Mastercard is bringing a tool to Europe that helps banks tell real purchases from fraud, which could protect shops from losing money on genuine sales.
Mastercard is extending its First-Party Trust program to Europe. It is built for a common headache: a customer disputes a purchase they actually made, and the shop can lose the sale. The rollout starts in Eastern Europe, the Middle East and Africa in October 2026. The rest of Europe follows in July 2027.
The program goes after first-party fraud, often called friendly fraud. That is when a cardholder disputes a genuine purchase. Sometimes it is on purpose. Sometimes the person simply does not recognize the charge on their statement. It is different from third-party fraud, where someone uses card details without the owner's consent. European card-issuing banks will be able to tell the two apart when they review disputes.
Merchants, including small businesses, can share information with the issuing bank in two ways. They can send it with the transaction itself, or add it later during the dispute. Mastercard's fraud models also give banks risk signals. These point to likely third-party fraud and flag the transactions with the highest trust.
A chargeback is when money is pulled back from a seller after a customer disputes a payment.
Disputes are rising. A Mastercard-commissioned report expects 324 million chargebacks worldwide in 2028, up from a forecast of 261 million in 2025. Michele Centemero, Executive Vice President, Services Europe, at Mastercard, said that giving merchants and banks the transaction details they need can reduce unnecessary disputes. The aim is fewer avoidable chargebacks and lower costs of handling them.
The program first launched in 2024 in the US, Canada, Latin America, the Caribbean and the Asia-Pacific region.
The material does not say how merchants sign up, whether there is a fee, or how much money the protection will cover. Shops that sell to European customers should keep records of orders, delivery and buyer checks, and ask their payment provider how they can use the program.
If you sell to European customers, keep proof of purchase, delivery and buyer checks, and ask your payment provider how to share it under this program.
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