MasterCard and Protection Against Fraud

When running a business, it is important to ensure that one’s customers are not victims of fraud or are in constant demand of chargebacks due to purchases that they may not recall. Negative tension between a merchant and their customers not only hurts a business in the long term, but can also have an effect on profit margins. 

Recently, Karen Webster from PYMNTS conducted an interview with Johan Gerber to shed some more light on the subject of fraud. Gerber is the executive vice president of security and cyber innovation at Mastercard.

In the interview, Gerber said that consumers often deal with businesses they did indeed shop at, however, confusion caused by names within credit card statements may make the transaction not immediately recognizable. The confusion would then lead to a significant amount of chargebacks.

“By 2021, we’re looking already at a cost of $8.6 billion related to chargebacks and disputes for the [United States] alone,” Gerber elaborated. “And of course, if there’s that amount of cost, it has to be absorbed somewhere in this ecosystem — which means it impacts all of us down the line.”

There is still hope in terms of the rate at which digitization continues. However, it should also be noted that the issue can get worse before it improves, according to the PYMNTS report.  

The report then noted the use of Ethoca, which MasterCard uses as its dispute resolution technology. With Ethoca, MasterCard hopes to create an initiate that can help customers better understand their card statements. For instance, the system can put an image of a business’ logo next to transactions. In turn, this would inform and remind customers of their authorization. 

“Ultimately, we hope [this] will actually reduce the confusion and therefore reduce the churn and chargebacks,” Gerber said. 

A step in the right direction would be to have merchants work closely with MasterCard in terms of giving the credit card company the correct logos. With this type of information, transactions can be matched to their respective merchants. Additionally, according to the report, MasterCard plans to attach an image to online receipts that customers can click on to view more details. This would further help eliminate uncertainty. 

Taking one’s business to the future not only requires clear communication strategies, but also trusted payment processing solutions. Merchant Broker is here to match clients with the best solutions on the market and help increase profit margins through different revenue streams. 

To receive more information, contact a professional at either 1-888-668-0733 or


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