May this post serve as a quick reminder on the latest updates in Chargeback and Fraud monitoring programs that cick in October the 1st 2019.
Visa Dispute Monitoring Program (formerly known as Visa Chargeback Monitoring Program) and Visa Fraud Monitoring Program lower the thresholds starting October 1st 2019 to 0.90%.
Thus merchants should be prepared to be measured as following:
Visa Fraud Monitoring Program
Early Warning 0.65% of sales volume and $50,000 fraud files
Standard 0.90% of sales volume and $75,000 fraud files
Excessive 1.80% of sales volume and $250,000 fraud files
Visa Dispute Monitoring Program
Early Warning 0.65% of sales transactions and 75 chargebacks
Standard 0.90% of sales transactions and 100 chargebacks
Excessive 1.80% of sales transactions and 1000 chargebacks
MasterCard Excessive Fraud Merchant Compliance Program (EFM)
Starts October the 1st 2019
This program focuses on merchants processing Mastercard in the US and measures Fraud Related Chargebacks, the following thresholds apply:
Starting with 1,000 Mastercard sales transaction in previous month
At least $50,000 fraud chargebacks reported (codes: 4837,4863,4871,4870,4840)
At least 0.50% fraud chargebacks-to-sales ratio
3D Secure volumes:
Less than 10% in non-regulated countries (Canada, USA)
Less than 50%in regulated countries (APAC countries, EU)
MasterCard will start issuing fines for this program starting March 2020. The fine will vary starting 600$.