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Merchant Collaboration is a pre-chargeback resolution channel that routes eligible dispute cases directly to the merchant for review before a formal chargeback is submitted to the card network. Marqeta integrates with Verifi, a Visa solution that operates the Collaborative Dispute Resolution Network (CDRN), to facilitate this process. If the merchant accepts and issues a refund, the case is closed without proceeding to the card network. If the merchant declines or does not respond within the defined SLA window, the case automatically falls back to the standard chargeback flow. For information on the overall dispute process, see About Disputes.
Regulatory timelines and provisional credit obligations are fully preserved regardless of the Merchant Collaboration outcome.

Merchant Collaboration in dispute flow

Merchant Collaboration adds an optional resolution step between dispute case creation and submission of a chargeback to the card network. For programs enrolled in CDRN, an eligibility check is inserted into the standard dispute flow after a dispute case is created. If the case is eligible, it is submitted to Verifi, which notifies the merchant directly, before any chargeback is submitted to the card network. The merchant has a defined SLA window to respond. The following are the possible paths through Merchant Collaboration:
  • Merchant accepts: The merchant issues a refund. The case is closed and no chargeback is submitted to the card network.
  • Merchant declines or does not respond within the SLA: The case automatically proceeds through the standard chargeback flow with no change to regulatory timelines or cardholder experience.

How Merchant Collaboration works

Marqeta handles all API integration with Verifi. No changes are required to how disputes are submitted by cardholders or via Dispute Portal.
1

Eligibility check

When a dispute case is created, the system evaluates the program configuration, merchant participation, dispute reason code, and transaction amount to determine whether the case is eligible for Merchant Collaboration routing.
2

CDRN submission

If eligible, the case is submitted to Verifi. The case enters the MERCHANT_COLLABORATION status.
3

Merchant response

Verifi contacts the merchant. Marqeta polls for a merchant response every 15 minutes. The merchant has a defined SLA window to respond.
4

Resolution

If the merchant accepts, the case is closed and the cardholder is refunded. No chargeback is submitted to the card network. If the merchant declines or the SLA window expires without a response, the case automatically falls back to the standard chargeback flow.

Case states for Merchant Collaboration

CDRN introduces a distinct case status within the standard dispute case state model. The following table describes the states relevant to Merchant Collaboration.
StateDescription
MERCHANT_COLLABORATIONThe case has been submitted to Verifi and is awaiting a merchant response.
CLOSEDThe merchant accepted and issued a refund. The case is closed without a chargeback.
OPENThe merchant declined or did not respond within the SLA window. The case has returned to the standard chargeback flow.
For a full description of dispute case states and network dispute states, see Dispute case states.

Webhooks

Marqeta sends webhook events as a case moves through the Merchant Collaboration flow.
A refund issued through CDRN is not recorded as a related transaction to the original dispute.
The following transitions generate webhook notifications:
TransitionDescription
MERCHANT_COLLABORATIONCase transitions to this state when the case is submitted to Verifi for merchant review.
CLOSEDCase transitions to this state when the merchant accepts and issues a refund. The case is closed with no chargeback.
OPENCase transitions to this state when the merchant declines or the SLA window expires. The case re-enters the standard chargeback flow.
For general information on subscribing to webhook events, see Dispute Webhook Events.

What changes for your program

Marqeta handles all integration with Verifi CDRN. The following aspects of the dispute process remain unchanged:
  • How disputes are submitted by cardholders or via Dispute Portal.
  • Regulatory timelines and provisional credit obligations.
The following case types are not eligible for Merchant Collaboration routing:
  • ACH and non-card transactions.
  • Cases that have already been submitted to the card network.