Mastercard has acquired Ethoca, a company helping merchants and card issuers to identify and resolve fraud in digital commerce.
Ethoca will provide Mastercard with tools to increase its security activities, data insights, and AI solutions in order to boost anti-fraud efforts.
The anti-fraud company is a global network of banks and merchants with the goal of creating a simple trusted consumer payment experience. Its network is made up of over 5,000 merchants and 4,000 financial institutions from across the globe.
When a fraudulent transaction is identified, near real-time information is sent to the merchant so they can confirm the transaction, stop delivery or reverse the transaction and avoid the chargeback process. This helps merchants and banks to lower the operational costs by removing fraud at the source.
Mastercard president of cyber and intelligence solutions Ajay Bhalla said, “Advancements in technology are enabling us to transform the experience for our customers.
“Ethoca is a strong addition to our multilayered cyber strategy, helping customers take immediate action against fraud and eliminate chargebacks before they can occur. In turn, consumers are provided with a better checkout experience every time they shop at a participating site.”
Earlier in the year, Mastercard formed a partnership with Konsentus to gain access to its third-party provider (TPP) identity and regulatory checking services.
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