mastercard, and other credit card disputes that could hurt your reputation. Also participation in the program shows your acquirer that you are 100% committed to being proactive about dispute resolution rather than letting things get out of control.

Why You Should Consider Using Rapid Dispute Resolution

Thankfully, Rapid Dispute Resolution can be beneficial for a number of reasons:

First and foremost, it helps reduce chargeback rates. When you use Rapid Dispute Resolution, you’ll know within hours when there’s an issue that needs your attention rather than in days. You can then solve problems faster and potentially prevent future disputes.

You have the power to improve customer experience. The secret to your success is being as responsive and helpful as possible with your customers. Working to improve customer experience means less negative reviews and higher perceived value.

Ease of use. Rapid Dispute Resolution is extremely easy to set up and maintain. You’ll be amazed at how quickly you’ll see positive results by using it.

How Rapid Dispute Resolution Is Different from Other Solutions When VISA Is Used

As you may already know, to be effective in your chargeback management protocol, using multiple tools at different stages is the best way to structure your setup.

We highly recommend using a combination of Rapid Dispute Resolution, Order Insight, and CDRN. They can be used one after the other or interchangeably as the process progresses.

Here’s how the combo can work:

#1 – Order Insight is often the first choice of issuers can use to resolve an issue. The bank can request the specifics and potentially “talk off” the problem. In this case, no credits or refunds aren’t yet given to the customer.

#2 – If for some reason Order Insight doesn’t work, the case then moves to Rapid Dispute Resolution. The platform works to automatically take money from your account and gives a refund to the customer.

#3 – If the issuer isn’t using Rapid Dispute Resolution or it’s not a VISA-related transaction, the CDRN network refunds the transaction.

You may also strongly consider using the following tools to protect yourself:

    • Analytics
    • Identify verification Tools (AVS, CVV, and 3D Secure)
    • Prevention alerts (Ethoca)
    • Fraud detection tools (third-party vendors)
    • Eliminator (Mastercard)
    • Chargeback responses

How to Get Started with Rapid Dispute Resolution

If you want to use Rapid Dispute Resolution, here are the steps you need to take:

    • Enroll – You can easily enroll through a facilitator. To enroll you’ll need your merchant account ID (MiD) and a list of billing descriptors you use for the MID.
    • Set Response Rules– If you use RDR, you’re basically giving the platform the right to accept dispute liability on your behalf. You will then give your acquirer the ability to debit your account and refund your customer’s money.
      It must be mentioned that in some cases you won’t agree with a chargeback and want to fight it. You set the rules you feel are right and just and the system will operate within those parameters.
    • Resolve Disputes When a customer initiates a chargeback, the bank will first consult Visa Resolve Online (VROL), the platform that both issuing and acquiring banks use to manage disputes and payments.
      The issuer will then check to see where the issue sands and what needs to happen next.
      If the case went through Order Insight (of if you aren’t employing Order Insight), the issuer will move on to Rapid Dispute Resolution. The platform will then take your pre-set rules into consideration.
    • Reconcile Once the money has been debited from your merchant account, you’ll need to make a record in your order management system/CRM.
    • Analyze Outcomes Finally, you’ll need to analyze your RDR data. This is extremely important, as data analysis should be a huge part of your process in general. A careful analysis will reveal why disputes are happening and can help you increase your ROI.

Last Words

As you’re going to decide whether or not to use Rapid Dispute Resolution, it’s important that you gain a full understanding of what is and what isn’t working. The more aware you are, the better decisions you can make!

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