Mastercard’s ‘First Party Trust Programme’ To Launch This Year

May 15, 2024

Earlier this year, we took a look at a study where many consumers accross the globe have admitted to first-party fraud, costing small businesses tremendously; not only on loss of revenue but also time.

‘First party fraud’ or ‘Friendly fraud’ involves genuine transactions that get challenged by a card holder intentionally or mistakenly, and it poses a huge loss for businesses everywhere.

Mastercard’s new First Party Trust Programme aims to reduce this type of fraud with the help of AI.

Increased Transaction Transparency

The initiative’s focus is to increase transaction transparency by giving merchants a secure channel to submit pertinent insights to counter friendly fraud and optimizes approval rates, simplifying the dispute process by using data gathered at the moment of transaction

Combined with Mastercard’s network-level analytics, this data will uncover insights into a cardholder’s purchase history and behaviour indicating first-party misuse.

Once a consumer places a transaction or dispute, Mastercard’s advanced AI and risk modelling will use the data to detect third-party fraud. By discarding the possibility of identity-theft, the programme can expose first-party fraud.

By automatically collecting, organising and parsing this data, the First-Party Trust programme streamlines the chargeback process. When a customer contests a charge, Mastercard can use the information to make quicker liability decisions — without further demands on the merchant.

Moreover, once first-party fraud is detected, the issuer can present the collected data to the consumer and give them the opportunity
to cancel their claim.

The programme gives issuers the data and confidence to have that sort of conversation with the cardholder, And we can spare the merchant, who has been overburdened with the cost of friendly fraud to date"

This programme was developed in collaboration with industry groups such as the US Merchant Advisory Group and Merchant Risk Council, as well as teaming up with Forter and Kount, an Equifax company. The latter were also one of the first to sign up. 

This programme is set to be launched in the US later this year and will expand to other markets globally later on, it is optional; merchants who opt in, will transmit the data through already established channels.

Want to learn more? Check out Electronic Payments International’s full write-up here.

Share your thoughts on our LinkedIn page.

Research: Chargeback Challenges And What To Do About Them

Research: Chargeback Challenges And What To Do About ThemMay 22, 2024Chargebacks are without a doubt one of the biggest obstacles merchants have to navigate in ...
Read More →

Mastercard’s ‘First Party Trust Programme’ To Launch This Year

Mastercard’s ‘First Party Trust Programme’ To Launch This Year May 15, 2024 Earlier this year, we took a look at a study where many consumers ...
Read More →

False Declines Are Harming Brands As Users’ Complaints Reach Thousands in Social Media

False Declines Are Harming Brands As Users’ Complaints Reach Thousands in Social Media May 8, 2024 According to the latest report by global risk tech ...
Read More →
Scroll to Top