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This week we will discuss about Ethoca and Verifi services, and how they can help your online business
What is Ethoca and Verifi?
Ethoca and Verifi are communication platforms. The main objective of these platforms is to minimize and/or prevent chargebacks, fraudulent transactions and costs associated with them in card-not-present environments by enabling the merchant to be alerted via notification in real time and assess and take action on a confirmed fraud or dispute before it escalates to a chargeback.
Alert Process.
By participating in the Ethoca and Verifi respective networks, the merchant is notified of specific transactions such as confirmed fraud or chargebacks and is called to action, either refund as soon as possible or stop the settlement, ideally within 24 hours and notify the card issuer so no further escalation happens.
Another method is to agree upon a set of rules such as refunding all alerts below a certain amount, saving a lot of time that would be used to go through all the received alerts.
Benefits of using Ethoca and Verifi Alerts.
By providing a timely and decisive response by refunding the client, chargebacks can be avoided before they are even filed, along with all the fees associated with the chargeback process while also saving time, Ethoca and Verifi can resolve a case within hours while the chargeback process can take weeks or even months, resulting in lower chargeback ratios.
In the case of fraud these alerts can prevent transactions being filed as fraud and damaging the merchant’s reputation by preventing a negative fraud ratio and maximizing the ROI.
What if a Chargeback is filed after the user is refunded?
Ethoca and Verifi work with card issuers to prevent this from happening, however in the unlikely event that it does, they will resolve the issue and make sure that the alert fee is not charged.
Differences between Ethoca and Verifi.
Both networks work with different card scheme brands and issuers, thus having them both will provide good coverage of card schems and issuers. While Verifi specializes with reason codes related to consumer disputes such as merchandise not received, Ethoca on the other hand, specializes in reason codes relating to unauthorized transactions and fraud. Another difference is that Verifi deals mostly with VISA disputes, while Ethoca with Mastercard, both being supported by their respective card schemes.
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