The Cardholder Dispute Resolution Network® (CDRN) addresses the costly chargeback process for merchants.
In the traditional chargeback process, the cardholder will typically (86% of the time) bypass the merchant in favour of the issuing bank. By the time the merchant is made aware of the chargeback, it’s too late—the chargeback has occurred, and the opportunity to take immediate action to resolve the dispute is missed.
In contrast, CDRN acts as a direct bridge between the merchant, the issuer, and the consumer, to better assist the merchant in making an informed and smart dispute decision.
How does CDRN work?
- Generally, the customer bypasses the merchant and contacts the issuer to generate a billing charge or inquire about an unrecognised purchase
- The issuers system identifies the charge from a CDRN participating merchant and automatically redirects the dispute to Verifi for processing and resolution
- CDRN receives the dispute case data and distributes it to the merchant for evaluation
- Outcome is submitted back to CDRN
- CDRN receives the Merchant resolution and responds to the card issuer with the outcome of the case
- Issuer receives the response and notifies the cardholder of the resolution
With CDRN, notifications are real, customer-initiated dispute data, sourced directly from the issuing bank. These notifications are 60% faster than traditional chargebacks, and take no more than 72 hours to review and resolve. In essence, you avoid:
- Short resolution timeframes that create service defects and do not stop the chargeback
- Chargebacks from additional billings
- Additional fraud losses from pending fulfillment of goods and services
- Lost profits on sales worth disputing