Advanced RDR Management Through Verifi API

What Is Rapid Dispute Resolution (RDR) via Verifi?

Rapid Dispute Resolution (RDR) via Verifi is a pre-dispute solution that allows merchants to automatically resolve transaction issues before they escalate into chargebacks. Through partnerships with card networks like Visa, RDR enables merchants to issue refunds in real time when certain criteria are met, preventing disputes from impacting chargeback ratios or incurring associated fees. This automated process is designed to reduce operational costs, improve customer satisfaction, and maintain cleaner processing records. RDR is especially valuable for merchants who handle high volumes of transactions and want to mitigate chargeback risk proactively.

What Is the Merchant‑Hosted Decision API?

The Merchant Hosted Decision API is a powerful feature offered by Verifi that allows merchants to make real-time decisions on Rapid Dispute Resolution (RDR) cases using their own internal data and business logic. Instead of relying on Verifi’s default rules engine, merchants can host their own endpoint to receive RDR decision requests and respond within a strict service level agreement, currently set at three seconds. This setup enables more accurate and context-aware dispute handling, giving businesses greater control and flexibility in how they respond to potential disputes. The API supports rich transaction data, allowing merchants to factor in variables like location, bank, BIN level, card type, or transaction amount before deciding whether to accept or decline a case.

According to Verifi’s FAQ and official documentation, advanced RDR management through Verifi API works the following way:

• You can replace Verifi-hosted rules with your own decision engine. Every RDR case includes up to 29 transaction metadata attributes plus merchant‑specific data (e.g., location, transaction amount, card type, etc.).
• The merchant or reseller responds to each RDR decision request within a strict SLA initially 2 seconds, recently extended to 3 seconds as of March 2025.
• If a merchant fails to respond in time, the case is automatically declined (Status Code 910) and flagged as closed.
• Both direct clients and resellers can implement the Decision API. Configuration occurs at the client level, meaning each merchant under a reseller can choose API-based decision-making or Verifi rules independently.
• Pricing per RDR case is the same whether processed by Verifi-hosted rules or the merchant’s own decision logic.

All in all, this functionality is designed for high-volume, low-risk merchants who want to incorporate rich in‑house data into real-time dispute resolution logic, or who prefer full control over case decisions.

Advanced RDR Management Scenarios

There are several ways merchants can use API for advanced dispute management, so let us take a brief look at the most popular scenarios.

By understanding and preparing for complex RDR cases, businesses can efficiently prevent all types of chargebacks and maintain greater control over their dispute resolution strategy.

Key Benefits of Merchant‑Hosted Decision API

The Merchant Hosted Decision API offers several compelling benefits for businesses looking to take greater control over dispute resolution. By using this API, merchants can optimize how they handle Rapid Dispute Resolution (RDR) cases and improve overall operational efficiency. Key benefits include:

• Full control over decision-making, allowing merchants to apply their own rules and logic based on real-time transaction and customer data
• Faster and more accurate resolution of disputes, reducing the likelihood of unnecessary refunds or chargebacks
• Enhanced flexibility to adapt decision logic quickly without relying on third-party system updates
• Consistent pricing per RDR case, whether decisions are made via Verifi’s hosted rules or the merchant’s own API
• Improved customer experience by resolving issues promptly and based on more complete information
• The ability for resellers to configure API-based decision-making uniquely for each client, supporting a wide range of business needs

These advantages make the Merchant Hosted Decision API a smart choice for merchants who process high volumes of transactions and seek a proactive, customized approach to dispute management.

When Should You Use Advanced RDR via Decision API?

Advanced RDR via the Merchant Hosted Decision API is ideal for businesses that want to take a proactive and highly customized approach to managing disputes. It is especially useful in situations where speed, control, and data-driven decisions are essential. You should consider using the Decision API when:

• You process a high volume of transactions and need scalable, automated dispute resolution
• You have access to real-time internal data, such as delivery status, refund history, or customer behavior, that can inform dispute decisions
• You want full control over how disputes are handled rather than relying on preset rules from Verifi
• You require flexibility to change decision logic quickly in response to new fraud patterns, customer policies, or business priorities
• You are a reseller managing multiple merchants, each with unique dispute handling strategies

Adopting the Decision API allows businesses to minimize chargeback exposure while tailoring dispute responses to match their specific operational and risk management goals.

What to Consider or Prepare

Before implementing the Merchant Hosted Decision API for Advanced RDR Management, there are several important factors to consider and prepare for to ensure a successful integration. Key points to keep in mind include:

1. You must build and maintain a reliable API endpoint capable of receiving and responding to RDR decision requests within the required three-second timeframe, or just integrate a ready-to-use solution from MidArmor.
2. Ensure your internal systems can access and process all relevant transaction data in real time to support accurate decision-making.
3. Develop robust monitoring and alerting tools to track API performance and quickly address timeouts or failures.
4. Understand that any decision not returned within the SLA will result in an automatic decline of the case.
5. Plan for infrastructure scalability, especially if your business handles high volumes of disputes.
6. Collaborate closely with your fraud, payments, and technical teams to design logic that aligns with your risk strategy and customer service goals.

Preparing these elements in advance will help maximize the effectiveness of your RDR decision process and reduce the risk of operational disruptions.