Mastercard plans to expand its First-Party Trust programme in Europe as well as in Middle East and Africa to help merchants and card issuers distinguish fraudulent transactions from disputed legitimate purchases.
The programme addresses first-party fraud, also known as “friendly” fraud. This occurs when a cardholder disputes a legitimate purchase, either deliberately or because they do not recognise it on their statement.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
First-Party Trust allows merchants, including small businesses, to share transaction information with issuers. They can provide these details as part of a transaction or during the disputes process.
Mastercard said better access to evidence could reduce “unnecessary chargebacks” and the associated costs for both merchants and issuers.
At authorisation, Mastercard’s fraud models provide signals intended to help issuers distinguish unauthorised use of card details from first-party fraud.
The signals identify transactions that may involve third-party fraud and flag those with the highest levels of trust.
When a purchase is disputed, merchants can provide evidence relating to the transaction, including purchase, delivery and authentication information where available and appropriate. The programme also sets out rules for evidence that issuers can use when reviewing disputes.
Mastercard said merchants may receive chargeback protection when a dispute meets its First-Party Trust evidence-sharing requirements.
Mastercard Services Europe executive vice president Michele Centemero said: “As digital commerce continues to grow, building trust across the ecosystem has never been more important.
“By helping merchants and issuers access relevant transaction information needed to review disputed purchases, we can reduce unnecessary disputes while strengthening confidence across the payments ecosystem.”
First-Party Trust was launched in the US, Canada, Latin America, the Caribbean and Asia-Pacific in 2024.
The programme will become available in Eastern Europe, the Middle East and Africa this month, followed by a wider European rollout in July 2027.
