Ethoca is a secure network for card issuers and merchants to connect and work cooperatively outside the payment network in a unique and powerful way!
Thousands of times a day, card issuers and merchants identify fraudulent and/or suspicious transactions that have gone undetected by the other party, resulting in fraud losses and chargeback costs to both. Ethoca closes the information gap between the card issuers and merchants, making this valuable information securely available in real-time.
Ethoca Alerts is the first service rolled out leveraging Ethoca’s global network of card issuers and online merchants. Ethoca’s direct-from-source card issuer data is used by merchants to stop the fulfillment of goods and services tied to fraudulent accounts on orders they are actively processing. Ethoca Alerts significantly reduces the time it takes for merchants to be alerted of confirmed fraud from the current three to six weeks, to minutes, hours or days! With Ethoca Alerts, merchants stop chargebacks at the source, reduce chargeback ratios, process more transactions, and reduce chargeback fees.
What are Ethoca Alerts?
Ethoca Alerts is a unique service that leverages Ethoca’s global network of card issuers and online merchants. Ethoca’s direct-from-source card issuer data, in the form of an alert, is used by merchants to stop the fulfillment of goods and services tied to fraudulent accounts on orders they are actively processing.
How will I benefit from Ethoca Alerts?
Ethoca Alerts significantly reduces the time it takes for merchants to be alerted of confirmed fraud by the card issuer from the current three to six weeks, to minutes, hours or days!
- Avoid the cnp fraud loss by stopping fraudulent orders you are actively processing.
- Prevent chargebacks and related costs (and for some merchants avoid exceeding chargeback limits).
- Use link-analysis to proactively identify fraudulent accounts and transactions before further losses result
- Uphold your brand and improve the customer experience
- Issuer: Issuer confirms fraud with the cardholder and then sends an advance notification to Ethoca of an impending chargeback.
- Ethoca: Instantaneously transmits this notification to the merchant.
- Merchant: Acts on the alert by issuing a refund before the card issuer issues a chargeback.
- Result: Avoid Chargeback.
Ethoca Alerts Portal Snapshot
What is Ethoca’s Order Rescue?
On average merchants reject 2.9% of their orders due to suspicion of fraud*. A number of those rejected orders are actually good orders resulting in unnecessarily lost revenues! Add it up…what would a 0.5% or 1.2% increase in revenue mean for your company? It’s possible with Ethoca.
*Source: CyberSource Annual Fraud Survey 2013
Ethoca’s Order Rescue service provides merchants with unprecedented access to card issuer intelligence and cooperation to identify wrongly rejected orders by merchants.
To kick-off the Beta phase, Ethoca has enrolled two major US-based and one major Canadian-based card issuer. Card issuer participation will continue to increase throughout the Beta.
The Ethoca Case Study that Started It All:
- Major US-based online retailer with excellent fraud systems.
- Major US-based card issuer.
Analysis: The card issuer examined orders that had been identified by the merchant as fraud and subsequently rejected by the merchant.
Results: 19% of the merchant’s rejected orders were actually good orders…that’s 1 in 5!
Bottom Line: With Ethoca’s Order Rescue in use by the merchant, those orders could have been rescued resulting in a 0.6% increase in revenue.
3 Easy Steps for Merchants to Rescue Orders with Ethoca Order Rescue
- Merchant uploads a file to Ethoca with their rejected orders from that day (in addition merchants can also provide their soon-to-reject orders).
- Issuers receive rejected order information, investigate orders and provide response – no longer than 24-hour turnaround and most within 15 minutes.
- Merchant logs into Ethoca portal to review orders that are classified as wrongly rejected by the issuer (and also receive confirmation of ‘bad’ on other orders i.e., those the merchant rightly rejected).
Possible Merchant Action with Ethoca Order Rescue
Merchants receive actionable information from the card issuer enabling them to:
- Update the order as good/valid and fulfill i.e., rescue the order;
- Run an outbound campaign to invite/entice the customer to order again i.e., rescue the customer (e.g., send an incentive/coupon or offer discount);
- Measure the insult rate; and/or
- Update fraud systems.
Calculate Your Revenue Lift with Ethoca Order Rescue
- Determine your current order rejection rate:
• Include auto-rejections and manual review rejections; and
• Measure dollars rejected (not transaction count).
- Upload all rejected orders, and if possible your soon-to-reject orders, into the Ethoca portal.
- Evaluate how many orders were confirmed to be valid orders – this would be your “revenue lift”.