Smart Dispute Resolution (SDR) allows non-MOR merchants to enable and manage Verifi RDR and Ethoca in Subotiz Payments, configure automatic refund rules, and manage dispute alerts. With appropriate dispute prevention rules, merchants can address eligible disputes before they escalate into formal chargebacks, helping reduce chargeback risk and dispute handling costs.
Note: For Subotiz MOR merchants, SDR is enabled and managed centrally by the Subotiz platform. MOR merchants cannot enable or modify these settings independently. To enable or modify SDR, contact dispute_resolution_support@subotiz.com. The self-service enablement and rule configuration steps in this article primarily apply to non-MOR merchants.
Accessing Smart Dispute Resolution
- Open the Dispute Prevention page: Log in to the Subotiz admin and go to Transactions > Disputed Orders > Dispute Prevention. The page displays the currently enabled Verifi RDR and Ethoca services and received dispute alerts.
Enabling Dispute Prevention Services
- Enable dispute prevention services: On the Dispute Prevention page, click Activate Now to open the service setup page. Select Rapid Dispute Resolution (RDR), Ethoca, or both, configure the corresponding refund rules based on your business needs, and submit the settings. Service activation may take up to one week to take effect.
Configuring Verifi RDR Refund Rules
Verifi RDR applies to Visa card transactions. Non-MOR merchants can configure automatic refund rules based on their business needs.
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Configure RDR refund rules: Select one of the following refund options:
- Set a refund threshold: The system automatically initiates a refund when the disputed transaction amount is below the configured threshold.
- Refund all: The system automatically initiates a refund for every eligible RDR dispute, regardless of the transaction amount.
Automatic refunds directly affect how funds are handled for the associated transactions. Before configuring refund rules, consider your average order value, dispute activity, and risk tolerance.
Configuring Ethoca Refund Rules
Ethoca supports Visa and Mastercard card transactions. Non-MOR merchants can apply the same refund rules to both card brands or configure separate rules for each.
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Configure Ethoca refund rules: Open Ethoca settings, configure the following options based on your business needs, and save your changes:
- Card brand rules: Enable Use the same rules for Visa and Mastercard to apply the same refund configuration to both card brands. Disable this option to configure Visa and Mastercard separately.
- Set a refund threshold: The system automatically initiates a refund when the transaction amount associated with the alert is below the configured threshold.
- Refund all: The system automatically initiates a refund for every eligible Ethoca alert, regardless of the transaction amount.
Viewing Dispute Alerts
- View and filter dispute alerts: Go to Transactions > Disputed Orders > Dispute Prevention and search for dispute alerts by transaction ID, service type, card brand, status, or date range. The list displays the notification date, service type, transaction ID, transaction date, payment provider, amount, card brand, status, and billing ID.
- View alert details and refund rule results: Click View for the relevant record to see the handling deadline, transaction ID, transaction time, amount, card brand, alert type, refund status, and refund rule match result. The system indicates whether the alert meets the conditions for an automatic refund. For example, if the refund threshold is USD 100 and the transaction amount is USD 101, the alert does not meet the refund condition and no automatic refund is initiated under that rule.
- View alert type details: Hover over the alert type to view a description of the alert and recommended actions.
Handling Ethoca Alerts Not Resolved Automatically
For Ethoca alerts that do not meet the automatic refund rules or require further action, merchants can process them from the alert details.
- Process pending alerts: Open an Ethoca alert with a Pending status, review the transaction and dispute information, and select Reject or Mark as Resolved based on the outcome.
If the associated transaction has already been refunded after the alert is received, the system automatically marks the alert as Resolved. If the dispute has already escalated into a formal chargeback, the system automatically marks the alert as Rejected.
Note: Dispute alerts that are not processed in time may still escalate into formal chargebacks. When an alert requires manual action, complete the required action before the handling deadline displayed on the page.
Modifying or Disabling Dispute Prevention Services
- Modify service settings: On the Dispute Prevention page, open the settings for the currently enabled RDR or Ethoca service, adjust the refund rules based on your business needs, and save your changes.
- Disable a dispute prevention service: Non-MOR merchants can disable RDR or Ethoca from the corresponding service settings.
Service enablement, disablement, and refund rule changes may take up to one week to take effect. Until the new settings take effect, the system continues to process dispute alerts using the settings currently in effect.
Subotiz MOR merchants cannot independently disable or modify SDR services that are centrally managed by the Subotiz platform. To enable or modify the service, contact dispute_resolution_support@subotiz.com.
Viewing Dispute Prevention Service Fees
SDR fees are charged for each dispute alert received:
Service |
Fee* |
|---|---|
Verifi RDR |
USD 15 per alert |
Ethoca |
USD 20 per alert |
- View service fee records: Go to Settlement Details in Subotiz Payments and locate the RDR or Ethoca dispute prevention service fee using the corresponding transaction ID. The Transaction ID on the Dispute Prevention page corresponds to the Transaction order ID in Settlement Details.
*Actual fees are subject to the rates officially published by Subotiz, the applicable agreement between the parties, or the rates displayed in the Subotiz admin.
Best Practices
- Set appropriate refund thresholds: Configure automatic refund thresholds based on your average order value, dispute rate, and acceptable refund costs.
- Process dispute alerts promptly: Review pending alerts regularly and complete any required action before the handling deadline.
- Plan for processing time: Service enablement, disablement, and refund rule changes may take up to one week to take effect.
- Continue monitoring chargebacks: SDR does not cover every dispute. Continue monitoring formal chargebacks and your overall dispute rate.
SDR centralizes Verifi RDR and Ethoca dispute prevention in Subotiz Payments, allowing non-MOR merchants to manage alerts and automatic refund rules in one place. Timely management of refund rules and pending alerts helps reduce chargeback risk and dispute handling costs.