How an Ethoca alert works
Mastercard's documentation describes two kinds of alert:
- Fraud alerts: a cardholder has reported a transaction as potentially unauthorised or fraudulent
- Dispute alerts: a cardholder has contacted the issuer about a transaction that might become a chargeback
From the issuer to the merchant and back
The issuer notifies Ethoca, and Ethoca transmits the alert to the merchant, directly or through a partner such as its payment provider. The merchant reviews the order, stops fulfilment and refunds where that is warranted, and reports the outcome. Ethoca passes the outcome to the issuer, which then knows not to raise a chargeback.
Mastercard calls Ethoca brand-agnostic, and its developer page lists Mastercard, Visa, American Express and Discover for the merchant API. Inside Mastercard's own dispute system, Mastercom, an issuer can also start the Collaboration stage through Ethoca.
Who uses Ethoca alerts
Online merchants with meaningful dispute volumes, and the gateways, acquirers and chargeback specialists that resell alerts to them. A refund through an alert gives up the sale, but no chargeback is filed, so none is counted against the merchant.
Only participating issuers send alerts, so they reduce chargebacks without ending them. A platform that takes alerts has to match each one to an order quickly, avoid refunding twice if a chargeback arrives anyway, and treat a fraud alert as a signal to block the account or card involved.
Ethoca alert, CDRN or Rapid Dispute Resolution?
- CDRN
- The alert network of Verifi, a Visa solution. The same idea: a notice that leaves the merchant to decide and refund.
- Rapid Dispute Resolution
- Verifi's service that resolves a Visa dispute automatically, by rules the merchant sets in advance. An Ethoca alert asks the merchant to act.
Where an Ethoca alert shows up in a platform
Modules that do the work
- Fraud & riskReal-time fraud scoring, limits and case management, with the risk engines you already trust.
- Card acquiringCard acceptance on the phone, in store and online, through the acquirer you choose.
- NotificationsEmail, SMS, push and in-app messages in your brand, through the providers you choose.
Platforms that need it
Where it is written
The laws and standards this page's facts come from.
- Ethoca Alerts, product page, read 13 October 2026 (Mastercard)
- Ethoca Alerts for Merchants, product page and guide, read 13 October 2026 (Mastercard Developers)
- Mastercom documentation, Dispute Resolution Cycle, read 13 October 2026 (Mastercard Developers)
General information, not legal advice: what applies to you depends on your services and your market.