Effectively curb friendly fraud
Have you ever bought something in an online store and wondered which store it actually was that is visible in your digital banking app? Or have you, as a merchant, always wished that your company logo was displayed in the account statements in the digital banking app? Today, a significant number of chargebacks can be prevented because the chargeback is not actually intended by the cardholder.This is what we call friendly fraud or friendly fraud. Mastercard has just recently introduced a service that helps to effectively reduce friendly fraud. This service is a result of Mastercard's recent acquisition of Ethoca.
What is Friendly Fraud?
Ethoca is a global provider of technology solutions that help merchants and card issuers quickly detect and combat friendly fraud in digital commerce through real-time collaboration.
Friendly Fraud: Friendly fraud is often a result of undetectable merchant identifiers in transaction details. Cardholders mistakenly initiate chargebacks because they do not recognise the purchase or merchant description. According to a May 2020 study by consultancy Aite, 25% of cardholders surveyed initiated a chargeback dispute. They later discovered that the merchant's description was simply unclear and the debits were valid. MasterCard aims to reduce the costs associated with chargebacks and disputes.
What does this mean?
Providing your business logo to Ethoca allows for greater transparency, which reduces fraud, and everyone can benefit from this visibility. With merchants' digital logos, MasterCard® is able to provide cardholders with enriched post-transaction data. This means cardholders are able to identify valid purchases and reduce billing issues.
What to do?
Merchants are asked to upload their business logo and share other information about their business, such as physical business address, contact information and sales policies. The logo micrositewas provided by MasterCard at the following link:Logo Microsite:https://logo.ethoca.comHinweis: Merchants can share their business logos with MasterCard® free of charge .
Example of a digital banking app with the merchant's company logo.
Advantages
With the introduction of the new standard, all participants in the payment ecosystem will benefit, especially merchants. Merchants will benefit from increased brand exposure every time a cardholder looks at a purchase and hopefully less friendly fraud, which has cost implications and can even lead to blocked acquirer accounts.
Support/Help
Contact our support team if you have further questions about Ethoca and what to do next.
