Verifi’s Cardholder Dispute Resolution Network Passes Two Million Resolved Chargeback Cases in 2018
LOS ANGELES, CA – December 5, 2018 – With 2018 holiday sales in e-commerce expected to grow 15%1 to a new record, Verifi, Inc. today announced that its Cardholder Dispute Resolution Network™ (CDRN®) successfully resolved two million disputes, year to date, in 2018, on top of 76% growth in 2017. CDRN enables strong partnerships and collaboration between merchants and issuing banks to resolve fraud and non-fraud cardholder disputes, reducing dispute escalation and increasing profits for issuing banks and merchants.
The Stakes Are High
“With holiday sales expected to reach new highs, the risks rise dramatically this time of year for our bank partners and merchants,” said Mathew Katz, CEO of Verifi. Katz noted the phenomenon that he labels the “holiday hangover.” Following the rise of e-commerce sales, disputes and chargebacks rise in equal or greater proportion, leading to painful loss of profits earned in Q4. In previous years, Katz notes, the company has seen as much as a 30% increase in chargeback volume in the quarter directly following strong holiday sales.
Merchants and Issuers can prepare for the holiday hangover
CDRN enables direct collaboration between issuers and merchants on confirmed cardholder disputes. Merchants receive near real-time notifications of disputes from the issuer through the CDRN patented closed-loop solution, pausing the dispute process for up to 72 hours. This provides the merchant time to review and resolve dispute cases, preventing costly chargebacks for both parties and the possible loss of customers.
It’s a win for merchants and issuers
With unmatched dispute resolution rates of up to 90%, merchants win by resolving disputes before they become chargebacks, retaining hard-earned profits, protecting future revenue, and increasing customer loyalty. CDRN provides the highest quality, most accurate information, helping to avoid false positive chargeback alerts and over-refunding.
Issuers benefit by reduced dispute volume and consumer call time, reduced write-offs and operational expenses, and overall improved customer experience.
As a leading disruptor in the payments space, Verifi’s innovative solution Order Insight® extends the CDRN dispute resolution capabilities by deflecting disputes at cardholder inquiry to prevent escalation into chargebacks. Through Order Insight, Merchant transaction details are directed to the cardholder through issuer digital channels to help resolve billing confusion and reduce disputes. If a cardholder does contact the issuer, call center personnel can access the details of the purchase to quickly resolve confusion, validate the sale, or flag as true or first-party fraud. Order Insight helps issuers reduce dispute volume and internal liability costs, while merchants retain more revenue and profits, providing an improved customer experience for both. Adopters of Order Insight have reported up to a 55% dispute deflection rate, significantly higher than other solutions.
Founded in 2005, Verifi is an award-winning provider of end-to-end payment protection and risk management solutions. Verifi’s patented collaboration platform enables the sharing of near real-time data between cardholders, merchants, and issuers to resolve disputes, protect revenue, prevent fraud and stop chargebacks. Verifi’s services also help merchants fight and recover profits lost from unwarranted chargebacks, process payments securely, and optimize billings. Trusted by a wide range of businesses, from emerging companies to the Fortune 500, Verifi is headquartered in Los Angeles and serves over 27,000 accounts globally. For more information, visit: verifi.com.