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Cardholder dispute resolution network (CDRN)

CDRN (Cardholder Dispute Resolution Network) is an early chargeback alert mechanism launched by Visa. When a cardholder disputes a transaction and submits a chargeback request to the issuing bank (including issuers under major card networks such as Visa, Mastercard, American Express, and JCB), the system sends an immediate alert to the merchant.

This allows merchants to proactively intervene before the dispute escalates into a formal chargeback, communicate with the cardholder, and resolve the issue quickly in order to effectively reduce chargeback rates, minimize financial losses, and ensure stable business operations.

Key features

  • Risk prevention & account stability: By intervening early in the dispute resolution process, CDRN can significantly reduce chargeback rates, mitigate card network compliance risks, and maintain long-term account stability.
  • Fast refund experience: Cardholders can receive refunds within days via the CDRN mechanism, greatly improving the shopping experience.
  • Enhanced control over dispute resolution: Merchants can engage directly with cardholders before a chargeback is formally initiated, strengthening control over the dispute resolution process.
  • Comprehensive multi-card network support: CDRN provides end-to-end dispute alert and resolution support, covering both Visa and non-Visa card networks such as Mastercard, American Express, JCB and Discover.

CDRN operation workflow

When a buyer initiates a chargeback, CDRN follows this process:

  1. Dispute Initiation: Buyer submits a chargeback request to the issuing bank.
  2. Merchant Verification: Issuing bank confirms merchant’s CDRN enrollment status.
  3. System Assessment: CDRN is triggered and prompts the merchant to make a refund decision.
  4. Based on the merchant’s decision, one of the following actions are initiated:
    • Accept refund: Triggers refund processing.
    • Do not accept refund: Routes to standard dispute resolution.
  1. Case Closure: Acquiring bank refunds the issuing bank, with funds returned to the buyer. Dispute resolved.

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To gain the ability to resolve disputes before they become chargebacks, take action by pre-configuring your CDRN settings.