Mastercard is taking a bigger step in its effort to fight friendly fraud. The company is expanding its First-Party Trust program beyond the United States, bringing it to Canada, Latin America, the Caribbean, and parts of the Asia Pacific.
Friendly fraud happens when a cardholder disputes a charge they actually authorized. Sometimes it’s an honest mistake. Other times, it’s deliberate. Either way, the result is the same: a chargeback that hits the merchant with fees and potential losses.
The expanded program uses artificial intelligence and stronger data-sharing between banks and merchants to separate real fraud from valid transactions. Merchants now have the option to submit key details about a transaction, either when the purchase happens or when a dispute is filed. That extra context gives issuing banks a clearer picture before deciding how to handle the claim.
In its 2025 State of Chargebacks report, Mastercard estimates that merchants worldwide could face up to $42 billion in chargeback costs by 2028. Nearly half of that is expected to come from fraud-related disputes. The First-Party Trust program is designed to cut those numbers down by helping prevent bad disputes from moving forward in the first place.
Small businesses stand to benefit the most. Many don’t have the time, tools, or staff to deal with messy chargeback cases. With more access to issuer networks and the ability to present supporting data early in the process, these merchants are better equipped to push back when a dispute doesn’t add up.
Mastercard says the larger goal is to improve how both sides, banks and merchants, handle digital transactions. By encouraging more transparency, the company hopes to cut down on confusion, catch real fraud faster, and give merchants a fair shot at defending legitimate sales.
Chargeblast: A Smarter Way to Protect Against Friendly Fraud
Merchants using Chargeblast can take advantage of similar tools that support Mastercard’s First-Party Trust program. With built-in options to share transaction data quickly and clearly, Chargeblast helps businesses dispute claims more effectively, reduce chargeback costs, and avoid revenue loss tied to false fraud reports.
