Prevention alerts are a chargeback management tool, and they can stop certain chargebacks from happening. There are two vendors who maintain prevention alert networks: Ethoca™ and Verifi™.
The basic functionality of both alert providers is the same. They both help merchants refund disputed transactions to avoid chargebacks. However, the ways the vendors go about providing that functionality are slightly different descriptor enrollment, issuer networks, and coverage.
Billing descriptors play an important role in prevention alert functionality and management. Alert platforms use billing descriptors to determine which business processed the disputed transaction.
Ethoca and Verifi use different processes for matching descriptors to businesses.
Ethoca matches descriptors two different ways. The technology looks for descriptors that “start with” a phrase or sends alerts based on an “exact match”.
Verifi also has two criteria matching options. The platform will look for an “exact match” descriptor or match to a registered customer service number.
Almost all of the large banks participate in both Ethoca and Verifi programs. However, large banks have several different bank identification numbers (BINs). These BINs are used to classify different types of accounts (debit or credit), card brands (Visa or Mastercard), cardholder risk (low or high credit scores), and more.
Banks might not enroll all BINs with both alert vendors. Additionally, some BINs are not registered in either program.
Ethoca has a greater coverage network for Mastercard accounts and a large portfolio of international BINs.
Verifi has a larger portfolio of Visa accounts and predominantly U.S. BINs.
Most merchants receive alerts from both vendors. For the most comprehensive protection, we suggest receiving alerts from both vendors.
Although Ethoca alerts were originally created to address criminal fraud, they have expanded to include coverage for both confirmed fraud and non-fraud customer disputes. This means that both Ethoca and Verifi provide alert coverage for fraud and non-fraud disputes. However, Verifi covers alerts only for U.S. customers while Ethoca provides alerts for U.S. and international customers. Receiving alerts from both vendors allows for maximum alert coverage.
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