Best Overall Fraud/Security Solution
For the second year in a row, Ethoca has been honored in the Best Chargeback Management category at the CNP Awards. This year, the Dublin-based company adds the Judges Choice Award in the Best Overall Fraud/Security Solution.
In 2011, the company introduced Ethoca Alerts, which reduces the time it takes for merchants to be alerted of confirmed fraud from the current three to six weeks, to days, hours or even minutes. Ethoca Alerts’ direct-from-source card issuer data is used by merchants to stop the fulfillment of goods and services in a fraud situation. This data also effectively stops the processing of fraud-related chargebacks.
Merchants have their own fraud detection systems, and so do issuers. Before Ethoca Alerts, card issuers and merchants daily would identify thousands of confirmed or suspected fraudulent transactions in isolation. The problem was that they had no reliable, scalable or effective way to collaborate and communicate with each other. So all of this mutual intelligence was untapped, and the only way for card-issuing banks to communicate cardholder-confirmed fraudulent transactions was through the chargeback process.
By the time merchants got the chargeback, it was usually too late to do anything to stop the fraud and/or delivery of goods or services, or resolve the dispute directly with the cardholder. Both merchants and issuers also incurred the cost associated with processing the chargeback.
Ethoca Alerts can be accessed by merchant customers through a web portal that gets them up and running within 24 hours. Or, they can obtain alerts via an API or batch.
In 2014, more than 1,800 merchants globally used Ethoca Alerts, a 200 percent increase over 2013, the company says. It notes that nine of the Top 10 e-retailers use the service.
The company reports that Ethoca Alerts are up to 98 percent effective in stopping chargebacks, and that merchants can reduce chargeback levels from 15-40 percent. More than 25 card issuers globally belong to the Ethoca Network, and that includes seven of the top nine U.S. card issuers, according to Ethoca.