Ethoca VS Verifi Alerts – Do You Need Both?

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Last Updated on August 4, 2023 by Corepay

Ethoca and Verifi alerts are currently the two most effective chargeback alerts on the market. You’ve come to the right place if you’re struggling with frustrating chargebacks and are above or teetering on the chargeback threshold line.

When implementing Ethoca and Verifi alerts, working with a chargeback management company is most effective as they can save you time and money and help you streamline the alert system.

We recommend working with CB-ALERT should you need Ethoca and Verifi alerts.

Let’s look deeply into the key differences and similarities between Ethoca and Verifi alerts and then explain whether or not you need both or just one.

Key Takeaways

  • Ethoca and Verifi are pre-dispute alerts that help merchants prevent chargebacks and improve customer experience.
  • Merchants in high-risk verticals or with high chargebacks can benefit from using Ethoca and Verifi alerts.
  • The choice between Ethoca and Verifi depends on the type of card used by customers and their target geos.
  • Merchants receive alerts when cardholders attempt to dispute transactions, giving them a brief window to resolve the issue before the chargeback process starts.
  • Merchants can streamline Verifi and Ethoca alerts using a chargeback management company in an easy-to-use portal.
  • Ethoca alerts focus on criminal disputes, whereas Verifi focuses on both non-fraud and fraud.

What Are Chargeback Alerts?

Chargeback alerts are crucial for merchants. They provide a brief window to resolve disputes before the chargeback process begins. These alerts are notifications that merchants receive when cardholders attempt to dispute transactions with their issuing banks.

Once an alert is received, merchants have limited time to address the issue and prevent it from turning into a chargeback.

The two leading providers of these alerts are Ethoca and Verifi. Both companies offer pre-dispute management services. Verifi automatically performs refunds based on merchant rules, while Ethoca requires merchants to refund customers and update their portal with the outcome.

This distinction makes the choice between Ethoca and Verifi dependent on the type of card used by customers.

By leveraging these chargeback alerts, merchants can reduce chargebacks, improve customer experience, and minimize operational costs.

Do Merchants Need Ethoca And Verifi Alerts

Merchants can significantly benefit from implementing both Ethoca and Verifi alerts. With this being said, we recommend looking to see your targeted geos and determining why chargebacks are also occurring. This will help you decide whether to implement both or just one.

Ethoca and Verifi alerts offer valuable solutions for merchants looking to reduce chargebacks, improve customer experience, and minimize operational costs.

By leveraging both Ethoca and Verifi alerts, merchants can enjoy comprehensive protection against chargebacks and ensure smooth payment operations while maintaining a positive customer experience.

Here’s our advice regarding using Ethoca vs. Verifi alerts:

Typically, we recommend using Verifi if:

  • Most chargebacks are non-fraud with reason codes
  • Your target market is the US

It is wise to use Ethoca alerts solely if:

  • You have a broad target audience globally (Asia, Europe, US, etc.
  • Your chargebacks are mostly fraud related

Implement Ethoca and Verifi when:

  • You have both fraud and non-fraud chargebacks
  • Your chargebacks are out of control and you need all the help you can get

Ethoca Vs. Verifi Alerts Similarities

Both Ethoca and Verifi alerts provide merchants with a proactive approach to managing chargebacks and potential disputes. 

They offer real-time notifications when cardholders attempt to dispute transactions, giving merchants a brief window to resolve the issue before it escalates into a chargeback.

Additionally, both services help drive process efficiencies and reduce operational costs for businesses by streamlining the refund process. 

Furthermore, both Ethoca and Verifi alerts require merchants to update their portals with the outcome of the dispute resolution process.

Differences Between Ethoca And Verifi

Ethoca and Verifi differ in their Issuer Networks. Ethoca has a vast network of over 5,000 issuers, while Verifi’s network comprises more than 1,000 issuers. This means Ethoca can provide broader coverage for chargeback notifications compared to Verifi.

Regarding Reason Codes, Ethoca and Verifi also have some distinctions. Ethoca was created to address criminal fraud, so it provides fraud reason codes.

Verifi alerts are for both fraud and non-fraud reason codes. A non-fraud dispute would be authorization issues, errors with processing, or other cardholder complaints.

When it comes to descriptors, Ethoca matches them in two different ways. One looks for descriptors that beings with a phrase, and the other sends alerts based on “exact match.”

Verifi uses two criteria for matching options as well. Verifi looks for “exact match” descriptors or a registered phone number.

Issuer Networks

Verifi is specifically designed for Visa transactions, while Ethoca caters to Mastercard transactions. This means that if you primarily deal with Visa cardholders, Verifi would be your recommended choice. On the other hand, if your customer base consists mainly of Mastercard users, Ethoca would be more suitable.

Regarding issuer networks, almost all large banks participate in Ethoca and Verifi programs. Ethoca has more participating banks in Europe, Asia, and Canada, while Verifi has more in the US.

How Much Do Alerts Cost?

Alerts from Ethoca and Verifi come with a fee, but it’s lower than the costly chargeback fees that merchants often have to deal with. These alerts can save merchants money in the long run by helping them avoid chargebacks and associated costs.

Both Ethoca and Verifi alerts cost $40 per alert. Here are a few quick points on pricing:

1. Cost savings: While merchants do have to pay for each alert received, this fee is typically lower than the fees incurred from chargebacks.

2. Tailored thresholds: Merchants control their alerts based on their unique requirements. 

3. Reduced operational costs: Merchants can save time and resources spent on dispute management and resolution processes by resolving disputes before they escalate into chargebacks.

4. Potential shipping cost savings: Alerts can help prevent orders from being shipped when there is a dispute, reducing both product and shipping costs for merchants.

How To Achieve The Best Results?

To achieve the best results with Ethoca and Verifi alerts, follow these steps:

  • Carefully manage thresholds and rules based on your unique requirements. Tailor these settings to reduce chargebacks and improve the customer experience effectively.
  • Promptly address any dispute attempts by cardholders within the brief window before the chargeback process begins. This will help prevent chargebacks from escalating.
  • Optimize your ruleset and adjust to maximize your profit. Not all companies deal with the same types of disputes, determine why they are occuring and refund the legitimate disputes.
  • Partner with a chargeback management company to streamline and boost the results of your chargeback alerts.

Remember, both services offer comprehensive protection. Choosing between them depends on the type of cards used by your customers.

Our Recommended Partner For Verifi And Ethoca Alerts

For the best results in managing chargebacks and enhancing your customer experience, we recommend CB-ALERT.

They offer pre-dispute management services with Ethoca and Verifi, providing comprehensive protection for online merchants and have their own portal.

Please reach out should you have any questions about the difference between Verifi and Ethoca alerts.

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