RDR
Rapid Dispute Resolution
RDR (Rapid Dispute Resolution) is a card scheme program that lets the issuing bank return a disputed amount as a refund before the transaction turns into a full chargeback.
What is RDR (Rapid Dispute Resolution)?
RDR (Rapid Dispute Resolution) is a pre-dispute resolution program offered by card networks, primarily Visa. The disputed transaction is returned to the customer automatically, as a refund, and does not go through the standard chargeback process.
## How it works
The customer contacts the issuing bank about a charge. The issuer checks whether the transaction meets the program's conditions: transaction type, amount, region, and any previous disputes. If the conditions are met, the refund is processed through the network, and the merchant receives a notification of the refund instead of an open dispute.
## What changes for the merchant
The dispute is closed without the usual chargeback cycle, so there is no need to gather evidence or respond within standard deadlines. The amount still goes back to the customer, and the product or service is not recovered. Acquirer fees and refund-related charges depend on the contract and may vary, so they should be clarified in advance.
## Where it appears in high-risk verticals
In fintech and payments, RDR reduces the operational workload of handling disputes. In nutra, it is often applied to subscriptions and recurring charges, where customers dispute a renewal. In dating, a typical scenario is disputed charges after a trial period or premium subscription that the customer did not consider authorized.
## Common mistakes
Treating RDR as a full replacement for dispute handling: the program does not remove the causes of disputes. Not reconciling refunds with acquirer reports or breaking them down by offers and creatives. Not checking whether a specific acquirer and region participate in the program. Ignoring a rising refund rate because it looks milder than chargebacks.
## What it affects
FAQ
Is RDR the same as a chargeback?
No. With RDR, the transaction is returned automatically as a refund, and the dispute does not go through the full chargeback cycle with evidence. The amount is still returned to the customer.
Does RDR protect the merchant from a rise in disputes?
No. The program changes how disputes are resolved, but the reasons for refunds and complaints remain. They need to be analyzed separately, by offer and traffic source.
How can I tell whether RDR applies to my transactions?
Check with your acquirer or payment provider whether they participate in the program, which regions, transaction types, and amounts the rules cover, and which fees apply.