Ethoca, a Mastercard company, announced the release of new research that reveals cardholders have a strong appetite for digital solutions that provide greater insight into their purchases. These digital solutions will improve customer experience as well as reduce disputes, chargebacks and false claims by delivering in-depth purchase information direct to cardholders through digital channels such as mobile banking applications.
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Ethoca and Aite Group Research Finds Cardholders Are Eager for Digital Solutions that Deliver Greater Purchase Transparency
According to the study, 72% of consumers engage with their financial service providers’ website or mobile application at least once a month. This makes the digital channel a critical avenue between them and their issuer – one that cardholders expect more from when it comes to information available on-demand. Furthermore, 96% of surveyed consumers expressed a preference for having more detailed transaction information available to provide increased clarity. The features identified by the 1,000+ surveyed consumers as being most valuable for alleviating transaction confusion are:
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- A picture of the printed receipt
- The date and location of delivery for online purchases
- A full list of products purchased
- A link to refund and return details for the purchase
With greater digital dependency, having real-time purchase details is critical for consumers, merchants and card issuers alike. These features not only improve the overall experience for cardholders – who no longer need to hunt for this information – but they can effectively reduce incidents of false claims where a cardholder files a dispute unintentionally.
False claims are a significant and growing problem for all stakeholders in the payments ecosystem. For digital goods merchants, rates can reach upwards of 80% and higher. One of the most common reasons: transaction confusion. Cardholders reviewing their online statements often have trouble deciphering the brief, unclear descriptions that accompany each transaction, or they mistake genuine transactions made by other members of their household for fraud. This uncertainty often leads cardholders to contact their card issuer to dispute unrecognized transactions.
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