Ethoca Alerts are a powerful tool for merchants looking to reduce chargebacks, particularly for Mastercard transactions. By offering real-time alerts, Ethoca enables businesses to intercept disputes before they escalate into chargebacks. 

Here's how Ethoca Alerts work and why they can be an essential part of a merchant's chargeback prevention strategy.

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Who Needs Ethoca Alerts?

Ethoca Alerts are a crucial tool for businesses that want to stay ahead of chargebacks and maintain smooth payment operations. Here’s who should consider using Ethoca Alerts:

• E-commerce Merchants: Online businesses, especially those handling card-not-present transactions, are at higher risk for chargebacks and can benefit greatly from Ethoca’s real-time alerts.
• Businesses with High Chargeback Rates: Merchants who consistently struggle with high chargeback ratios, particularly those near or exceeding the 1% threshold, need Ethoca Alerts to reduce their chargeback rates and protect their accounts.
• High-Risk Industries: Sectors like travel, digital goods, and subscription services, where disputes are more common, can leverage Ethoca to resolve issues before they escalate into costly chargebacks.

Key Features of Ethoca Alerts:

• Real-Time Notifications: Alerts are sent immediately when a dispute is initiated, giving merchants a chance to act fast.
• Chargeback Prevention: By responding to alerts promptly, merchants can refund transactions or resolve disputes, preventing chargebacks from being processed.

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How Do Ethoca Alerts Work?

Ethoca Alerts operate through a network of participating issuers and merchants. Here’s a step-by-step breakdown of the process:

1. Customer Dispute: A cardholder contacts their issuing bank to dispute a transaction.
2. Issuer Sends Alert: The issuer, if part of the Ethoca network, sends a real-time alert to the merchant through Ethoca’s platform.
3. Merchant Receives Alert: The merchant receives the notification and has the option to either resolve the issue or allow the chargeback to proceed.
4. Dispute Resolution: Merchants can either refund the transaction to prevent the chargeback or let the chargeback be processed if they plan to challenge it.

Most merchants have 72 hours to respond to the alert, giving them ample time to make a decision.

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Benefits of Using Ethoca Alerts

Ethoca Alerts provide a range of benefits for merchants looking to protect their business from chargebacks:

1. Avoid Chargeback Fees

Chargebacks come with significant fees, which can pile up quickly if not managed. Ethoca Alerts allow merchants to resolve disputes early and avoid these costly penalties.

2. Lower Your Chargeback Rate

Exceeding your allowable chargeback threshold can result in higher fees or even account termination. Ethoca Alerts help merchants stay below this threshold by preventing chargebacks from occurring.

3. Prevent Lost Revenue and Products

In some cases, Ethoca Alerts arrive before an order is fulfilled. This allows merchants to stop shipping products and refund the customer, preventing loss of merchandise and shipping costs.

Are Ethoca Alerts Enough?

While Ethoca Alerts are highly effective at reducing chargebacks, they shouldn’t be the only tool in a merchant's chargeback management strategy. Ethoca primarily focuses on intercepting Mastercard disputes, and there are limitations, such as the need to refund customers even if goods are not returned.

For comprehensive protection, merchants should consider combining Ethoca Alerts with other tools like Verifi Alerts or working with a chargeback management service like Disputifier.

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Conclusion

Ethoca Alerts are a valuable tool for reducing chargebacks, providing real-time notifications and preventing disputes from escalating into chargebacks. While effective, they work best when combined with a broader chargeback prevention strategy. For merchants looking to streamline this process and optimize results, partnering with Disputifier can offer the complete solution to chargeback management.

For more details on how Ethoca Alerts can help your business, contact Disputifier today.

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