Solidgate & Mastercom Collaboration: A game-changer for chargeback prevention

Chargebacks are a massive headache for everyone in payments. Naturally, card networks were the most active participants in fighting this problem through like Verifi’s Order Insight, Visa Rapid Dispute Resolution (RDR), or Mastercard Ethoca Alerts, and by imposing more rules and requirements on merchants, of course.

However, Mastercard is taking a slightly different approach with the updated Mastercom Collaboration system. This enhanced program builds upon the existing collaboration framework, making it much easier for merchants and acquirers to resolve disputes before they escalate into full chargebacks. 

As one of the first acquirers to go live with the Mastercom Collaboration platform, we at Solidgate are excited to share how this technology can help you cut down on chargebacks!

is a Mastercard platform for early dispute resolution accessible to merchants through API connections enabled by their acquirer or payment processor. 

Before, only participating issuers and merchants registered for Ethoca’s chargeback alert service had access to the Mastercom Collaboration tool. Since July 2022, a selected group of acquirers (including Solidgate Acquiring) has joined the workflow to make these alerts available for merchants and issuers who are not signed up with Ethoca. 

The Mastercom workflow looks similar to that of Visa RDR: Every time an MC network receives a transaction dispute request, the platform sends a pre-chargeback alert to Solidgate, and we automatically pass this information on to merchants.

As a merchant, you then have 72 hours to:

Unlike RDR, Mastercom Collaboration alerts do not trigger refunds by default. However, merchants using Solidgate Acquiring benefit from an integrated chargeback prevention system, allowing you to automate this process and set auto-refund rules following Collaboration alerts.

Both Visa RDR and Mastercom Collaboration are issuer-backed pre-chargeback notification systems that help resolve disputes before they escalate into chargebacks. Both Visa and Mastercard guarantee compliance with the dispute lifecycle, ensuring greater efficiency, coverage, and fewer false alerts.

However, there are some differences you should be aware of:

Receiving alerts directly from Mastercard allows you to resolve disputes with Mastercard users quickly and in a friendly manner, assuming you deem the claim valid. This system helps sharply reduce the number of dissatisfied customers and negative reviews of your product while boosting customer trust.

Reducing the amount of chargebacks whenever possible is in every merchant’s best interest for numerous reasons, even if it is through refunds. Receiving early dispute notifications through MC allows you to proactively issue refunds, stop shipping, cancel subscriptions, or take other appropriate measures before the issues escalate into official chargebacks.