- Founded
- 2005-01-01 in Toronto, Ontario, Canada
- Headquarters
- Toronto, Ontario, Canada
- sales@ethoca.com
- Phone
- +353 16 59 9484
Ethoca Limited is a global provider of collaboration‑based fraud prevention and chargeback resolution technology, now operating as a Mastercard company. Founded in 2005 and headquartered in Toronto, Canada, Ethoca created the first and only network of its kind that enables card issuers, e‑commerce merchants, and online businesses to share fraud intelligence in near real time. By closing the information gap that traditionally existed between issuers and merchants, Ethoca helps reduce chargebacks from both fraudulent transactions and legitimate customer service disputes, while also preventing false declines. Its flagship products—Ethoca Alerts, Ethoca Eliminator (which includes the Digital Receipt service), and Ethoca Consumer Clarity—allow merchants to receive early warnings of suspected fraud so they can stop shipments or issue refunds before a chargeback is initiated. The Ethoca Network now connects over 8,000 merchants and more than 5,075 financial institutions across 70+ countries, processing millions of transaction insights daily. In 2019, Mastercard acquired Ethoca to integrate its capabilities into Mastercard’s broader cybersecurity and fraud management suite. As a wholly owned subsidiary, Ethoca continues to operate from its Toronto base, delivering solutions that lower operational costs for merchants and issuers while improving the online payment experience for consumers.
Detailed Review
History & Founding
Ethoca was founded in 2005 by Andre Edelbrock and Trevor Clarke. The company recognised that the traditional chargeback process—where disputed transactions could take weeks to reach a merchant—was fundamentally broken. In physical goods fraud, by the time a merchant learned of a problem, the product had often already been shipped. Ethoca’s solution was to create an intermediary network that allows card issuers to send confirmed fraud or dispute data to merchants in real time.
Core Products
The core product, Ethoca Alerts, was launched in the late 2000s and enables issuers to alert merchants about suspicious transactions immediately. The merchant can then refund the customer or stop shipment, avoiding the chargeback altogether. Ethoca Eliminator, introduced around 2017, adds a digital receipt service that sends purchase details directly to the cardholder’s bank app, reducing “friendly fraud” where customers forget or don’t recognise a legitimate transaction. Ethoca Consumer Clarity (branded under Mastercard) extends this capability for broader consumer transparency.
Growth and Funding
The company grew through a strong network effect: as more issuers and merchants joined, the data pool became more valuable, driving adoption. Ethoca raised approximately $45 million in venture funding, with a Series A from Spectrum Equity before its acquisition.
Acquisition by Mastercard
Mastercard announced the acquisition in April 2019, closing in Q2 2019. The deal was valued below $1 billion (undisclosed). Ethoca now operates as a Mastercard business, maintaining its brand and Toronto headquarters while leveraging Mastercard’s global reach, AI capabilities, and data insights. Post-acquisition, Ethoca’s solutions are integrated with Mastercard’s security suite, including Mastercard Decision Intelligence and Brighterion.
Market Presence
Ethoca serves a cross‑section of large online merchants, issuers, and fintech partners. Its network is particularly strong in North America and Europe, with expanding presence in Asia‑Pacific. The Ethoca Network now connects over 8,000 merchants and more than 5,075 financial institutions across 70+ countries, processing millions of transaction insights daily.
Key Products
Ethoca Alerts
Real‑time alerts from card issuers to merchants about suspected fraud or disputes, allowing immediate action to prevent chargebacks.
Ethoca Eliminator
A suite that sends digital transaction details to cardholders’ bank apps, reducing confusion and friendly fraud; includes Digital Receipt service; launched ~2017.
Ethoca Consumer Clarity
A Mastercard‑branded consumer service that provides transparent purchase information via banking channels.