Introducing Verifi RDR Decision API (beta): Smarter, faster dispute resolution for merchants

When it comes to payment disputes, time is money. Efficient dispute resolution isn’t just a back-office improvement—it’s a competitive advantage. Every unresolved dispute eats away at revenue, ramps up operational costs, and strains customer relationships. 

This is why we are excited to introduce the Verifi RDR Decision API, an innovative dispute resolution tool that helps merchants handle disputes instantly and automatically—without manual intervention. This solution is currently in beta, allowing early adopters to experience the benefits of real-time dispute management before full-scale rollout.

What is the Verifi RDR Decision API?

Visa’s Rapid Dispute Resolution (RDR) program was launched in 2021 and dramatically changed the dispute management process. However, it had some limitations and lacked flexibility. Before Decision API, the resolution process relied on pre-set rules applied to all MID traffic. Rule changes were made with a delay, and the rules were limited. Now, it has changed. 

The Decision RDR API is an advanced tool that enables merchants to participate in Visa’s Rapid Dispute Resolution program, making it easy to plug RDR into your existing workflows. It also offers more flexibility and agility in setting and enforcing dispute rules.

How it works

1. Instant alerts & action: As soon as a cardholder initiates a dispute, Visa’s system notifies Solidgate in real time.
2. Automated decisioning: Based on preset merchant rules, the API automatically determines whether to accept or decline the dispute.
3. Immediate resolution: If accepted, the refund is issued instantly—preventing a chargeback from ever happening.
4. No impact on the chargeback ratio: Since these disputes are resolved before they escalate, they do not count against the merchant’s chargeback rate.

Here’s how you can visualize this process:

Decision outcomes

The RDR Decision API determines the outcome of each dispute based on merchant-defined rules:

Before vs. after adopting RDR

The traditional dispute process is slow, costly, and reactive. Without RDR, merchants handle Visa disputes reactively:

• Delayed notifications: The first sign of a dispute often comes when a chargeback is filed or when you receive an alert from a service like Verifi’s CDRN or Ethoca.
• High operational costs: Chargebacks require manual review, evidence gathering, and fees.
• Risk to payment stability: High chargeback ratios can lead to penalties or placement in monitoring programs like VAMP.

By integrating Solidgate’s Verifi RDR Decision API, merchants can take charge of dispute management in real-time with:

• Instant alerts: You receive pre-dispute notifications as soon as a cardholder raises an issue.
• Automated resolutions: If a dispute meets your preset criteria (e.g., low-value fraud claims), an instant refund is triggered—no chargeback occurs.
• No chargeback penalties: Since disputes are settled before escalation, they don’t count toward chargeback ratios.
• Customizable rules: You set refund conditions tailored to your business needs. For instance: “auto-refund any fraud dispute under $100” or “auto-refund non-fraud (customer service) disputes for orders not yet shipped.” If a dispute falls outside the rules, you can contest it. 

• Operational efficiency: Your customer support teams spend less time on back-and-forth with banks or paperwork, and finance teams see fewer surprise chargeback deductions.

Why RDR adoption is growing

The payments industry is rapidly moving toward automation and real-time resolution to handle increasing dispute volumes. Since 2019, the number of disputes processed by Visa has jumped up to 50%, which is in line with the growing number of transactions. While disputes remain a small fraction of total transactions, their operational costs push the industry to find more efficient solutions.

The key drivers are: 

• Widespread issuer adoption: Visa and Verifi have scaled RDR globally, with Visa issuers supporting it worldwide.
• Merchant success stories: Once businesses implement RDR rules, most disputes are settled instantly, with merchants seeing chargeback ratios drop by up to ~99% within a year.
• A broader industry shift: Visa isn’t alone—other networks are following suit. Mastercard’s Mastercom Collaboration also provides early dispute alerts and automated refunds. These parallel systems reflect a clear trend: automated dispute resolution is becoming the norm, not the exception.

The future of dispute resolution with Decision RDR API

Dispute management is changing. With real-time automation, smarter decisioning, and proactive chargeback prevention, Solidgate’s Verifi RDR Decision API is a game-changer for merchants looking to:

• Save time: No more endless back-and-forth with banks—disputes are handled instantly.
• Cut costs: Save $20–$50 dispute processing fee per case and avoid operational slowdowns.
• Stay out of VAMP: Reduce chargeback rates on Visa and avoid being flagged in Visa’s Acquirer Monitoring Program.
• Enhance customer experience: Customers get quick resolutions, boosting satisfaction and loyalty.

This powerful tool is currently in beta, giving early adopters the opportunity to test its full capabilities and influence future refinements.

If you’re looking to stay ahead of the game in dispute management, contact your Solidgate account manager to learn more about the beta program and how you can start using the Verifi RDR Decision API today.

Not a Solidgate merchant? Book a call with one of our experts to discuss how we can help you scale your payments!