Mastercard and Salesforce have announced a new integration to enhance trust across the ecosystem. The integration aims to help customers speed up the resolution of transaction disputes, and reduce costs associated with resolving them.
Disputes and chargebacks represent a significant challenge to the entire payments industry. Chargebacks are when a consumer notices a transaction they do not recognise and requests a chargeback from their bank. Projections suggest that by 2026 there could be 337 million chargebacks annually, an increase of 42% from 2023 levels. The integration will streamline the way issuers, like banks and other financial institutions, view and manage transaction data, such as disputes and decisions. Both companies expect the integration will enable a quicker, more efficient and transparent response to dispute inquiries.
A one stop shop approach
The partnership will integrate Salesforce’s Financial Services Cloud (FSC) with Mastercard’s dispute resolution services. This will provide a one-stop shop for intake, dispute management, reporting, and chargeback prevention.
Mastercard’s services include Ethoca Alerts, which provides near real-time notifications when a financial institution raises a chargeback. Additionally, Ethoca Consumer Clarity, enables the provision of rich merchant and purchase insights to issuer back-office teams. The data from these services is now being fed into FSC. As a result, every bank agent and team member working on a dispute has more visibility from start to finish and delivers the best customer experience.
FSC is powered by the Einstein 1 Platform. The solution unifies customer relationship management, AI, merchant and consumer data, development and security capabilities into a single, comprehensive platform.
Johan Gerber, Executive VP, Security and Cyber Innovation at Mastercard said: “Technology is helping to speed up and improve the checkout experience. Especially when shopping online. However, every disputed transaction can create stress for the consumer, resource pressures and increased costs for merchants and financial institutions. Through this partnership, we are adding to the tools that make it easier and faster for banks and merchants to resolve disputes. This further enhances trust in the ways they choose to pay.”
Eran Agrios, Senior Vice President and General Manager for Financial Services at Salesforce said: “Our partnership with Mastercard is a testament to our shared vision. We use trusted data and innovative technology to streamline processes and deliver great customer experiences through the Einstein 1 Platform. Together with the Mastercard team, we are reimagining the entire transaction dispute process. Bringing together the power of Salesforce’s CRM, data, and AI with Mastercard’s dispute resolution, to deliver an end-to-end solution that will benefit both our joint customers.”
Chargebacks911 report
In January 2024 Chargebacks911 published its 2024 Cardholder Dispute Index report. The research compiled insights from more than 4,000 consumers engaged in chargeback processes with issuing banks in the past year. Factors such as transaction recognition difficulties and convoluted return processes emerge as the top reasons compelling consumers to initiate chargebacks. The report offered useful insights for merchants seeking to mitigate disputes.
Enterprise Times: What this means for businesses.
The Chargeback911 report was a useful signal of the sign of the times. Consumers expect easier and safer shopping experiences which includes a seamless payment process. However, for years, retailers and brands have witnessed significant rises in chargeback fraud and misuse within the world of payments. This was up to 75% of all chargebacks being filed for illegitimate reasons, according to Chargeback911.
So, it’s a sensible move by Mastercard and Salesforce to develop an integration to enhance trust across the ecosystem. Any tool or application that improves the resolution of transaction disputes, and reduce costs associated with resolving them is welcomed. Hopefully, this integration will be duplicated across other eCommerce platforms and payment providers.
