Prevention alerts are a valuable chargeback management tool. Unfortunately, not all chargebacks can be intercepted with an alert.
To understand prevention alert coverage, it is helpful to understand how the system works.
Prevention alerts are provided by two primary vendors: Ethoca and Verifi. These vendors maintain networks that issuing banks can join. Banks can participate in Ethoca’s network, Verifi’s network, both networks, or neither network.
If a bank is a member of a network, it can send an alert when a transaction is disputed. However, if the bank is not part of a network, the dispute will automatically advance to a chargeback, and you will not receive an alert.
Because participation in a prevention alert network is optional, some issuing banks have chosen not to use the service. Other banks do not currently have the data capabilities or technology to support it. This lack of participation is the primary reason merchants do not receive an alert for every dispute.
If you enroll in both Ethoca and Verifi prevention alerts, you can typically prevent 30% to 40% of disputes from becoming chargebacks.
If your prevention results fall below this average, several factors could be responsible:
While the basic functionality of both alert providers is the same, their specific network features and focuses differ slightly.
|
Alert Provider |
Primary Focus |
Geographic Presence |
|
Verifi |
Originally created to help merchants resolve issues resulting from non-fraud consumer disputes. |
Strong presence in the U.S., currently expanding into international regions. |
|
Ethoca |
Originally created to help merchants resolve issues resulting from legitimate payment card fraud. |
Strong presence in both the U.S. and international regions. |
For the most comprehensive protection possible, we highly recommend utilizing prevention alerts from both Ethoca and Verifi. This ensures you receive alerts for the maximum number of dispute categories and geographic regions.
Comments
0 comments
Article is closed for comments.