What is Rapid Dispute Resolution (RDR) and Tazapay RDR Policy

Explore Tazapay's Rapid Dispute Resolution (RDR) Policy: Understand our mandatory, cost-effective approach to managing low-value transaction disputes, including INR (Item Not Received) and SNAD (Significantly Not as Described) cases.

What is RDR in the context of Tazapay?

  • Rapid Dispute Resolution (RDR): An automated system implemented by Tazapay to manage low-value transaction disputes efficiently.

What are INR and SNAD?

  • INR (Item Not Received): Refers to cases where the buyer claims they did not receive the purchased item.
  • SNAD (Significantly Not as Described): Involves situations where the received item significantly deviates from the seller's description.

What are the key aspects of Tazapay's RDR Policy?

  1. Mandatory for All Merchants:

    • RDR is compulsory for every merchant using Tazapay. It is not optional and cannot be selectively applied.
  2. Automatic Refund Thresholds:

    • Disputes involving amounts less than $200 for INR, SNAD and fraud cases are automatically refunded.
    • For fraud-related cases, the threshold for automatic refunds is less than $300.
  3. Charges per Alert:

    • A fixed charge of $15 is applied for each alert that falls under the RDR policy.
  4. Notification and Reporting
    Merchants will not receive individual email notifications for RDR cases. Instead, details of refunds processed under RDR will be available in their reconciliation reports, marked with the appropriate reason codes for transparency and record-keeping
  5. Benefits of RDR:

    • Cost-Effective: Without RDR, disputes would escalate and become chargebacks, incurring a higher cost of $15 per chargeback.
    • No Contest for Fraud: In fraud cases, Tazapay does not contest, making RDR a more viable option.
    • Maintains Chargeback Rate: Helps merchants keep their chargeback rate in check, benefitting their payment account health and reducing the risk of getting blocked

How does RDR benefit both merchants and customers?

  • For Merchants: RDR allows for the automatic handling of low-value disputes (INR and SNAD), which is more cost-effective compared to traditional dispute processes. This approach not only reduces the financial burden but also minimizes the risk of fines and losing the privilege of using the Tazapay payment system.
  • For Customers: Offers a quicker and more efficient resolution process for valid claims, enhancing customer satisfaction.