Chargebacks are a common pain point for businesses, impacting profits and customer satisfaction. Fortunately, two of the most effective chargeback alert systems—Ethoca and Verifi—can help reduce the risk of chargebacks before they escalate. 

But do you need both, or will one suffice? 

Let’s explore the key differences and similarities between Ethoca and Verifi, and help you determine which is best for your business.

What Are Chargeback Alerts?

Chargeback alerts notify merchants when a cardholder disputes a transaction with their issuing bank, giving the merchant a brief window to resolve the issue before it turns into a costly chargeback. Ethoca and Verifi are the two leading providers of these alerts, each offering merchants a proactive way to manage disputes and avoid unnecessary chargeback fees.

With chargeback alerts, you can streamline the process and take action before the dispute becomes more problematic, saving time, money, and reputation.

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Do Merchants Need Both Ethoca and Verifi Alerts?

For merchants, the choice between Ethoca and Verifi often comes down to the type of cards their customers use and the regions they serve. Here are some key points to consider:

• Ethoca: Best for businesses with global audiences, especially in Asia, Europe, and the US. Ethoca focuses on preventing fraud-related chargebacks and has a broader issuer network.
• Verifi: Ideal for US-based businesses dealing with Visa cardholders and non-fraud disputes. Verifi handles both fraud and non-fraud chargebacks, making it a versatile option for a variety of transaction issues.

For some merchants, using both Ethoca and Verifi alerts may provide comprehensive protection against both fraud and non-fraud chargebacks. This is particularly beneficial for high-risk industries or businesses experiencing high chargeback rates.

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When Should You Use Ethoca?

• Global Audience: Ethoca is suited for merchants with customers in multiple regions, especially outside the US.
• Fraud Chargebacks: If most of your disputes stem from fraudulent activity, Ethoca can help catch these cases early.

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When Should You Use Verifi?

• Non-Fraud Chargebacks: If the majority of your chargebacks are non-fraud related (e.g., processing errors or authorization issues), Verifi is the better choice.
• US Market: Verifi works best for businesses operating primarily in the US with Visa cardholders.

When to Use Both?

• High Chargeback Rates: If your business is experiencing frequent chargebacks from both fraud and non-fraud reasons, implementing both Ethoca and Verifi provides broader coverage and maximizes dispute prevention.

Similarities Between Ethoca and Verifi Alerts

Both Ethoca and Verifi provide real-time alerts when cardholders dispute transactions. This gives merchants an opportunity to resolve the dispute before it turns into a chargeback.

• Proactive Chargeback Management: Both systems help businesses tackle chargebacks early, improving overall dispute resolution.
• Streamlining Refund Processes: Both Ethoca and Verifi allow merchants to resolve disputes faster, cutting down on operational costs and preventing shipping expenses for disputed orders.
• Portal Updates: Merchants must update their portals with the outcomes of each dispute resolution, ensuring transparency and accountability.

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Key Differences Between Ethoca and Verifi Alerts

While Ethoca and Verifi share many similarities, there are key differences that influence which one is the better fit for your business:

• Issuer Networks: Ethoca has a larger network of over 5,000 issuers worldwide, while Verifi’s network includes over 1,000 issuers, primarily focused on Visa in the US.
• Reason Codes: Ethoca primarily addresses fraud-related chargebacks, while Verifi covers both fraud and non-fraud disputes. Verifi is better suited for merchants who deal with a mix of fraud and non-fraud chargebacks.

How Much Do Ethoca and Verifi Alerts Cost?

Both Ethoca and Verifi charge $40 per alert, but this cost is generally lower than the typical fees associated with chargebacks. Here’s why the investment pays off:

• Cost Savings: Preventing a chargeback saves on fees, lost revenue, and product shipping costs.
• Customizable Alerts: Merchants can set thresholds and rules to tailor the alerts to their specific needs.
• Operational Efficiency: Chargeback alerts streamline the dispute resolution process, freeing up resources for other business operations.

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Best Practices for Using Ethoca and Verifi Alerts

To get the most out of your Ethoca and Verifi alerts, consider the following tips:

1. Set Thresholds Based on Your Business Needs: Adjust the alerts to fit your specific chargeback patterns, reducing unnecessary alerts and costs.
2. Respond Quickly: The window for resolving disputes is small. Act fast to prevent the chargeback from escalating.
3. Optimize Your Ruleset: Review your dispute rules and thresholds regularly to maximize efficiency and minimize fraud-related issues.
4. Partner with a Chargeback Management Company: To ensure maximum protection, consider working with a chargeback management service like Disputifier to manage and optimize your chargeback alerts.

The Bottom Line

Both Ethoca and Verifi alerts offer valuable protection for merchants looking to reduce chargebacks and improve customer experience. While each has its strengths, the decision on whether to use one or both depends on your specific business needs. By understanding the differences and leveraging the right tools, you can minimize the impact of chargebacks and protect your bottom line.

For complete peace of mind, consider partnering with Disputifier to streamline your chargeback management and keep your business running smoothly.

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