Stay on top of changes to VISA Chargeback and Fraud Monitoring Programs

The Card brands continues to make changes to its risk monitoring programs, and most recently VISA announced plans to toughen qualifying thresholds for the Visa Chargeback Monitoring (VCMP), and Visa Fraud Monitoring (VFMP) programs, to be effective October 1, 2019. 

Merchants are monitored monthly by VISA and will be identified if it meets or exceed these guidelines.

Program

Threshold Criteria

VCMP Standard Program

• 100 or more in dispute count AND
• 0.9% or higher dispute count-to-sales count ratio

VCMP Excessive Program

• 1000 or more in dispute count AND
• 1.8% or higher dispute count-to-sales count ratio

VFMP Standard Program

• USD 75,000 or more in fraudulent transactions AND
• 0.9% or higher fraud-to-sales dollar amount ratio

VFMP Excessive Program

• USD 250,000 or more in fraud amount AND
• 1.8% or higher fraud-to-sales dollar amount ratio

 
Early Warning Notification will be issued to Merchants when meeting qualification criteria. The intention is to give Merchants the opportunity to work on a chargeback or fraud reduction plan to avoid escalation into VCMP or VFMP program.

Notification Type

Qualification Criteria

VCMP Early Warning

• 75 or more in dispute count AND
• 0.65% or higher dispute count-to-sales count ratio

VFMP Early Warning

• USD 50,000 or more in fraud amount AND
• 0.65% or higher fraud-to-sales dollar amount ratio


The Excessive Program thresholds are not be confused with High Risk registered MCC code Merchants, as such Merchants are monitored under the Standard Program threshold. The only common element between HR MCC Merchants and Excessive Merchants, is that they are subject to the same High Risk timeline for penalty assessments, which is month one (1).  If you are a Merchant concerned about these changes and how to manage your chargebacks, contact us and we will help you!