In a bid to resolve some of the glaring weaknesses in payment disputes, Mastercard and Worldpay have partnered to provide solutions to this process.
The partnership see’s global payment technology firm Worldpay tap into Mastercard’s Ethoca Alerts system to provide it to its worldwide merchant base, delivering early warning signs to help resolve a payment dispute from becoming a chargeback.
Ethoca Alerts is accessible for all payment brands and delivers insights to merchants to stop the fulfilment of goods and services. Merchants will also not have to update any existing payment infrastructures to process the payment dispute system.
Johan Gerber, Executive Vice President, Cyber and Intelligence at Mastercard, said: “With ecommerce thriving, we’re working to make transactions as safe and as seamless as possible for all parties.
“This partnership with Worldpay extends our powerful technology to even more merchants around the world, reducing fraud. By working together, we will advance our shared goal of building trust and powering the global digital economy.”
Chargebacks are of considerable concern for both parties when joining forces, with industry-wide chargeback volume expected to reach 337 million by 2026, an increase of 42% from 2023.
Mastercard and Worldpay aim to improve authorisation rates for merchants by enabling them to be completed successfully in a more seamless approach via Ethoca Alerts. The collaboration intends to help protect over $2.3bn Worldpay transactions from chargebacks.
Between 2022-23, Ethoca Alerts enabled the prevention of $1.6bn in fraud due to chargebacks, helping to protect retailers from fraudulent claims.
Gabriel de Montessus, Executive Vice President, Global Enterprise at Worldpay, added: “We’re pleased to bring this solution to the market in partnership with Mastercard to deliver more value and innovation to our clients.
“Creating more accessible, more flexible and more seamless ways to reduce fraud, while accelerating commerce and protecting consumers and merchants is what drives us at Worldpay.”
