Problem: The time between when a card issuer detects and confirms potential fraud and when a merchant finds out can vary from days to 4-6 weeks later when a chargeback is issued. This latency creates unnecessary costs and aggravation for both issuers and merchants, especially when the transactions are card-not-present online orders. For issuers in particular, there are the costs of people to manage the chargeback process, fees assessed to issue chargebacks and in a growing number of instances, issuers are also directly liable for fraud on 3D Secure transactions.
Solution: Ethoca Issuer-Confirmed Fraud AlertsSM provides a communications hub betwee
n card issuers and merchants that eliminates the latency, enabling merchants to receive push-based alerts of fraud that has been confirmed by the cardholder. In addition to getting the alerts distributed quickly and at low cost, Ethoca’s hub enables a feedback loop to issuers that gives them insights into how effective the merchants are at stopping fraud and knowledge of whether a refund has been issued, enabling chargeback costs to be eliminated.
How it works
- Issuer reports compromised cards to Ethoca.
- Ethoca instantly pushes alerts to the merchants affected.
- Merchant cancels or reroutes the order, if possible, and reports the outcome to Ethoca.
- Results are compiled and fed back to issuers
Adoption
Over 100 of the world’s largest e-commerce merchants are enrolled in this service and enjoying the easy-to-use platform provided by Ethoca. As an issuer, that means you'll be providing immediate alerts to a majority of the most significant online enterprises and getting feedback from many of the highest volume sellers on the web.
Key benefits for issuers
- Reduce chargeback fraud management costs
- Lower chargeback submission costs
- Cut issuer-liable losses on 3D Secure transactions
- Increased attractiveness of card brand to consumers; decreased attractiveness to fraudsters
Request more information on Issuer-Confirmed Fraud Alerts service
There is no integration required -- issuers can begin by manually typing in a few confirmed fraudulent transactions at a time or uploading batch files. Your alert data will start reaching merchants in less than 24 hours, once we are receiving the Issuer-Confirmed Fraud AlertsSM alert data from you.
To get started, please fill the form at left. In a hurry or have a question? Please call 1-866-215-2883.