Mastercard’s Ethoca Teams With European PSP Nets to Lower Chargebacks

European payment service provider (PSP) Nets is partnering with Ethoca, a Mastercard company, to help merchants and banks minimize chargebacks, lower consumer transaction confusion, and better share details of confirmed fraud and dispute information.

Nets Merchant Services CEO Robert Hoffmann said in a press release on Monday (Dec. 6) that the company brings expertise and knowledge when it comes to avoiding chargebacks. In collaboration with Ethoca, customers’ needs will be met with “best-in-class solutions” that will benefit both issuers and retailers.

The partnership will also “allow us to provide confirmed fraud and customer dispute information to merchants for pre-chargeback resolution, significantly reducing their fraud and chargeback related costs. By preventing invalid disputes upstream, it will enable our merchants to act on real fraud and legitimate disputes much more effectively,” Hoffmann said.

See also: Ethoca Relaunches Transaction Transparency Product, Renamed Consumer Clarity

By teaming up, both companies will allow for an easier exchange of details surrounding confirmed fraud and dispute information, which will help facilitate the dispute resolution process, reduce chargebacks and lead to improved customer experiences.

Because an increasing number of transactions are taking place across digital processes, the importance of chargeback handling and transaction transparency has taken on a new level of importance. Businesses also want to diminish the negative force chargebacks can have on revenue as well as the overall customer journey.

So far this year, chargebacks totaled an estimated $35 billion worldwide, with more than 96 percent of customers seeking additional information in their digital banking application for clarity regarding their purchases.

Read more: Transaction Clarity Seen As Key To Reducing Friendly Fraud

“This partnership with Nets extends our existing global network of merchant and issuer collaboration, helping us further reduce the costly issues of chargebacks and disputes while helping deliver trust and transparency for the cardholder,” said Ethoca Executive Vice President Jason Howard.

Nets strives to power easier payment solutions for banks, businesses, and consumers across Europe. Ethoca offers intelligence and technology solutions to empower businesses worldwide to combat fraud, prevent disputes, and improve the customer experience.