Why RDR Alerts Result in 'Lost Chargebacks'

Summary:

RDR alerts may appear as "dispute lost" in your payment processor. But they don't count towards your dispute rate.

Because of this, they won’t cause any problems with your payment processor. You won’t have to worry about holds, fines, or shutdowns due to RDR alerts.

Some RDR alerts will appear to contribute toward your chargeback rate, but they do not. For instance, we reached out to Adyen, a major payment processor, who confirmed that since Verifi is handled by a third-party, rates are outside their reporting view.

Here's the email we received:

 

This same situation applies to Shopify and Stripe. We reached out to their chargeback specialists and got confirmation that these indeed won't contribute to your chargeback rate.

See the screenshots below.

---

How RDR Alerts Look on Stripe

This is what an RDR dispute looks like on Stripe:

 

For the first few days, the RDR dispute will show up in your dispute activity. After that, it’s removed from the percentage calculation.

In other words, it never impacts your chargeback-related metrics like the Visa Acquirer Monitoring Program (VAMP).

From Stripe support:

 

You can make it so resolved RDR alerts won't appear to count as a 'Dispute Lost' for the first couple days. This requires you to reach out to Stripe and ask them to activate what's called dispute_network_token.

We contacted a Stripe specialist and asked them if a disabled dispute_network_token is why chargebacks appear to contribute to chargeback rates, they said no.

Thus, the dispute_network_token is unnecessary to activate, but the option is available.

---

What RDR Alerts Look Like on Shopify Payments

On Shopify, this is how RDR chargebacks look:

 

This one will also show up as “Dispute Lost” but will also not count towards your dispute rate.

So, this "chargeback" won't lead to holds or shutdown from Shopify Payments.

From Shopify support:

 

---