Ecommerce chargebacks are more than just costly—they’re disruptive. Each dispute costs your business time, money, and credibility with payment processors. To help merchants stay ahead, major card networks like Visa and Mastercard introduced real-time chargeback alert systems such as Ethoca and Verifi.
But here’s the truth: not all alerts are created equal. Understanding how each system works—and how to unify them—can make or break your chargeback prevention strategy. Let’s explore how Liftoff Solutions leverages Ethoca, Verifi, and automation to help merchants eliminate disputes before they escalate.
What Are Chargeback Alerts?
Chargeback alerts are real-time notifications sent to merchants when a customer disputes a transaction. These alerts provide a short window—often just hours—to refund, resolve, or validate a transaction before it becomes a formal chargeback.
· Used effectively, alerts can:
· Prevent unnecessary disputes before they impact your ratios
· Preserve revenue that would otherwise be lost
· Maintain a healthy merchant account and processing reputation
Instead of finding out weeks later that a chargeback has hit, you’ll receive an instant warning— giving you the power to act before damage occurs.
Ethoca: Mastercard’s Global Collaboration Network
Ethoca, owned by Mastercard, is one of the most trusted global alert systems for dispute prevention. It connects merchants, issuers, and payment networks to share data in real time.
When a cardholder contacts their bank about a suspicious transaction, Ethoca instantly notifies the merchant, who can then issue a refund or clarification before it becomes a chargeback.
Strengths of Ethoca
· ⚡ Lightning-fast alerts – Merchants are notified within minutes of dispute initiation.
· 🌍 Global coverage – Connects with over 5,000+ issuers worldwide.
· ✅ No ratio impact – Refunds processed through Ethoca don’t count as chargebacks.
Limitations
Ethoca primarily handles Mastercard transactions. For full protection, merchants processing Visa payments need to add Verifi into their stack.
Verifi: Visa’s Real-Time Resolution Platform
Verifi, owned by Visa, performs a similar role but specializes in Visa transactions. Its Card Not Present (CNP) Dispute Resolution Network connects merchants and issuers directly to prevent disputes from escalating.
Key Features
· 🧾 Order Insight: Shares detailed transaction info (product, delivery, timestamps) with issuing banks in real time.
· 🔁 Rapid Dispute Resolution (RDR): Automatically refunds eligible transactions before chargebacks occur.
· 🔌 API Integration: Enables full automation between merchant systems and Verifi’s network.
Why Verifi Stands Out
Verifi helps reduce confusion-driven disputes—cases where customers don’t recognize legitimate charges. By sharing detailed order information instantly, Verifi prevents unnecessary disputes before they reach your chargeback ratio.
Ethoca vs. Verifi: What’s the Difference?
Both systems aim to prevent chargebacks, but each covers different card ecosystems and operates slightly differently.
|
Feature |
Ethoca (Mastercard) |
Verifi (Visa) |
|
Network Owner |
Mastercard |
Visa |
|
Primary Coverage |
Mastercard transactions |
Visa transactions |
|
Core Function |
Real-time merchant alerts |
Real-time dispute resolution |
|
Key Tools |
Alert notifications |
Order Insight & RDR |
|
Automation Options |
Merchant-initiated refunds |
API-driven auto refunds |
Most high-volume merchants use both systems for complete coverage. However, managing Ethoca and Verifi separately can be time-consuming—unless you automate them through Liftoff
Solutions.
Why Alerts Alone Aren’t Enough
While alerts are an essential first line of defense, they only address disputes that have already started. True prevention begins even earlier—with proactive fraud detection, data verification, and transaction analysis.
By incorporating tools like BIN lookups, KYB/KYC verification, and tokenization, merchants can stop risky transactions before an alert is ever triggered.
Liftoff Solutions: Unifying Ethoca, Verifi, and AI-Driven Prevention
Liftoff Solutions takes chargeback prevention to the next level by seamlessly integrating Ethoca, Verifi, and advanced AI automation into one unified platform.
Instead of managing multiple systems or reacting manually, Liftoff automates everything behind the scenes.
Liftoff’s Unified Platform:
· 📡 Consolidates Alerts: Combine Ethoca and Verifi alerts into a single dashboard.
· 🤖 Automates Refunds: Issue refunds automatically before disputes escalate.
· 🧠 AI Predictive Prevention: Identify at-risk transactions before they trigger alerts.
· 📊 Data Analytics: Track performance and dispute trends to continuously improve outcomes.
By merging Mastercard and Visa alert data, Liftoff ensures you never miss a dispute, while its AI-powered engine reduces false positives and automates smarter resolutions.
Automation That Goes Beyond Alerts
What sets Liftoff Solutions apart is its ability to predict and prevent disputes—not just react to them.
Using machine learning and historical transaction data, Liftoff identifies risky transactions early and acts automatically to prevent loss.
Benefits for Merchants
· 🔍 Detect and block at-risk transactions in real time
· 💬 Automate customer communication to resolve issues before disputes
· ⚙ Utilize Visa RDR and Mastercard Ethoca simultaneously
· 📉 Maintain a chargeback ratio well below 1%
The result: less manual work, fewer chargebacks, and more recovered revenue.
How to Set Up Chargeback Alerts with Liftoff Solutions
Getting started with Liftoff is simple and takes only minutes:
1. Connect your merchant account – Visa, Mastercard, or both.
2. Activate integrations – Enable Ethoca and Verifi directly from the dashboard.
3. Automate workflows – Set refund rules, customer notifications, and analytics tracking.
4. Monitor results – Track performance through the unified analytics portal.
Once connected, every alert—no matter the network—is handled automatically, freeing your team from manual intervention.
Frequently Asked Questions (FAQ)
What are Ethoca and Verifi used for?
Ethoca (Mastercard) and Verifi (Visa) are real-time dispute alert systems that notify merchants of customer disputes before they become chargebacks.
Can I use both Ethoca and Verifi together?
Yes. Using both ensures full coverage across Visa and Mastercard transactions, giving you maximum protection.
Do alerts completely eliminate chargebacks?
Alerts dramatically reduce chargebacks but can’t prevent all. When combined with Liftoff’s AI automation, prevention rates improve significantly.
Is Ethoca faster than Verifi?
Both operate in real time. Verifi includes additional tools like Order Insight and Rapid Dispute Resolution for Visa transactions.
How does Liftoff Solutions use alerts?
Liftoff integrates both Ethoca and Verifi into one platform, automating responses, refunds, and predictive prevention across all card networks.
Prevent Chargebacks Before They Start
Chargeback alerts are vital—but true prevention requires more than reacting fast. Liftoff Solutions merges Ethoca, Verifi, AI automation, and fraud intelligence into one powerful platform that gives merchants complete control over their disputes.
Protect your business from revenue loss, preserve customer trust, and keep your chargeback ratio below industry thresholds.
Start your free trial today and discover how Liftoff Solutions can stop chargebacks before they ever reach your account.