This article will guide merchants through understanding and using Chargeback Management Service with Verifi CDRN. This product and service are currently in pilot for select merchants.

The integration of the Cardholder Dispute Resolution Network (CDRN) with Authorize.net is designed to streamline the dispute resolution process for merchants.

The benefits of using the Cardholder Dispute Resolution Network (CDRN) are quite significant for merchants. Here are the key advantages:

• Dispute Prevention: CDRN allows merchants to resolve disputes before they escalate into chargebacks. This is achieved by providing merchants with the opportunity to issue refunds or resolve disputes within 72 hours of receiving a CDRN case.
• Cost Savings: By resolving disputes early, merchants can avoid the higher costs associated with chargebacks. CDRN cases are generally less expensive to handle compared to chargebacks.
• Simplified Process: The CDRN process is designed to be straightforward and easy to set up. Merchants only need to update their descriptors, and they can start using the system without the need for complex rule configurations.
• Improved Customer Satisfaction: By resolving disputes quickly and efficiently, merchants can enhance customer satisfaction and loyalty. Customers appreciate prompt resolutions to their issues, which can lead to better customer relationships.
• Reduced Risk of Business Termination: High chargeback ratios can lead to the termination of merchant accounts. By using CDRN to manage and reduce chargebacks, merchants can lower their risk of account termination.

These benefits make CDRN a valuable tool for merchants looking to manage disputes effectively and maintain a healthy business relationship with their payment processors.

Once you have been approved, you will see a banner in the Merchant Interface notifying that you have been approved for the service.

1. Sign into the Merchant Interface.
2. Click Sign Up now or Chargeback Management Service under Tools in the left navigation.
3. Review the service descriptions, agreement, and fees listed.
4. Check the agreement box and click I agree and Submit.

This will complete the initial sign-up, and the creation process for your Verifi CDRN account will start, which can take about five days to complete. You will also see on the completion page a link to the quick start guide for Verifi CDRN and a link to the portal/site. Once your account has been fully set up, you will receive an activation email to complete your account and first user setup.

How does CDRN work?

• CDRN Alert - When a cardholder calls the issuer to file a chargeback, the issuer is alerted that the transaction is for a merchant enrolled in CDRN. 
• Pre-dispute - Instead of the inquiry escalating to a dispute, Verifi routes a pre-dispute notification to the participating merchant.
• 72 hours - The merchant has 72-hours to decide how they would like to handle the pre-dispute.
• Refund - Merchants can proactively refund the pre-dispute to avoid a chargeback and make the cardholder satisfied.
• Chargeback flow - Or allow the dispute to follow the traditional chargeback flow, giving the merchant the opportunity to defend the charge and respond through their acquirer or processor to retain the funds. 
• Cancelled shipment - If goods have not yet been shipped, the CDRN notification also gives merchants the ability to stop shipment on goods the cardholder has already filed a dispute on.

For more detailed instructions, please see the Verifi CDRN Quick Start Guide and the Verifi CDRN Portal.

Verifi Video: https://vimeo.com/813636288

 

Blog: https://www.authorize.net/resources/blog/2024/proactively-resolve-chargeback-disputes.html