VERIFI Cardholder Dispute Resolution Network(CDRN)
Verifi Card Dispute Resolution Network (CDRN)

Challenges in Fraud Prevention

The credit card system was built long ago for a business model that has evolved and changed numerous times whereas the card systems and worse still, the dispute process, hasn’t changed much at all. CDRN was one of the first tools to jump in and try to help the system change for the better.

A big challenge in our ecosystem is handling Chargebacks between receiving them, responding to them and figuring out what to do all in a scalable format … can be a huge undertaking due to the antiquated systems involved. Plus, keep in mind that if you represent a chargeback and win it DOES still count against you in your chargeback rates.

Verifi CDRN helps to solve this issue…

Understanding Verifi CDRN

Verifi CDRN is a private network of credit card issuing banks that integrate with Verifi to provide a notice of pending chargeback.  Once the bank let’s Verifi know, then if the merchant of that transaction is enrolled in Verifi’s system, they will let them know so that they can resolve the situation.  As long as the merchant responds within 3 days, there will be no chargeback.

This changes the game for some merchants.  First, if the merchant resolves the dispute in the 3 day window then the issuer never actually presses that chargeback button, thus it does NOT count against the merchant in their chargeback rates.  Second, there are APIs for all this so it can be automated.

Benefits for merchants

  1. Reduced Chargeback Count / Percentage: By leveraging CDRN the dispute never enters the chargeback process and thus, assuming the merchant resolves the dispute, by refunding in many cases, then it is not a chargeback.  So you’ve removed a number from the numerator of the equation.
  1. Lower Fraud Rates: The CDRN system, in many cases, also does not mark the transaction as Fraud so the card brands never know there was a dispute and thus this also lowers your fraud rates.  We’ve seen, over the years, the vast majority of CDRN cases not be flagged so it tends to rapidly lower fraud rates are well.
  1. No filtering of accepted sales: One big conplaint and worry many merchants have when adding a pre-authroziation fraud system is that they will deny too many transactions which lowers their conversion rates and can also insult good customers.  With CDRN (and our whole line of post auth products) there is no impact to the sales process since these services are only enacted when a consumer calls to complain about a transaction.
  1. Rapid Results: Although we still suggest and are happy to help you figure out why you’re seeing a high rate of disputes, one big benetfit of CDRN is that it can go live in as little as 24 hours.  Once enrolled, the setup gets updated over the next 24 hours and you start getting alerts.  So that means in less than a day you will be recieving less chargebacks and thus start seeing your chargeback rates drop!
  1. No technical work: The biggest hold up with many system is the merchant getting engineering resources.  This one takes zero!  LIterally!  You sign up, we turn on your account and the results come in.  In some cases, our systems, at Fraud Deflect, will even do the refunds, comments, and even blacklisting for you in your CRM or gateway.  Worst case you need to login to our User Interface and manually do refunds in your system, but once again, zero technical work is required.


Verifi CDRN can be a game changing product for many merchants.  It is an automatable process that can start changing your chargeback and fraud rates overnight.  Even if you’re not worried about your chargeback rates, its valuable because you can fully automate the dispute hanlding process with little to no engineering time.  So if you want an easy to use service that helps you solve one of most merchants biggest problems give us a call.

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