Ethoca Alerts
Ethoca Alerts is a global chargeback alert service provided by Mastercard. Through real-time data integration with issuing banks worldwide, Ethoca pushes alert notifications to merchants before consumers formally submit chargebacks, enabling merchants to proactively resolve disputes and prevent chargebacks from occurring.
Key features
- Early Warning System: Receive chargeback alerts 1-3 days before formal submission, enabling proactive intervention. Gain a strategic advantage in dispute resolution and prevent chargeback records from impacting your account.
- Loss Reduction: Effectively reduce chargeback rates and avoid triggering Mastercard ECM (Excessive Chargeback Merchant) monitoring programs and associated financial penalties.
- Rapid Response:
- Auto-refund mode: Upon receiving an alert, the system processes it instantly and automatically without any manual intervention.
- Manual mode: A flexible decision is made within 24–48 hours, and the right to manual review is retained.
- Global Coverage: Leveraging the Mastercard global issuer network, covering 210+ countries and regions. Multi-scheme support: Mastercard, American Express, and Discover; Visa cards are also accepted in select regions (complementing RDR).
Ethoca Alerts operation workflow
When a buyer initiates a chargeback, Ethoca follows this process:
- Dispute Initiation: Buyer submits a chargeback request to the issuing bank.
- Merchant Verification: Issuing bank confirms merchant's Ethoca enrollment status.
- System Assessment: Ethoca is triggered and prompts the merchant to make a refund decision.
- Based on the merchant’s decision, one of the following actions is initiated:
- Accept refund: Triggers refund processing.
- Do not accept refund: Routes to standard dispute resolution.
- Fund Settlement: Acquiring banks refund the issuing bank, with funds returned to the buyer.
- Case Closure: Resolved disputes are excluded from chargeback rate metrics.
To gain the ability to resolve disputes before they become chargebacks, take action by pre-configuring your Ethoca Alerts settings.