Prevention alerts are a chargeback management tool that can effectively stop certain chargebacks from happening. There are two primary vendors that 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, their approaches to providing that functionality differ slightly in three key areas:
-
Descriptor enrollment
-
Issuer networks
-
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.
These platforms use different processes for matching descriptors to businesses:
-
Ethoca matches descriptors in two different ways. The platform looks for descriptors that “start with” a specific phrase, or it sends alerts based on an “exact match.”
-
Verifi also utilizes two matching criteria. It looks for an “exact match” descriptor, or it matches to a registered customer service phone number.
Almost all large banks participate in both the 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 levels (low or high credit scores), and more.
Banks might not enroll all their 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.
For the most comprehensive protection, we highly recommend utilizing alerts from both vendors.
Although Ethoca alerts were originally created to address criminal fraud, they have expanded their network to include coverage for both confirmed fraud and non-fraud customer disputes. This means both Ethoca and Verifi now provide alert coverage for fraud and non-fraud disputes.
However, because Verifi primarily covers alerts for U.S. customers while Ethoca provides alerts for both U.S. and international customers, receiving alerts from both networks ensures you have the maximum alert coverage possible for your business.
Comments
0 comments
Article is closed for comments.