Mastercard has officially announced the expansion of its First-Party Trust programme across the European market. This initiative is designed to mitigate the growing impact of first-party fraud, a phenomenon more commonly known as “friendly” fraud.
Friendly fraud occurs when a cardholder initiates a dispute regarding a legitimate purchase. This can happen in two primary ways: either the consumer intentionally disputes a valid charge, or they fail to recognize the transaction on their billing statement, leading them to report it as unauthorized. By addressing these disputes, the programme aims to provide more clarity for consumers and reduce unnecessary friction in the payment ecosystem.
The expansion reflects Mastercard’s broader focus on improving transaction transparency and trust within digital payment systems. As the digital economy continues to grow, the company is prioritizing tools that help both merchants and cardholders better identify and verify transactions, thereby reducing the administrative and financial burdens associated with avoidable disputes.
Source: Finextra
Original article: https://www.finextra.com/pressarticle/111411/mastercard-expands-first-party-trust-programme-across-europe?utm_medium=rssfinextra&utm_source=finextrafeed
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