# First-Party Trust Program
source: https://developer.mastercard.com/first-party-trust/product/first-party-trust/index.md

### Benefits {#benefits}

Provides merchants and merchant partners with a cost-effective program to reduce chargebacks resulting from first-party fraud, saving on associated dispute costs.
![Protection](https://static.developer.mastercard.com/content/first-party-trust/uploads/protection.svg)

###### Protection {#protection}

Shifts liability for dispute to issuer when merchant provides compelling evidence
![Integration](https://static.developer.mastercard.com/content/first-party-trust/uploads/integration.svg)

###### Integration {#integration}

Offers multiple implementation options for merchants and merchant partners to submit data
![Dispute resolution](https://static.developer.mastercard.com/content/first-party-trust/uploads/dispute_resolution.svg)

###### Dispute resolution {#dispute-resolution}

Helps issuers share data with cardholders to discuss and resolve disputed transactions

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### How it works {#how-it-works}

![How it works](https://static.developer.mastercard.com/content/first-party-trust/uploads/ftp_how_it_works_new.png)

#### Background {#background}

First-party fraud occurs when a consumer makes a legitimate purchase and then later requests a chargeback, even though the goods or services were received. First-party fraud occurs due to honest transaction confusion or intentional misuse of the dispute process.

#### First-Party Trust Program {#first-party-trust-program}

With the First-Party Trust program, a merchant or merchant partner shares historical data with Mastercard. Mastercard determines if that historical data provides compelling evidence that the cardholder authorized a currently disputed transaction. If Mastercard matches elements of the historical data with the currently disputed transaction, the merchant gains a liability shift to avoid the chargeback.
Compelling evidence is derived from historical data in three categories: Device Identity, Delivery Factor, and Additional Identity Factor. Mastercard must match one element from each of the three categories to establish compelling evidence and provide the liability shift to the merchant.

![Compelling-evidence](https://static.developer.mastercard.com/content/first-party-trust/uploads/First-Party-Trust-Compelling-Evidence-Categories.jpg)

#### Integration options {#integration-options}

To share historical data with Mastercard, a merchant or merchant partner chooses to integrate with the First-Party Trust program using at least one of the following options:

##### Merchant using Identity Check Insights {#merchant-using-identity-check-insights}

###### Step 1 {#step-1}

###### Integrating {#integrating}

Merchant or merchant partner integrates with First-Party Trust program using own 3DS server or 3DS Smart Interface API.

###### Step 2 {#step-2}

###### Sharing {#sharing}

Merchant or merchant partner shares data with Mastercard. Mastercard stores data on behalf of merchant or merchant partners.

###### Step 3 {#step-3}

###### Matching {#matching}

Mastercard matches data from the disputed transaction with two historical transactions.

###### Step 4 {#step-4}

###### Result {#result}

If First-Party Trust validates the compelling evidence, merchant benefits from liability shift.

##### Merchant using Ethoca Consumer Clarity Merchant Transaction API {#merchant-using-ethoca-consumer-clarity-merchant-transaction-api}

###### Step 1 {#step-1}

###### Integrating {#integrating}

Merchant integrates with First-Party Trust program using Ethoca Consumer Clarity Merchant Transaction API.

###### Step 2 {#step-2}

###### Sharing {#sharing}

When a chargeback occurs, Mastercard requests data for compelling evidence from the merchant or merchant partner via API.

###### Step 3 {#step-3}

###### Matching {#matching}

Mastercard matches data from the disputed transaction with two historical transactions.

###### Step 4 {#step-4}

###### Result {#result}

If First-Party Trust validates the compelling evidence, merchant benefits from liability shift.

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### Use cases {#use-cases}

![Pre-authorization](https://static.developer.mastercard.com/content/first-party-trust/uploads/predispute.svg)

###### Pre-authorization {#pre-authorization}

Share historical data with Mastercard for each transaction to provide compelling evidence in future disputes
![Pre-dispute](https://static.developer.mastercard.com/content/first-party-trust/uploads/predispute.svg)

###### Pre-dispute {#pre-dispute}

Share historical data with Mastercard to provide compelling evidence on demand for each disputed transaction
![Pre-authorization and pre-dispute](https://static.developer.mastercard.com/content/first-party-trust/uploads/preauth.svg)

###### Pre-authorization and pre-dispute {#pre-authorization-and-pre-dispute}

Leverage both processes for an increased rate of qualifying for the liability shift

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### Why use it {#why-use-it}

First-Party Trust helps merchants avoid having to absorb the growing costs of first-party fraud.

### 75 percent

Estimated percentage of card-not-present fraud claims that are the result of first-party fraud.

### 28 billion

Anticpated losses in USD due to first-party fraud on card-not-present transactions.

### 337 million

Estimated global chargeback transaction volume by 2026.

Source: Ethoca's Chargeback Trends and Outlook. 2023.

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**This product is available in the following languages:**

###### French Canadian {#french-canadian}

###### Programme de confiance de première partie {#programme-de-confiance-de-première-partie}

Programme de confiance de première partie utiliser les données pour
réduire la fraude de première partie.   

[Learn more](https://developer.mastercard.com/first-party-trust/product/fr-ca-first-party-trust/index.md)

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### Resources {#resources}

3DS Smart Interface API

Part of the Identity Check family of services, 3DS Smart Interface offers the ability for merchants to participate in the First-Party Trust program during authorization. For questions regarding this API, contact the [3DS Smart Interface team](mailto:3ds_smart_interface@mastercard.com).

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**Used
By** Merchants, Service Providers **Regions** United States **Supports** ![mastercard card](https://developer.mastercard.com/img/card_mastercard.svg) Ethoca Consumer Clarity Merchant Transactions API

Part of the Ethoca's product offerings, Consumer Clarity Merchant Transactions API offers the ability for merchants to participate in the First-Party Trust program when a chargeback is pending. For questions regarding this API, contact the [Ethoca product integration team](mailto:productintegration@ethoca.com).

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**Used
By** Merchants, Service Providers **Regions** United States **Supports** ![mastercard card](https://developer.mastercard.com/img/card_mastercard.svg)

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