Currently, the Ethoca network brings together over 5,000 merchants and 4,000 financial institutions around the world. Once a fraudulent transaction is identified, near real-time information is sent to the merchant. Thus, the merchant is able to confirm the transaction, stop delivery, or reverse the transaction, with the purpose to avoid the chargeback process. As such, both merchants and card issuers benefit from lower operational costs, thus reducing fraud at the source.
In an intend to further scale these capabilities, by combining Ethoca with its security activities, data insights, and artificial intelligence solutions, Mastercard will help merchants and card issuers identify and stop potentially fraudulent purchases and false declines. Representatives of Mastercard consider that Ethoca is an addition to their multilayered cyber strategy, helping customers take immediate action against fraud, and eliminate chargebacks before they can occur.
Terms of the agreement were not disclosed, however the transaction is anticipated to close in Q2 of 2019.
For more information about Ethoca, check their complete profile in our web fraud & e-identity company database.
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