Today we are launching Network Alerts which help you avoid 99% of chargebacks. In this blog post we’ll dive deep into how we provide them, what happens behind the scenes, and our business incentive to use them as a last resort.
Introducing Ethoca & Verifi integration
Our Network Alerts are provided by two companies called Ethoca and Verify. They are owned by MasterCard and Visa, respectively.
They sit between card issuers and merchants (you!). Whenever a card holder raises a dispute with the issuer, Ethoca and Verifi are notified first. They then pass on the notification to the merchant who is, in turn,enabled to refund the transaction before a chargeback is raised. This all happens nearly in real-time.
How is this different from Stripe’s Early Fraud Warning?
Good question! Stripe Early Fraud Warnings are based on TC40 reports that banks send to Visa (RIS: Risk Identification Service) and Mastercard (FLD: Fraud and Loss Database, previously SAFE: System to Avoid Fraud Effectively). Adyen has a similar mechanism called Notification of Fraud.
TC40 is a list of transactions that were reported as fraudulent by card-holders. The list is prepared by issuing banks and sent to card issuers. They are not real time, and they do not necessarily always end up in a chargeback being raised. In some cases Early Fraud Warning might be issued after a chargeback was raised, or it might not be issued at all.
We use Early Fraud Warnings as one of the signals in our transactions screening offering. Joined with other signals such as email verification, we enable you to make an informed decision on how to act on it.
Why are Network Alerts priced differently?
Our Network Alerts prices mimic Ethoca and Verifi pricing schemes. In the spirit of transparency, we resell Network Alerts from Ethoca and Verifi at a low margin (<10%). This incentivises us to build and improve on our base offer (transaction screening) to catch any potential chargebacks before they turn into alerts.
We treat Network Alerts as a last resort that lets our customers achieve the goal of nearly zero chargebacks. We see them as an interim offering to bridge the gap between now and the future in which our algorithm beats them in effectiveness.
Why do I need ChargebackStop to use Ethoca and Verifi?
Ethoca and Verifi integration is a fairly manual process. The good news is that we are here to take care of it for you. All you need to do is connect your Stripe account. We’ll then register your merchant account with Ethoca and Verifi, process alerts from their network, and match them with transactions in your Stripe accounts.
Secondly, as you read above we’re incentivised to act long before Network Alert is being raised.
Book a demo call with ChargebackStop.com founders to learn more.