Mastercard is extending its First-Party Trust program to Asia Pacific, Canada, Latin America, and the Caribbean in response to the growing issue of first-party or “friendly” fraud.
This type of fraud occurs when customers dispute legitimate transactions, resulting in chargebacks that are costly and time-consuming for businesses.
Initially launched in the United States, the program aims to support both large and small businesses by enhancing data sharing between merchants and card issuers.
This helps distinguish third-party fraud, where card details are used without consent, from disputes raised by cardholders.
Mastercard’s 2025 State of Chargebacks report estimates that global chargeback costs could reach US$42 billion by 2028, with nearly half deemed fraudulent.
Through the program, merchants can share enhanced transaction data either during authorisation or after a dispute is raised.
This includes information such as purchase history, device and identity details, delivery records, and location data.
The added transparency is intended to help issuers assess claims more accurately and reduce unwarranted chargebacks.
The initiative also introduces clearer guidelines on what qualifies as compelling evidence.
Merchants who meet the program’s data-sharing requirements may be eligible for chargeback protection.
Mastercard is also working with partners across the payments ecosystem to tackle broader first-party fraud issues, including refund and return abuse.
Earlier this year, the company formed an industry working group to address these challenges collaboratively.
“As e-commerce continues to evolve, businesses are increasingly able to create new consumer experiences, which underscores the need for a clear framework to manage complex disputes.
The First Party Trust program supports businesses and banks by facilitating the exchange of evidence, thereby streamlining the dispute resolution process and making it more time and cost-efficient.”
said Johan Gerber, Executive Vice President, Global Head of Security Solutions at Mastercard.
Featured image: Edited by Fintech News Singapore, based on image by Frolopiaton Palm via Freepik
