Ethoca Nets $45 Million in New Equity Investment
July 20, 2015
Ethoca, an antifraud technology provider that leverages relationships with issuing banks to alert merchants about disputes before they become chargebacks, on Thursday revealed it has raised $45 million from private equity firm Spectrum Equity. According to Keith Briscoe, chief marketing officer for Ethoca, the Boston-based investment firm was attracted to Ethoca’s value proposition that appeals to both issuers and merchants.
Briscoe said Ethoca will put the capital to use expanding its issuer network globally, enrolling merchants and establishing physical locations in new markets over the next two years including Germany, Spain, Portugal, Turkey, China, Southeast Asia, New Zealand, South Africa, Brazil and Mexico.
Additionally, he said the cash infusion will be used to build out a new product currently undergoing pilot testing. Merchants use Order Rescue to attack the problem of false positives by sending Ethoca the transactions they have in their manual review queue and those they are about to reject due to possible fraud. Ethoca sends those orders to the issuers of the cards used to make the transactions. The banks reach out to their customers in real time, who then confirm or deny they placed an order, giving the retailer a chance to act on the information.
“If that was a good order,” said Briscoe, “we’d be able to get that information through our network back to the merchant in real time and the merchant could still rescue that order and not insult the customer.”