How CDRN works
A cardholder contacts a participating issuer about a charge. Instead of raising a chargeback at once, the issuer passes the case to Verifi, which routes it to the enrolled merchant, usually through the merchant's gateway or a dispute management tool.
The merchant decides case by case: credit the cardholder within the 72 hours, or let the dispute go ahead and answer the chargeback later. Verifi describes CDRN as resolving disputes on Visa and non-Visa transactions.
Why CDRN matters to a merchant or a PSP
A case refunded through CDRN costs the merchant the sale and the fee for the alert, but no chargeback is recorded. Verifi states that disputes resolved before a chargeback do not count against Visa's dispute ratio, the figure that puts a merchant into a monitoring programme.
Coverage depends on which issuers take part, so CDRN reduces chargebacks without removing them. A PSP or gateway that offers CDRN delivers each case to the merchant and returns the answer in time, since an unanswered case simply becomes a chargeback.
CDRN, RDR or Ethoca alerts?
- Rapid Dispute Resolution (RDR)
- Also from Verifi, for Visa disputes. RDR credits the cardholder automatically under rules the merchant set in advance, where CDRN asks the merchant to decide each case.
- Ethoca alerts
- A similar alert network run by Ethoca, a Mastercard company. Merchants often use both, because the two reach different issuers.
Where the Cardholder Dispute Resolution Network (CDRN) shows up in a platform
Modules that do the work
- Card acquiringCard acceptance on the phone, in store and online, through the acquirer you choose.
- Fraud & riskReal-time fraud scoring, limits and case management, with the risk engines you already trust.
- BackofficeOne console to run the platform: customers, money, risk, content and staff permissions.
Platforms that need it
Where it is written
The laws and standards this page's facts come from.
General information, not legal advice: what applies to you depends on your services and your market.