“By implementing RDR, sellers define terms of resolution eligibility by applying rules and attributes set up in Verifi’s decisioning engine reducing dispute ratios, removing unnecessary disputes from the ecosystem, and improving the overall consumer experience”
New technology trends, changes in customer behavior, competition from new digital entrants, and regulatory initiatives herald tomorrow’s payments landscape. Furthermore, the ongoing pandemic is forcing players in an already transitioning industry to revisit their business fundamentals. California-based Verifi protects sellers in the post-purchase stage of the transaction life cycle. The company assists sellers to prevent and resolve pre-disputes and recover funds otherwise lost to chargebacks. Their flagship solution, RESOLVE, helps sellers either manually review or automate the resolution of pre-disputes. By implementing Rapid Dispute Resolution (RDR), the newest product in the RESOLVE Solution, sellers define terms of resolution eligibility by applying rules and attributes set up in Verifi’s decisioning engine reducing dispute ratios, removing unnecessary disputes from the ecosystem, and improving the overall consumer experience.
Founded in 2005, Verifi began by providing managed services for dispute representment. The leadership quickly realized there was a need for all stakeholders in the dispute lifecycle to reduce unnecessary disputes and overall costs. In 2007, Verifi launched Cardholder Dispute Resolution Network™ (CDRN®) – a product that notified a seller of a dispute and provided the opportunity to refund a customer, avoiding a chargeback. Following the success of CDRN, Order Insight® was launched in 2016 to facilitate data exchange between issuers and participating sellers.
The aim of Order Insight was to provide enhanced transaction detail to cardholders, helping validate sales and identify friendly fraud.
Visa acquired Verifi in 2019. Since joining the most extensive financial network globally, Verifi and Visa launched RDR. RDR is an evolution of CDRN, and it automates the resolution of chargebacks at the pre-dispute stage – before a chargeback has been officially created. The automated product is based on a rules-based decision engine and sellers set parameters for refunding their customers and accepting liability of the transaction. Visa and Verifi handle the rest. This reduces the downstream operational resources required to manage a dispute, improves the customer experience, provides additional transparency into the dispute process for all payments stakeholders, and can even act as an early warning system for sellers into their customers’ intent. RDR is genuinely global, with Visa issuers from across the world using the product.
Currently, RDR expands the global reach of Verifi’s dispute services and is set up to resolve disputes relating to Visa transactions, while CDRN handles all other major card brand disputes. Disputes resolved by either service will not count against a seller’s dispute ratio. RDR puts the seller in the dispute resolution driver’s seat. Being that up to 76% of customers go right to their issuer with a dispute1, RDR allows the seller to resolve a dispute before it escalates to the point of fines, fees, and potential impact to the seller’s processing privileges. Verifi is a trusted partner for a wide range of businesses in various industries because its solutions are functional, provide reliable ROI, and its commitment to customer service stems from the core of the business philosophy.
Awards aside, Verifi’s solutions have field-tested success. In 2020, their RECOVER solution returned $66 million to their clients from 1.4 million dispute representments. Cardholder Dispute Resolution “Network (CDRN)” the first service in the RESOLVE solution, has reduced the time for dispute resolution from 45 days to 72 hours. Verifi’s newest RESOLVE solution, RDR, further reduces the 72-hour timeframe down to one second, providing fully automated review and resolution.*
Verifi is constantly striving to deliver solutions that provide value for its diverse range of clients. Currently, Verifi’s Order Insight®, which shares detailed transaction data with issuers and cardholders to validate sales and prevent disputes, has 99% global coverage with Visa issuers, and is active in 174 countries. RDR which just launched at the end of 2020, has been activated by more than 70% of Visa issuers globally, with seller participating growing*. Both Order Insight and RDR require collaboration from sellers, acquirers, and issuers. Luckily, all stakeholder are interested in keeping their customer satisfied and reducing unnecessary disputes from the payments ecosystem, so global seller adoption is expected to grow rapidly over the coming years.
*Source for all performance and product statistics: Verifi Internal Reporting, 2021
1 – The Chargeback Triangle, Javelin Strategy & Research, 2018