first-party trust program

Securing the payments ecosystem against first-party fraud

Simplify disputes, control costs and accelerate approval rates without friction.

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data-sharing insights

Fighting back against first-party fraud

The First-Party Trust program addresses first-party or friendly-fraud by bridging the gap between parties to enable better data sharing. Merchants and issuers will now be equipped with the tools and technology to prove genuine purchases and prevent flawed disputes.

By using enhanced data to confirm the identity of the cardholder, First-Party Trust Program enables issuers and merchants to share information to help reduce cardholder confusion and more effectively spot instances of first-party fraud. By making additional data elements available during both the pre-authorization and -pre dispute stage, merchants and issuers can be more confident in addressing cases of first-party fraud, which can ultimately lead to better approval rates.

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TRUSTED TRANSACTION TRANSPARENCY

Why fight first-party fraud?

Merchants

Mitigate the financial impact of first-party fraud, including revenue and inventory loss, operational expenses, chargebacks and reputational damage.

Issuers

Leverage enhanced data to fuel fraud models and distinguish between first-party fraud and legitimate transactions higher up in the process, minimizing disputes with cardholders.

Consumers

Recognize transactions on online statements and enjoy a seamless, secure and frictionless experience.

FIGHT FIRST-PARTY FRAUD

Data driven confidence in identifying “friendly fraud”

Discover how we are enhancing transparency in the dispute process by seamlessly verifying genuine transactions while guarding against first-party fraud.

“With the First-Party Trust program, Mastercard is transforming the dispute experience and streamlining transactions for everyone involved. We're pleased to see this significant leap forward, reinforcing trust as the bedrock of the relationships between merchants and small businesses, issuers, acquirers, and most importantly, consumers.”

— John Drechny, CEO, Merchant Advisory Group

Frequently asked questions

What is first-party fraud?

First-party fraud occurs when a cardholder makes a legitimate purchase, receives the goods or services, and then claims it was fraud. This could be done out of confusion – they simply do not recognize the charge – or to defraud the merchant, taking advantage of the chargeback process to get a good or a service for free.

What is Mastercard's First-Party Trust program?

Mastercard’s First-Party Trust program seeks to eliminate first-party fraud from the payment ecosystem, creating a more equitable and balanced system for everyone. By making additional data elements available during both the pre-authorization and dispute stage, merchants and issuers can be more confident in spotting cases of first-party fraud, which can lead to better approval rates.

Why is Mastercard launching this program?

First-party fraud accounts for 75% of fraud experienced by online businesses – and it continues to grow. Because issuers lack the insight to confidently evaluate first-party fraud claims, merchants shoulder much of the financial burden, experiencing losses revenue, inventory and time processing chargebacks.

When will the program be available?

The Mastercard First-Party Trust program comes into effect in October 2024 in the United States.

How will the program work?

Merchants will have the option to share enhanced data and insights at the time of the transaction or at the time of the dispute. To qualify for liability protection under the program, merchants must send one data point from each of the following categories:

Device identity: IP address, device ID, fingerprint
Proof of delivery: Shipping address, email
Additional identity factors: Account ID login, phone number, device location, device name, billing address. This factor must be different than the previous data points already provided