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Dispute resolution network integration

Pega Smart Dispute for Issuers can integrate with Ethoca Alerts and Verifi Cardholder Dispute Resolution Network (CDRN) to redirect cardholder disputes from the bank to Ethoca or Verifi for assessment, potential dispute resolution, and chargeback prevention.

The issuer must have agreements in place with either Ethoca or Verifi, or both. If the issuer does not have agreements in place and wants to use this functionality, instruct them to contact Ethoca or Verifi directly.

If multiple networks are enabled, Pega Smart Dispute for Issuers can be configured to evaluate the preferred third-party network for merchant eligibility by evaluating the dispute resolution order of priority.

When a consumer reports a billing problem to the issuer, the issuer raises a chargeback claim. Pega Smart Dispute for Issuers determines if the transaction that is being disputed applies to an Ethoca Alerts- or a Verifi CDRN-participating merchant, and then submits the information either to Ethoca or Verifi as a case.

The appropriate third-party product receives the case information, checks for eligibility, and notifies the merchant. The merchant, or the partner operating on behalf of the merchant, resolves the case, and then notifies Ethoca Alerts or Verifi CDRN about the actions that were taken to resolve the cardholder dispute. Pega Smart Dispute for Issuers polls Ethoca Alerts or Verifi CDRN for the case resolution information, evaluates the outcome, and takes the necessary actions to close the consumer-initiated dispute.

If the dispute is resolved in the consumer’s favor and a refund is given, Pega Smart Dispute for Issuers starts to monitor the issuer system of record to make sure that the corresponding credit transaction has been received within the permitted SLA window. In a situation where no refund has been received and the SLA period has been exceeded, the workflow makes the dispute case available for user review and, if applicable, for the subsequent submission to the card scheme.

Depending on local laws, a provisional credit might need to be given to the cardholder while the dispute is being reviewed by the merchant. Therefore, consideration should be given on how to handle the reversal of the provisional credit if the merchant issues a refund to resolve the dispute. Otherwise, the cardholder benefits both from the provisional credit and the refund from the merchant.

For an overview of the Ethoca Alerts and Verifi CDRN integration components that are available in Pega Smart Dispute for Issuers, see the following articles:

For more information about configuring the integration with Ethoca Alerts and Verifi CDRN with Pega Smart Dispute for Issuers, see “Configuring integration for dispute resolution” in the Pega Smart Dispute for Issuers Implementation Guide on the Pega Smart Dispute for Issuers product page.


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