Ethoca releases new integrated solution suite
Ethoca which helps card issuers and online retailers to increase card acceptance and stop eCommerce fraud and disputes has released its new integrated solution suite. This comprises Ethoca Eliminator, Ethoca Alerts and Enhanced Representments which the company says, can mitigate up to 90 per cent of charge backs from genuine fraud, friendly (or third party) fraud, and false claims. It sets the stage, says the company, for increased card acceptance.
With friendly fraud (whether innocent or hostile) and false claims now reaching 90 per cent of all fraud volumes in sectors like digital goods, card issuers, merchants and customers are all facing a downward spiral of disputes that are having a significant impact of card acceptance. Industry estimates suggest that "false declines" - when good customers are falsely declined due to the risk of fraud - are continuing to increase. For every $1 in confirmed fraud, $13 in legitimate transactions are falsely rejected. Customers experiencing a false decline will elect to abandon purchases at trusted eCommerce websites, pull out a different payment card or, in 39 per cent of cases abandon the purchase altogether.
A key component of the package is Ethoca Alerts. This means that if customers dispute transactions, card issuers in the Ethoca network will provide confirmation of fraudulent or disputed transactions to Ethoca. These real time alerts to more then 5400 merchants participating in the Ethoca network mean that merchants are able to move quickly to prevent goods from being fulfilled and can refund the transaction to avoid chargeback.