MasterCard announced on March 12 their acquisition of Ethoca, pioneer of the chargeback or issuer alert service. The acquisition is expected to close by the end of the second quarter and terms of the deal were not disclosed.
Ethoca came to market in 2005 with the first card issuer-to-merchant collaboration network, their Ethoca Alerts service. This network allows Ethoca’s now 4,000 financial institution partners to communicate disputed transactions with their more than 5,000 merchant clients, allowing the merchant to respond and potentially avoid a chargeback. These services, known as issuer alerts, can help organizations reduce costs and lower chargeback rates.