What is Ethoca?
Kount integrates with Ethoca Alerts, a service that provides notification of known fraud based on a cardholder claim, closing the communication gap between card issuers and merchants. First, an issuer notifies Ethoca of cardholder-confirmed fraud. Next, Ethoca transmits an alert to the merchant. Then, the merchant acts on the alert. Finally, Ethoca transmits an alert outcome to the issuer.
How Does Ethoca Work?
There is typically a four to six week delay between processing a fraudulent order and receiving notification of a chargeback. The problems with "chargeback lag" are:
- It is too late to recover the goods.
- It is too late to identify new fraud trends and stop the fraud because too much time has passed.
Thus the merchant’s only recourse is to fight the chargeback.
Ethoca reduces the chargeback lag to days, hours, or even minutes, enabling merchants to prevent chargebacks by preemptively refunding charges and reducing the cost of fraud by stopping or redirecting the shipment of physical goods.
Merchants who subscribe to Ethoca Alerts can interact with the service via the AWC, matching alerts of known fraud with corresponding transactions in the AWC. With this integration, Kount acts as a proxy between Ethoca and merchants, allowing merchants to access the features and workflow without directly integrating with Ethoca.
Who Should Use Ethoca?
- Digital goods merchants who want to maximize order acceptance and control chargebacks.
- Physical goods merchants who sell high value, low margin merchandise to assist in preventing chargebacks.
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