Los Angeles-based company Verifi, providing antifraud and risk-management services recently secured a patent for its dispute-resolution technology that enables merchants to avoid chargebacks by turning them into refunds earlier in the process. According to the patent abstract, the patent covers “receiving, at the partner platform, an inquiry/dispute event notification,” and “refunding the transaction or canceling future or recurring charges associated with the transaction.”

Verifi noted in the patent application, consumers are increasingly contacting their issuing bank first in the case of a disputed credit or debit card charge, cutting the merchant out until later in the process. The patent in question, in addition to streamlining the process for issuers engaged in the dispute process, helps recurring merchants by removing cardholders from the recurring payment program during the resolution process so additional charges will not come into question until the original dispute is settled.