Best for
- Merchants in VDMP / ECP needing fast ratio remediation
- Subscription and continuity merchants with structural renewal disputes
- Card-not-present verticals (nutra, adult, gambling, travel) with elevated baselines
- High-volume merchants where 0.5% chargeback reduction = meaningful revenue
How it works
Chargebacks happen in two phases. Pre-dispute: the customer calls the issuer and says "I don't recognize this charge." The issuer can refund the transaction at that moment (Ethoca alert) or trigger an automatic refund per merchant rules (Verifi RDR). If neither resolves the inquiry, it becomes a formal chargeback — the dispute phase — and you respond with compelling evidence.
The best chargeback program kills disputes in the pre-dispute phase. RDR alone resolves 15–35% of disputes pre-chargeback; combined with descriptor optimization and 3DS2 on fraud-flagged BINs, a properly configured program drops chargeback ratios 40–70% in the first 60 days. For merchants in or near VDMP (Visa Dispute Monitoring Program) or ECP (Excessive Chargeback Program), this is the difference between staying live and termination.
What's included
Automatic refunds at the issuer level before the dispute becomes a chargeback. Resolves 15–35% of would-be chargebacks.
Real-time issuer notifications when a customer initiates a dispute. Refund within 24 hours to deflect the chargeback.
EMV 3-D Secure 2.0 step-up authentication on fraud-flagged transactions. Shifts liability to the issuer.
Recognizable billing descriptors (with phone + URL) reduce 'I don't recognize this charge' inquiries 20–40%.
AVS, CVV, velocity, BIN-blocking, geo-blocking, and device fingerprinting at the gateway.
Structured response workflows with compelling-evidence templates per reason code.
Pricing
Alerts run $0.30 – $0.50 per alert. 3DS2 is typically pass-through. Dispute response is included on managed accounts; standalone response services run $25 – $50 per dispute.