MerchantGuard™RDR Setup Guide: Stop Chargebacks Before They Happen
Rapid Dispute Resolution (RDR) prevents 70% of chargebacks by auto-refunding disputed transactions before they become chargebacks. Get +8 GuardScore points.
What is RDR?
Rapid Dispute Resolution (RDR) is a Visa/Mastercard program that automatically refunds customers when they dispute a charge, before it becomes a formal chargeback.
When a customer calls their bank to dispute a charge, instead of filing a chargeback, the bank checks if you're enrolled in RDR. If you are, the transaction is auto-refunded within seconds, and the dispute is closed.
Why You Need RDR
- Prevent account freezes:
Stripe freezes accounts at 0.65% CB rate. RDR keeps you under threshold.
- Save on fees:
Each chargeback costs $15-25. RDR refunds cost $0 in fees.
- Improve GuardScore:
Lower CB rate = higher score = better PSP approval odds.
How to Set Up RDR (Step-by-Step)
Sign up with Verifi or Ethoca
These are the two RDR providers. Verifi handles Visa, Ethoca handles Mastercard. Most merchants use both.
- • Verifi: verifi.com/rdr
- • Ethoca: ethoca.com/alerts
- • Cost: ~$0.20-0.50 per alert (cheaper than $15 chargeback fee)
Connect to your payment processor
Verifi/Ethoca integrate with Stripe, Braintree, Checkout.com, and most major PSPs.
- • Stripe: Enable in Dashboard → Settings → Chargeback Protection
- • Other PSPs: Contact Verifi/Ethoca for integration guide
- • Setup time: 24-48 hours for approval
Set refund rules
Configure which disputes get auto-refunded (recommended: all disputes under $100).
- • Conservative: Auto-refund disputes <$50
- • Balanced: Auto-refund disputes <$100 (recommended)
- • Aggressive: Auto-refund all disputes
Test and monitor
Wait for first alert, verify refund processes correctly, monitor CB rate drop.
70% CB reduction within 30 days. Monitor via Stripe Dashboard or RDR portal.
Cost vs. Benefit
Without RDR
- • 100 chargebacks/month
- • $15 fee × 100 = $1,500/mo
- • CB rate: 1.5% → Account freeze risk
- • Lost sales during freeze: $50K+
With RDR
- • 70 alerts auto-refunded
- • $0.40 fee × 70 = $28/mo
- • CB rate: 0.45% → Safe zone
- • Account stays active: Priceless
Plus avoided account freeze = ~$50K saved
Ready to Reduce Your Chargebacks?
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