Frequently asked questions

• What is open banking?

Open Banking is a financial technology concept that allows third-party developers to access consumer banking data through secure Application Programming Interfaces (APIs), with the consumer’s consent. It enables banks, fintech companies, and other service providers to create innovative financial products and services by leveraging a consumer's financial data. The fundamental aim of open banking is to foster a more competitive financial ecosystem, enhance customer convenience, and increase financial inclusion through personalized products and services.

• What is chargeback alert? for WHOM?

A Chargeback Alert is a notification sent to a merchant when a customer disputes a transaction with their card issuer. It serves as an early warning system that allows merchants to resolve disputes before they escalate into chargebacks, which can be costly and negatively affect a merchant's reputation and processing fees.

• For Whom?

  • Chargeback alerts are designed for merchants who accept credit or debit card payments. These merchants, particularly those operating in high-risk industries (e.g., e-commerce, travel, or digital services), benefit from chargeback alerts as they help minimize chargeback losses and protect their merchant accounts.

• What is the difference between Ethoca & Verifi?

Ethoca and Verifi are two leading chargeback management services, but they have different approaches and features:

• Ethoca:

  • Operates a collaborative network where merchants and card issuers share information.

  • Focuses on real-time notifications to merchants when a chargeback is initiated, allowing merchants to resolve disputes before they turn into formal chargebacks.

  • Offers Ethoca Alerts, which helps merchants cancel or refund disputed transactions promptly.

• Verifi:

  • Offers Cardholder Dispute Resolution Network (CDRN), where merchants can interact with card issuers and resolve disputes directly before they escalate into chargebacks.

  • Provides merchants with Order Insight, a tool that gives cardholders detailed information about transactions to help resolve disputes and reduce chargebacks.

  • Verifi’s approach is proactive and integrated into payment processing systems to prevent chargebacks by offering detailed transaction data when a dispute arises.

• Key Difference:

  • Ethoca emphasizes collaboration between issuers and merchants with real-time alerts, while Verifi provides a platform for resolving disputes through detailed transaction insights and cardholder communication before chargebacks occur.

• What is EMV 3DS 2.2.0?

EMV 3DS 2.2.0 is the latest version of the EMV 3-D Secure protocol, designed to enhance online payment security and improve user experience during the authentication process. It is an updated standard for verifying the identity of cardholders during e-commerce transactions.

• Features:

  • Supports frictionless authentication for low-risk transactions, reducing the need for cardholders to enter additional authentication steps (e.g., OTPs or passwords) unless necessary.

  • Improved integration with alternative payment methods like digital wallets (e.g., Apple Pay, Google Pay) and supports a wider range of use cases, such as mobile payments and subscriptions.

  • Enhanced data sharing: Merchants and card issuers can share more detailed information about the transaction, helping to minimize the risk of fraud and increasing approval rates.

  • Introduces new features like decoupled authentication and support for regulatory compliance (e.g., PSD2 in the EU).

EMV 3DS 2.2.0 aims to provide a more secure, convenient, and user-friendly experience for online shoppers and merchants.

• What is alternative payment ？

Alternative Payment methods (APMs) are payment solutions that differ from traditional credit and debit card transactions. They cater to the growing diversity of consumer preferences, especially in e-commerce.

• Examples:

  • Digital Wallets: Such as PayPal, Apple Pay, Google Pay, and Alipay.

  • Bank Transfers: Systems like SEPA in Europe or ACH in the United States.

  • Buy Now, Pay Later (BNPL): Services like Afterpay and Klarna, which allow consumers to split payments into installments.

  • Cryptocurrencies: Bitcoin, Ethereum, and other digital currencies used as payment methods.

  • Mobile Payments: Platforms like WeChat Pay and M-Pesa, widely used in specific regions like China and Africa.

• Purpose: Alternative payments offer consumers flexibility, faster transactions, and sometimes lower fees compared to traditional card payments. They are especially important for merchants looking to expand globally, as preferences for payment methods vary significantly by region.

Alternative payment methods are becoming increasingly essential for businesses as they adapt to changing consumer behavior and technological advancements.