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Chargeback Management Vendors

Prerequisites

Before evaluating vendors, understand:

TL;DR
  • Three main categories: alert providers (prevent chargebacks), representment services (recover), automation platforms (both)
  • For Visa/Mastercard rails: Ethoca and Verifi are the only first-party alert networks. Most other providers resell or aggregate those rails.
  • RDR automates, CDRN/Ethoca require action: RDR auto-refunds based on rules; CDRN/Ethoca need manual response within 24-72 hours
  • Reseller vs direct tradeoff: Resellers offer single dashboard but add cost; direct enrollment is cheaper at scale

Chargeback Vendor Categories​

The chargeback vendor market has distinct categories serving different points in the dispute lifecycle.

TypeWhat They DoKey PlayersTypical Pricing
Alert NetworksPre-dispute notification to prevent chargebacksEthoca (Mastercard), Verifi (Visa)$15–40/alert (reseller)
RepresentmentFight chargebacks with evidenceChargebacks911, Midigator, Justt% of recovery or flat fee
Full-ServicePrevent + fight + analyzeChargeflow, Chargeback GurusHybrid pricing
GuaranteeAbsorb fraud chargeback liabilitySignifyd, Riskified, NoFraud% of approved GMV

Most merchants use alert services at minimum, and add representment and/or guarantee services based on fraud mix and volume. The right combination depends on your chargeback sources. Fraud-heavy merchants benefit more from guarantees; friendly-fraud-heavy merchants need representment. See setup dispute alerts playbook for implementation guidance.

Alert Networks​

Alert networks notify merchants of pending disputes before they become chargebacks, giving merchants the opportunity to refund proactively and avoid chargeback fees, ratio impact, and representment costs.

The Two Networks​

For Visa and Mastercard transactions, there are only two first-party alert networks:

  1. Verifi (owned by Visa since 2019)
  2. Ethoca (owned by Mastercard since 2019)

All other "chargeback alert" vendors are resellers, aggregators, or value-added services built on top of these two networks. This is important to understand when evaluating alert providers.

Verifi Products​

RDR (Rapid Dispute Resolution)​

RDR provides automated refunds based on merchant-defined rules.

How it works:

  • You set rules (e.g., "Auto-refund any dispute under $50")
  • When a dispute is initiated, rules are evaluated
  • Matching disputes are auto-refunded before chargeback is filed
  • No manual intervention required once rules are set

Key characteristics:

  • Visa only
  • Global coverage
  • Automated: set rules and forget
  • Visa's preferred/modern approach
  • Prevents chargeback from being filed entirely

Best for: High-volume merchants wanting automation

CDRN (Cardholder Dispute Resolution Network)​

CDRN is a manual alert system with a typical 72-hour response window.

How it works:

  • Merchant receives notification of pending dispute
  • Merchant has approximately 72 hours to respond
  • Merchant must manually process refund if desired
  • If refunded, chargeback is not filed

Key characteristics:

  • Covers Visa and some Discover transactions
  • Primarily US-focused coverage
  • Manual process
  • Being supplanted by RDR for many use cases

Best for: Merchants wanting review before refund

Order Insight​

Order Insight provides transaction details to issuers, helping cardholders recognize legitimate charges. Works with descriptors to reduce confusion.

Key characteristics:

  • Integrates with issuer customer service systems
  • Reduces "I don't recognize this charge" disputes (see friendly fraud)
  • Preventive rather than reactive
  • Often free or low-cost
  • See prevention hierarchy for where this fits

Ethoca Products​

Ethoca Alerts​

Ethoca Alerts provide pre-dispute notification to merchants with global coverage.

How it works:

  • Cardholder initiates dispute with issuer
  • If issuer participates in Ethoca, alert is sent
  • Merchant has 24-72 hours to respond (varies by issuer)
  • Merchant must manually process refund

Key characteristics:

  • Mastercard primary, some Visa coverage
  • Global coverage, especially strong outside US (EU, Canada, Asia)
  • Manual process: merchant must act
  • Typical 24-72 hour response window

Best for: Non-US merchants, Mastercard-heavy volumes

Consumer Clarity​

Consumer Clarity provides transaction detail enrichment for issuers.

Key characteristics:

  • Merchant logos, itemized receipts, location data
  • Helps cardholders recognize legitimate charges
  • Reduces friendly fraud from non-recognition
  • Integrates with issuer customer service

Fraud Insights​

Ethoca Fraud Insights provides analytics on fraud sources and patterns.

