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RECORDING
The webinar is recorded and the recording will be
made available in the Resource Center on Academy
on the Web after the session
3. Q&A
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COVID-19 Update
The situation is constantly evolving.
Follow the Announcements for any changes.
Moving forward
In the event of any conflict between information set forth in this webinar and the
Mastercard Standards, the Mastercard Standards shall in all respects exclusively
govern and the conflicting information set forth herein shall be of no effect.
RC 4863 Cardholder Does Now effective for first chargebacks processed on or after 17 July 2020
Not Recognize Elimination (previously 17 April 2020)
Chargeback Cycle Reduction Now effective for first chargebacks processed on or after 17 July 2020
(previously 17 April 2020)
Pre-Arbitration Mandate and Now effective for first chargebacks processed on or after 17 July 2020
Requirements (previously 17 April 2020)
Chargeback
Collaboration Layer*
Second Presentment
Chargeback
Arbitration Chargeback
Second Presentment
Pre-Arbitration Pre-Arbitration
(optional) (sometimes required
Arbitration Case (45 days) – minimum 30 days)
Issuer Acquirer
Pre-Arbitration Case
Pre-Arbitration
Pre Arbitration Required 30 days prior to Arbitration case • Acquirer may accept Pre-arbitration
escalation for these reasons. Escalation to arbitration case • Cardholder Dispute Chargeback
• Point of Interaction Error (except ATM Disputes) (Mastercard moves funds in payment)
must be within 75 calendar days of 2nd presentment. or
• No Cardholder Authorization
• Questionable Merchant Activity • Reject the pre-arbitration with rebuttal
• Participating Countries—Installment Billing Dispute (Issuer would have option to escalate)
• When there is a chargeback reason code change or
• Take no action
(Issuer would have option to escalate)
• For the next 6 months, Mastercard will continue identifying merchants with excessive fraud in the
ecommerce space. Acquirers should use this information to work with their merchants to reduce fraud.
• Acquirers and merchants that take action to authenticate consumers using incremental data about the
consumer and transaction environment (device ID, IP address, location, etc.) will reduce the likelihood of
being identified in this program
• During this time, Mastercard will suspend assessments related to the EFM program. Assessments will begin
November 2020, for violations occurring in October 2020.
IN THE EVENT OF ANY CONFLICT BETWEEN INFORMATION SET FORTH IN THIS DOCUMENT AND THE MASTERCARD STANDARDS, THE MASTERCARD STANDARDS SHALL IN ALL RESPECTS EXCLUSIVELY
GOVERN AND THE CONFLICTING INFORMATION SET FORTH HEREIN SHALL BE OF NO EFFECT.
Temporary Changes to Excessive Chargeback Program (ECP) - Effective
April 1
ECP Monthly Criteria
ECM HECM
150 basis points + 100 chargebacks in a given month 300 basis points + 300 chargebacks in a given month
• For the next 4 months, Mastercard will suspend program identifications in the airlines, cruise lines,
passenger railways and travel agent categories since these categories have been directly impacted by travel
restrictions globally. During this period, Mastercard will continue to monitor all merchants to determine if
additional categories should be included in the list of suspensions.
• Acquirers should continue monitoring these and all other delayed-delivery merchant categories that may
have also been impacted. It is important to remain vigilant and also monitor for merchants that are taking
this opportunity to commit fraud, perpetuate a scam and/or deceive cardholders.
• If a merchant is identified in ECP, and has been directly impacted by COVID-19, acquirers can request an
extension for compliance with Standards. The acquirer must clearly explain why/how the merchant has
IN THE EVENT OF ANY CONFLICT BETWEEN INFORMATION SET FORTH IN THIS DOCUMENT AND THE MASTERCARD STANDARDS, THE MASTERCARD STANDARDS SHALL IN ALL RESPECTS EXCLUSIVELY
GOVERN AND THE CONFLICTING INFORMATION SET FORTH HEREIN SHALL BE OF NO EFFECT.
COVID-19 Update
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COVID-19 Update
What Reason Code? Chargeback message reason code 4853 (Cardholder Dispute)
governs dispute resolution for most scenarios that will arise from
COVID-19-related disputes. This includes, but is not limited to:
• Goods or Services Not Provided
• Goods or Services Were Either Not as Described or Defective
• Credit Not Processed
• Failed Travel Merchant – Intra-EEA and Domestic European
Transactions Only
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Chargeback Scenarios
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Chargeback Scenarios
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MASTERCOM DISPUTE RESOLUTION
Issuers Merchants
o Matercom is mandatory for all Mastercard customers from 17 o Merchants may optionally choose to participate directly.
April 2020 Merchants may choose to participate through their acquirer in
2020
o Issuers already using Ethoca today for 100% of their fraud and
dispute data should continue to work through Ethoca to o New Merchants are onboarded regularly to Ethoca’s merchant
participate in merchant collaboration network
o Mastercom will cross-check transactions being initiated o For merchants who do not participate in Collaboration,
Participation through Mastercom Claims Manager with the Ethoca Mastercom releases the chargeback from Collaboration and
database to ensure proper coverage through both the processes it through the standard chargeback process within
Mastercard and Ethoca networks the same business day that it is created
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MASTERCOM DISPUTE RESOLUTION
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MasterCom and Dispute Resolution Update
AN 2542—Announcing Mastercom Collaboration for Issuers, Acquirers, and Merchants - updated on 28 of Feb 2020
• Ethoca and Mastercard are anxious to support you during this Covid 19
pandemic. There are substantial benefits of remaining opted in to
Mastercom Collaboration since it can help quickly resolve a dispute once-
and-done BEFORE the high volumes of chargebacks and multiple cycles
and operational costs.
• Issuers can now either address disputes and obtain merchant refunds via
MASTERCOM COLLABORATION
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What is Ethoca?
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What is Ethoca?
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Ethoca Alerts: How it Works
1 2
4 3
The Mastercom Claims Manager dispute platform has integrated directly with
Ethoca’s merchant network to facilitate collaboration
Mastercom Collaboration
1) All first chargeback data initiated by Mastercard Issuers will be sent to Ethoca Merchant Network to
attempt Collaboration before a formal chargeback is created
Yes
Case closed!
Merchant Resolves No
Issuer sends Ethoca sends Alert Ethoca Alert with
cardholder dispute to merchant refund ✓ Claims Manager ✓ Chargeback is processed
detail to Ethoca network for checks that issuer as BAU Chargeback
network prior to resolution ICA is opted-out of
chargeback Collaboration and
Chargeback allows dispute to
Proceeds in Claims process
Manager
• Customers are concerned about growing volumes they will not be able to manage.
• Collaboration is THE solution for resolving high volumes of disputes BEFORE they
become a chargeback.
• Ethoca’s focus on adding more merchants at this time directly benefits Issuers and
Acquirers through reduced Chargeback volumes.
• Additionally - Issuers – if you process more than 20,000 chargebacks in total
annually, you can immediately reduce your Chargeback Volumes by 15-35% by
simply implementing Ethoca UPSTREAM of the chargeback process.
➢ Sign Ethoca Enrolment Form
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Questions & answers
Global dispute.resolution@mastercard.com
Europe dispute.resolution.europe@mastercard.com
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We’re Ready to Help You
• Please reach out to the Mastercom or Ethoca teams directly with any
further questions or concerns:
carolyn.sweeney@mastercard.com for EU
Sidharth.nair@mastercard.com for MEA
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