CDRN (Cardholder Dispute Resolution Network)
explained.

How CDRN works

1. A cardholder calls a participating issuer to dispute a charge.
2. Instead of filing a chargeback right away, the issuer sends the case through Verifi to the merchant.
3. The merchant reviews it and, to resolve it, issues a refund. Verifi describes resolution "within 72 hours by seller-initiated refund".
4. The issuer closes the case without a chargeback. Verifi notes issuers avoid dispute submission fees by collaborating with sellers this way.

Verifi says CDRN resolves fraud and non-fraud disputes, and covers both Visa and non-Visa cases directed by participating sellers. Coverage depends on which issuers participate.

CDRN vs RDR

• Card coverage: RDR is Visa-only; CDRN covers Visa and other card brands at participating issuers.
• Decision: RDR resolves automatically on rules you set in advance; with CDRN you, or your provider, act on each case and refund within the window.
• Overlap: Verifi's RDR FAQ says both serve the same goal of resolving disputes at the pre-dispute stage. Many merchants use both, with RDR handling Visa automatically and CDRN covering the rest.

When CDRN makes sense

• You see disputes from banks that participate in CDRN but are not Visa cases RDR can cover.
• Your average order is small enough that refunding beats fighting.
• You have the operational speed (or automation) to refund inside the window every time.

A worked example

A meal-kit subscription receives a CDRN case: a cardholder at a participating bank disputes a $72 renewal, saying they cancelled. The merchant's records show a cancellation request two days before renewal that was not processed. The merchant refunds the $72 and cancels the subscription within the window. No chargeback is filed, no chargeback fee is charged, and the customer's complaint is resolved the same day.

Common mistakes

• Missing the window. A late refund does not stop the chargeback, and you may end up refunding and being charged back.
• Refunding without cancelling the subscription or shipment.
• Not tracking per-case fees. Alert providers charge per case; compare that with your chargeback fee and win rate before enrolling every case type.

How Verdikx helps

Verdikx is a fraud, chargeback and dispute platform for e-commerce and SaaS merchants, made by Verdikx LLC. CDRN alerts in Verdikx are coming soon; they are not live yet, along with Visa RDR and Mastercard Ethoca. Today, Verdikx's Prevention inbox on Growth and Pro handles Stripe early fraud warnings, with optional automatic refunds only when every condition you set matches (source, currency, amount limit, order linked and unfulfilled or digital, and a refund method available). For subscription merchants, Verdikx also pulls Recharge and Skio records (beta, Growth and Pro) into dispute evidence.