Key characteristics:

  • Helps identify root causes of chargebacks
  • Not an alert service, an analytical tool
  • Useful for fraud prevention strategy

Coverage Comparison​

FeatureRDRCDRNEthoca Alerts
Card NetworksVisa onlyVisa, some DiscoverMastercard, some Visa
Geographic ReachGlobalUS-focusedGlobal (stronger outside US)
ProcessAutomatedManual (typical 72h window)Manual (typical 24-72h window)
Best ForHigh-volume, automationUS Visa merchantsNon-US, Mastercard-heavy

Pricing​

Alert Pricing

Typical reseller pricing is on the order of $15–$40 per alert or prevented dispute, with exact rates depending on volume, channel, and provider. RDR tends to be less expensive than CDRN/Ethoca alerts. Direct network pricing is contract-specific and not publicly disclosed. Get quotes from multiple resellers and ask about volume tiers.

Reseller vs Direct​

Reseller Approach​

Pros:

  • Single dashboard for both networks
  • Consolidated billing
  • Often simplified onboarding
  • Value-added analytics and reporting

Cons:

  • Added margin on alert fees
  • One more vendor relationship

Examples: Chargeflow, Chargeback, Chargeblast, Midigator

Direct Enrollment​

Pros:

  • Potentially lower per-alert cost at scale
  • Direct relationship with networks
  • No reseller markup

Cons:

  • Separate platforms for Verifi and Ethoca
  • More operational overhead
  • May require higher volumes to justify

Recommendation: Start with a reseller for simplicity. As volume grows and you have dedicated chargeback resources, evaluate direct enrollment ROI.

Representment Services​

Representment services help merchants fight chargebacks by compiling evidence and managing the dispute process. Win rates vary significantly by reason code and evidence quality.

Key Players​

Chargebacks911​

Chargebacks911 offers a full-service approach combining managed services and software.

Key strengths:

  • Intelligent Source Detection for root cause analysis
  • Uses Compelling Evidence 3.0 (CE 3.0) for Visa disputes
  • Human + technology hybrid model
  • Strong for high-risk verticals (supplements, nutraceuticals, subscription, dating)

Pricing model: Managed services model (higher cost)

Note: Has faced FTC scrutiny in past. Verify current practices.

Midigator​

Midigator is an analytics-focused platform with self-service and managed options.

Key strengths:

  • Claims 65-80% win rate on disputes
  • Real-time chargeback insights and reporting
  • Strong root cause identification
  • Good for merchants wanting data and control

Chargeflow​

Chargeflow uses AI-driven evidence compilation with a pay-for-success model.

Key strengths:

  • Claims ~80% win rate
  • Pay-for-success pricing (25% of recovered value)
  • Human review before submission
  • Focuses on recovery, less on prevention

Best for: Merchants wanting outcome-based pricing

Justt​

Justt is an automated dispute resolution platform with customizable dispute arguments.

Key strengths:

  • Data enrichment for representments
  • Customizable logic
  • Founded 2020, growing presence

Chargeback Gurus​

Chargeback Gurus offers full prevention + representment services.

Key strengths:

  • Strong in travel, hospitality, subscription verticals
  • Dedicated analyst model
  • Founded 2014, McKinney TX

What to Ask Representment Vendors​

  • What's your win rate by reason code (not just overall)?
  • How do you calculate win rate (recovered $ vs. cases won)?
  • What evidence sources do you integrate with?
  • Do you handle all reason codes or specialize?
  • What's your fee structure (flat, percentage, hybrid)?
  • How long until I see results?

Chargeback Guarantee Providers​

Guarantee providers shift fraud chargeback liability from merchant to vendor. If the vendor approves a transaction that results in a fraud chargeback, the vendor reimburses the merchant.

How Guarantees Work​

  1. Transaction submitted to guarantee provider
  2. Provider returns Approve/Decline decision
  3. Merchant ships only approved orders
  4. If approved order results in fraud chargeback, provider reimburses merchant

Important: Guarantees typically cover only fraud chargebacks, not:

  • Friendly fraud / first-party fraud
  • Product not received (unless proven delivery)
  • Product not as described
  • Subscription billing disputes

Key Players​

Signifyd​

Key strengths:

  • 100% financial guarantee on approved orders
  • Enterprise retail focus
  • Return Abuse Prevention product
  • Payment Optimization products

Pricing: Performance-based (% of approved GMV)

Riskified​

Key strengths:

  • Chargeback guarantee + Dispute Resolve (representment)
  • Strong account management reputation
  • Auth Rate Enhance (helps improve bank authorization rates)

Pricing: Performance-based tied to approved GMV

NoFraud​

Key strengths:

  • 100% financial guarantee
  • "Pay only for orders we approve" model
  • Fast integration (app install or API)
  • Subscription fraud protection add-on

Best for: SMB merchants

ClearSale​

Key strengths:

  • Guaranteed fraud protection
  • Strong presence in Latin America
  • Multilingual support

Best for: Cross-border merchants

Guarantee Provider Comparison

Both Signifyd and Riskified are highly rated for fraud detection and support on review sites like G2. Signifyd tends to be preferred for large-enterprise retail use cases, while Riskified is often noted for strong account management. Ratings change over time. Verify current standing during evaluation.

