What’s the Right Mix of Tools for Your Business?
When it comes to RDR, Ethoca Alerts and Verifi CDRN, it’s not always clear how they work together—or which ones are worth your time. Let’s break it down to help you build a smarter, more strategic approach to chargeback prevention.
1. RDR: Visa’s Rapid Dispute Resolution
Visa’s Rapid Dispute Resolution (RDR) lets you automatically refund low-risk disputes before they turn into chargebacks. It’s rule-based, so you can set it up to match your refund policies and risk appetite.
RDR Benefits:
- Reduces chargeback counts and ratios
- Skips manual reviews for low-value disputes
- Saves time by automating resolution
Heads up: RDR only works for Visa disputes—and only if the issuer participates. Also, Visa may still flag fraud reports (like TC40s), even if you refund. That can affect your standing in their fraud programs.
2. Ethoca Alerts: Mastercard’s Early Warning System
Ethoca Alerts notify you the moment a Mastercard issuer receives a dispute, giving you a chance to intervene before a chargeback is filed.
Ethoca Benefits:
- Real-time alerts for Mastercard disputes
- Opportunity to refund early and avoid chargebacks
- Preserves customer relationships
If your processes aren’t fast enough, refunding may not stop the chargeback from being recorded.
3. Verifi CDRN: The Missing Link for Visa and Mastercard
Verifi’s Cardholder Dispute Resolution Network (CDRN) gives you a second shot at resolving disputes. Originally, for Visa, it now covers some Mastercard disputes too.
CDRN Benefits:
- Adds coverage beyond Ethoca
- Supports more Visa issuers
- Short response window to refund before a chargeback hits
Sometimes, issuers use CDRN instead of Ethoca, and in many cases, the two tools share data. You may see the same alert in both systems.
4. Should You Use All Three?
The short answer: maybe. It depends on your business goals, dispute volume and internal capacity. The table below breaks down some general recommendations.
| Chargeback Scenario | Recommended Tool(s) |
| High dispute volumes | Use RDR + Ethoca + CDRN for full coverage and early resolution. |
| Limited resources | Start with RDR to automate low-risk Visa disputes. |
| Need Mastercard coverage | Ethoca is essential for near real-time Mastercard alerts. |
| Want More Visa coverage | Layers in CDRN to catch additional Visa disputes. |
A quick refund doesn’t always stop a chargeback from being recorded. Issuers may still send fraud reports (like TC40s), and Visa’s new VAMP program counts those against you, refund or not. Too many, and you could face penalties—even if you’re stopping chargebacks.
Start with a Strategy, Not Just Tools
Ethoca, CDRN, and RDR are only as powerful as the strategy behind them. Before you implement new tools, zoom out and examine what’s actually driving your disputes.
Are you dealing with fraud, delivery delays or just confused customers? Knowing the source is key because tools don’t fix broken processes.
Map your dispute resolution flow, for example:
- The sale happens
- A customer has a complaint or question
- Your support team gets involved (ideally)
- Fraud signals may be triggered (like a TC40)
- You get an alert from Ethoca or CDRN
- An RDR refund is issued (if applicable)
- If not resolved, a chargeback response is submitted
- You keep monitoring fraud and dispute ratios
When you map out your flow and identify weak points, you can intervene earlier and prevent disputes from escalating. Real chargeback prevention isn’t about refunds—it’s about getting ahead of the dispute.
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