Data analytics is one of the most appreciated tools today, due to its ability to transform and modernise many different sectors. Among them, the banking sector stands out, where data plays a crucial role. That’s why, in this article, we introduce you to the Mastercard AN 4569 regulation, which obliges its providers in Europe to improve the visualisation and accuracy of merchant payment data.

The Mastercard AN 4569 of 2021 refers to those rules that Mastercard has established for its card providers in Europe. The main objective is to streamline and improve the visualisation of merchant data in payment transactions, increasing accuracy and improving the use of information in the payment data environment.

Under these revised rules, providers are required to implement measures that improve data visibility. This includes ensuring that customers have access to enriched information about transactions processed through the Mastercard network.

Banks and card providers must now check that their system structures can enrich payment data in accordance with the updated regulation. This opens the opportunity for fintechs to bring their advanced technology to the industry to effectively comply with this regulation, saving time and costs for financial institutions.

One of the main objectives of the Mastercard AN 4569 is to reduce chargebacks. Chargebacks occur when a customer disputes a transaction with their bank, which results in the bank having to decide whether to refund it to the customer. Chargebacks not only result in financial losses for banks, but also undermine trust in the payment ecosystem and damage merchants and customers.

Several studies have shown the importance of having a solution in order to reduce the cost of chargebacks. For example, Mastercard estimates that merchants incur operational costs of between $15 and $70 for each payment dispute. Moreover, according to the Aite Group and Ethoca study, the cost of payment returns is expected to exceed $1 billion by 2023, up from $690 million in 2020.

In addition to reducing chargebacks, these new rules offer other benefits such as:

1. Increased fraud detection and prevention: By having access to payment data with greater accuracy, banks can better identify suspicious patterns or anomalies in transactions.

2. Improved customer experience: Enhances the customer’s relationship with the bank by reducing confusion and frustration related to payment disputes or discrepancies.

3. Improved operational efficiency: Improved visualisation and accuracy of payment data not only benefits customers and banks, but also improves the efficiency of the entire payments’ system.

Mastercard’s AN 4569 represents an important step forward in the processing of payment data. Mastercard aims to improve the visualisation of payment data, reduce chargebacks, improve fraud detection and increase the overall efficiency of payment processing.

While the implementation of these standards may require an initial investment by banks, the long-term benefits in terms of reduced losses, improved customer confidence and increased operational efficiency make it well-worthwhile. As the banking industry continues to embrace data analytics to drive growth and competitiveness, compliance with regulations such as AN 4569 will become increasingly essential to succeed in the market.

If you are interested in payment data enrichment solutions, contact us or request your demo directly.