You're paying for chargeback alerts but still getting hit with disputes you never saw coming. Here's why: you're probably only protected on one card network while customers pay with both. Ethoca and Verifi aren't competing services. They're complementary networks owned by the two biggest card brands. Missing one means missing a significant portion of your potential alerts. For most merchants, that's not just a coverage gap. It's leaving money on the table every month.
What Are Ethoca and Verifi?
Ethoca and Verifi are chargeback alert networks that notify you when a customer disputes a transaction, giving you a chance to issue a refund before it becomes an official chargeback. The catch? Each one only works with its parent company's card network.
Here's the breakdown:
- Ethoca (owned by Mastercard) covers Mastercard disputes
- Verifi (owned by Visa) covers Visa disputes
- Neither network crosses over to the other card brand
Think of them like two separate highways. If you're only on one, you're missing everyone traveling on the other route. Since Visa accounts for approximately 70% of U.S. card transaction volume and Mastercard represents roughly 30%, using just one chargeback alert network means you're only catching disputes from one card network while your customers use both.
Why Card Network Coverage Actually Matters
Your transaction volume doesn't just come from one card type. According to industry data from The Nilson Report, Visa holds approximately 70% market share of combined U.S. card transaction volume, while Mastercard accounts for about 30%. If you're only using Verifi for Visa coverage, you're completely blind to disputes from Mastercard customers, which could represent nearly a third of your transactions.
What this means for chargeback protection:
- Missing Mastercard alerts = unresolved disputes that become chargebacks
- Missing Visa alerts = same problem, different network
- Each chargeback costs you the sale amount plus $20-100 in fees
- High chargeback rates can trigger payment processor penalties
The math gets brutal fast. If you process 10,000 transactions monthly with a 1% dispute rate, you're looking at 100 potential chargebacks. With only Ethoca coverage (Mastercard-focused), you might catch 30 disputes early, missing 70 Visa disputes that could have been prevented. With only Verifi coverage, you'd catch most Visa disputes but miss nearly all Mastercard disputes. The chargebacks you miss from your uncovered network still hit your account, costing you $3,000-8,000 in fees alone.
Regional Variations You Need to Know
Card preference isn't the same everywhere. While the U.S. market leans heavily toward Visa, this changes depending on your market and customer base. European customers lean heavily toward Mastercard, while Asia-Pacific markets show more varied preferences.
Coverage considerations by region:
- U.S. domestic merchants: Visa represents the majority of transactions, but Mastercard coverage is still critical for roughly 30% of volume
- International sellers: Mastercard coverage becomes more important in Europe and other non-U.S. markets
- Subscription businesses: Payment method on file determines which network matters most
If you sell globally, your transaction mix might skew differently from domestic averages. Check your payment processor reports to see your actual Visa-to-Mastercard ratio before deciding on alert coverage.
Cost vs. Coverage: The Real Decision
Alert services charge per notification, typically $20-40 per alert depending on your provider. The question isn't whether you can afford both networks. It's whether you can afford to miss preventable chargebacks.
Let's run the numbers. Say you get 30 chargeback alerts monthly. With both networks, you're paying $600-1,200 in alert fees. But each prevented chargeback saves you the transaction amount plus fees. If your average transaction is $75, preventing 30 chargebacks saves you $2,250 in merchandise costs plus another $600-3,000 in chargeback fees.
When might single-network coverage work:
- You process transactions overwhelmingly on one card network based on your actual payment data
- Your dispute rate is extremely low
- Your average transaction value makes alert fees cost-prohibitive
For everyone else, partial coverage creates expensive blind spots. The chargebacks you miss from your uncovered network don't disappear. They just hit harder because you never had a chance to resolve them.
How to Analyze Your Transaction Mix
Pull your payment processing reports for the last 90 days and break down transactions by card brand. Most processors include this data in your monthly statements or analytics dashboard.
What to look for:
- Percentage of Visa vs. Mastercard transactions
- Average transaction value by card type
- Current dispute rate per network
- Regional patterns if you sell internationally
If Mastercard represents a significant portion of your volume but you only have Verifi coverage, you're missing chargeback alerts on a meaningful percentage of your disputes. Even if Mastercard is only 20-30% of your transactions, those represent real chargebacks with real costs.
Some businesses discover their higher-value transactions tend to come through one card network more than the other. If your Mastercard transactions average $150 while Visa averages $50, missing Mastercard alerts costs you more per dispute.
Making the Coverage Decision
Most merchants with substantial transaction volume need both chargeback alert networks. The coverage gap created by using only one network rarely justifies the cost savings, especially once you factor in chargeback fees, processor penalties, and lost merchandise.
Full coverage makes sense when:
- Both card networks represent meaningful portions of your transactions
- Your average order value makes preventing chargebacks cost-effective
- You're approaching payment processor chargeback thresholds
- You sell in multiple regions with different card preferences
The risk with partial coverage isn't just the immediate chargeback costs. Climbing chargeback rates can trigger monitoring programs from card networks, leading to fines, increased processing fees, or even losing your merchant account. Missing alerts from either network means higher chargeback ratios that could've been avoided.
Reduce Chargebacks with Complete Alert Coverage
Getting hit with preventable chargebacks because you're only covered on one card network is frustrating and expensive. Most merchants don't realize they're missing disputes until the damage is done.
Chargeblast connects you to both Ethoca and Verifi chargeback alert networks, giving you complete chargeback protection across all card brands. When a customer disputes a transaction, you get instant notifications regardless of whether they paid with Visa, Mastercard, or other supported networks. Resolve disputes before they become chargebacks, protect your merchant account, and stop paying fees on preventable disputes.
FAQ: Chargeback Alert Coverage
Do I really need both Ethoca and Verifi?
If both Visa and Mastercard represent portions of your transaction volume, having both chargeback alert networks provides comprehensive protection. Given that Visa accounts for approximately 70% of U.S. transactions and Mastercard about 30%, most merchants process both card types.
Can Verifi alerts cover Mastercard disputes?
No, Verifi only works with Visa transactions, and Ethoca primarily focuses on Mastercard disputes.
How much do chargeback alerts typically cost?
Most providers charge $20-40 per alert, but preventing one chargeback saves you the transaction amount plus $20-100 in fees.
What happens to disputes on my uncovered network?
They skip the chargeback alert phase entirely and go straight to chargebacks, costing you more in fees and counting against your chargeback ratio.
How do I check my Visa vs. Mastercard transaction split?
Review your payment processor's monthly statements or analytics dashboard. Most include transaction breakdowns by card brand.
Stop Missing Disputes with Chargeblast
Your customers use both Visa and Mastercard. Your chargeback protection should cover both networks. Chargeblast gives you complete chargeback alert coverage across Ethoca and Verifi, helping you catch disputes early and reduce chargebacks before they damage your merchant account. See how much you could save with full network coverage. Start protecting your business today.