Issuer-Specific Considerations​

Issuers are on the receiving end of disputes, not the sending end. The chargeback vendor landscape looks different from the issuer perspective.

Issuer Focus Areas​

Reducing Inbound Disputes​

  • Consumer Clarity / Order Insight enrollment reduces "unrecognized charge" disputes
  • Better transaction descriptors help cardholders recognize charges
  • Real-time alerts to cardholders about suspicious transactions

Alert Network Participation​

  • Issuers receive (not send) Ethoca/Verifi alerts
  • Enrollment improves merchant relationships
  • May reduce cardholder friction vs. immediate chargeback

Important Note on TC40/SAFE​

Even when alerts prevent chargebacks, fraud reports (TC40 for Visa, SAFE for Mastercard) may still be filed.

  • These feed into VAMP (Visa Acquirer Monitoring Program) and similar monitoring
  • Alert resolution ≠ fraud report suppression
  • Relevant for merchants monitoring their network ratios

Case Management Integration​

  • Integrate alert data into existing fraud case management
  • Track alert-to-chargeback conversion rates
  • Use alert patterns to identify fraud trends

Building Your Chargeback Stack​

The right combination of vendors depends on your transaction volume, fraud mix, and operational capacity.

Minimum Viable Approach​

  • RDR (Visa automation) + Ethoca Alerts (Mastercard) via single reseller
  • Covers both major networks with manageable complexity
  • Good starting point for most merchants

Full-Stack Approach​

  • RDR + CDRN + Ethoca for maximum pre-dispute coverage
  • Representment service for disputes that slip through
  • Analytics platform for root cause identification
  • Consider guarantee provider if fraud losses are significant

ROI Calculation Framework​

Alert ROI:

Alert cost: ~$15-40 per alert
Chargeback cost avoided: 2-3x transaction value 
  (merchandise + fee + operational cost + ratio impact)
Break-even: If alerts prevent chargebacks, ROI is typically positive

Representment ROI:

Cost: % of recovery or flat fee
Recovery: Average chargeback value × win rate
Break-even: If (recovery × win rate) > cost, ROI is positive

Guarantee ROI:

Cost: % of approved GMV
Value: Fraud loss elimination + operational savings
Break-even: If fraud rate × AOV > guarantee cost, ROI is positive

Questions to Ask Chargeback Vendors​

Alert Providers​

  • What's your coverage overlap with my card network mix?
  • How do you handle duplicate alerts across networks?
  • What's the SLA for alert delivery and response window?
  • How do you measure and report prevented chargebacks?
  • What integration options exist (API, processor, platform)?

Representment Services​

  • What's your win rate by reason code?
  • How do you define "win" (cases or dollars)?
  • What evidence sources do you integrate with?
  • What's your average time to resolution?
  • Do you handle all networks/reason codes?

Guarantee Providers​

  • Exactly what chargeback types are covered?
  • What's excluded from the guarantee?
  • What's the claims process?
  • How quickly are reimbursements paid?
  • What happens if my fraud rate spikes? Can you terminate?
Red Flags
  • Unclear coverage percentages
  • No transparency on alert sources (are they reselling or direct?)
  • Excessive volume minimums for your transaction count
  • No dispute-level reporting
  • Vague guarantee exclusions
  • High-pressure annual commitment for unproven service

Next Steps​

Setting up alert services?

  1. Understand the two networks - Verifi and Ethoca
  2. Compare coverage - RDR vs CDRN vs Ethoca
  3. Choose reseller vs direct - Start with reseller

Evaluating representment services?

  1. Review key players - Chargebacks911, Midigator, Chargeflow
  2. Ask the right questions - Win rate by reason code
  3. Calculate ROI - Recovery vs cost

Considering chargeback guarantees?

  1. Understand how guarantees work - What's covered
  2. Compare providers - Signifyd, Riskified, NoFraud
  3. Calculate ROI - Fraud rate vs cost

See Also​