Problem: The time between when a card issuer detects and confirms that a credit card has been compromised and fraudulently used 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. While merchants have fraud screening systems in place, those systems use rules, patterns and probabilities to make a best guess about whether an order is good or bad. But knowing with certainty that an order is bad early in the process can save manual labor, shipping costs, chargeback fees and management expenses, not to mention 100% certain fraud losses. Yet, because merchants don't know what issuers know in real-time, up to 40% of issuer-confirmed fraud slips through the system undetected either by screening tools or manual reviews.
Solution: Ethoca Issuer-Confirmed Fraud AlertsSM provides a communications hub between card issuers and merchants that eliminates the latency, enabling merchants to receive push-based alerts of fraud that has been confirmed by the cardholder. With the 100% certainty that a purchase is fraudulent and that the credit card has been cancelled, you can stop the order anywhere from order receipt right up to the minute a delivery is about to be made, and recovery the majority if not all of your potential costs and losses, as well as secondary (manual review) screening costs.
Reduce fraud losses, cut chargeback fees, lower chargeback fraud management costs, do fewer manual reviews, and convey to fraudsters that you are no easy target.
Over 100 of the world’s largest e-commerce merchants are enrolled in this service and enjoying the easy-to-use and convenient platform provided by Ethoca. Most are stopping fraud that would have slipped through the cracks less than 24 hours from getting signed up for the Alert service.
Benefits
- Reduce fraud losses from stolen goods (alert may be linked to multiple transactions)
- Reduce chargeback fees
- Reduce chargeback fraud management costs
- Reduce manual review costs
- Reduce the attractiveness of merchant to fraudsters
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