Mastercard Expands First-Party Trust Program to Combat Friendly Fraud Across Europe

Mastercard is expanding its First-Party Trust program to Europe to combat "friendly fraud," where cardholders dispute legitimate purchases. For fintech professionals, this represents a significant shift in chargeback management, as the network introduces new data-sharing protocols and risk models to distinguish between genuine fraud and intentional or accidental customer disputes.

What was announced

Mastercard is expanding its First-Party Trust program to Europe to address the rise of first-party fraud, where cardholders dispute legitimate transactions. This trend is a growing concern as global chargeback volumes are forecast to reach 324 million transactions by 2028, up from 261 million in 2025. The program aims to increase transaction transparency by providing risk-model-driven insights to issuers during authorization and allowing merchants to submit evidence to assist in reviewing disputes.

The system offers two integration paths: merchants can share insights directly during the transaction or as part of the formal dispute process. Key features include fraud-risk signals to help issuers separate third-party theft from first-party disputes, and merchant-provided evidence covering purchase, delivery, and authentication details. New rules regarding "compelling evidence" will also be introduced to support issuers and potentially provide merchant chargeback protection for disputes that meet specific evidence requirements.

First-Party Trust is already active in the U.S., Canada, Latin America, the Caribbean, and the Asia Pacific region. The expansion timeline will see the program become available in Eastern Europe, the Middle East, and Africa in October 2026, with a full European rollout scheduled for July 2027. This phased approach allows the network to scale its fraud models across diverse regulatory environments.

"As digital commerce continues to grow, building trust across the ecosystem has never been more important. By helping merchants and issuers access relevant transaction information needed to review disputed purchases, we can reduce unnecessary disputes while strengthening confidence across the payments ecosystem."

Michele Centemero, Executive Vice President, Services Europe, at Mastercard

The companies involved

Mastercard is a global technology company in the payments industry, operating a primary network that connects consumers, financial institutions, and merchants. As a major card scheme, it occupies a central position in the financial ecosystem, setting the standards for how transactions are authorized and disputed. FF News has covered the organization extensively, with over 1,000 reports detailing its initiatives in security, digital assets, and market expansion.

The company functions as a critical intermediary between merchants and issuing banks, providing the infrastructure for both physical and digital commerce. Beyond its core card products, the firm has focused on developing services that enhance transaction security and data transparency. It operates independently with no parent company, maintaining its brand across global markets. Its role in the First-Party Trust program leverages its position as a data aggregator to provide the risk signals necessary for issuers to make more accurate decisions regarding disputed purchases.

What FF News has reported before

Mastercard has maintained a consistent focus on security and digital infrastructure in recent months. FF News recently covered how the company is addressing modern payment risks in Mastercard Launches Stablecoin Security to Combat Fraud in Digital Asset Payments. The organization has also been vocal about the broader threat landscape, as seen in the Mastercard Report: Africa’s Digital Economy to Hit $1.5 Trillion by 2030 Amid Rising Cyber Threats, which highlighted the need for cyber resilience. Additionally, the network continues to expand its reach through strategic partnerships, such as when Stoa Partners with Stripe and Mastercard to Launch Virtual Card Perks for Savers. These reports underscore a strategy centered on integrating security protocols directly into the payment flow.

What this means

The expansion of this program suggests the payments industry is reaching a breaking point regarding "friendly fraud." As chargeback volumes are projected to climb toward 324 million annually, manual dispute resolution is becoming unsustainable. By introducing risk-model-driven insights directly into the authorization flow, the industry is moving toward a "prevention over cure" model. This shift places pressure on merchants to maintain granular data on customer behavior to benefit from new "compelling evidence" rules. It also signals a move by card networks to reclaim control over the dispute ecosystem, which has seen a surge in third-party mitigation startups. The challenge will be balancing transparency with a seamless checkout experience to avoid false declines.