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Card scheme's monitoring program

Card schemes (like Visa and Mastercard) monitor your monthly dispute activity in relation to your sales volume. If the number of chargebacks you receive exceeds the levels deemed acceptable by the scheme, you may be placed on their monitoring program.

Once you’re on a program, the scheme can charge you monthly fines and additional fees, until you reduce the dispute activity back down to acceptable levels. We will notify you if you are at risk of or have been enrolled in such a program and collaborate with you in reducing your disputes.

In this document, we list Visa and Mastercard's monitoring programs to enhance your understanding of these programs.

Visa monitoring program

The Visa Dispute Monitoring Program (VDMP) and The Visa Fraud Monitoring Program (VFMP) are merchant-level dispute monitoring programs that are used for the following purposes:

  • Identify merchants with excessive levels of disputes.
  • Implement corrective plans to protect the integrity of the payment system.

The following table shows the thresholds of both monitoring programs:

Monitoring program

Monitoring metrics

Threshold

VDMP (Visa Dispute Monitoring Program)

Both:

1. CB ratio = CB count received on the reported month/payment count of the reported month

2. CB count

Early Warning, if both:

1. CB ratio: 0.65%
2. CB count: 75

Standard, if both:
1. CB ratio: 0.9%
2. CB count: 100

Excessive, if both:
1. CB ratio: 1.8%
2. CB count: 1000

VFMP

(Visa Fraud Monitoring Program)

Both:

1. Fraud Rate = fraud amount received on reported month/payment amount of reported month

2. Fraud amount

Early Warning, if both:

1. Fraud Rate: 0.65%
2. Fraud amount: $50,000

Standard, if both:
1. Fraud Rate: 0.9%
2. Fraud amount: $75,000 

Excessive, if both:
1. Fraud Rate: 1.8%
2. Fraud amount: $250,000

VFMP -3DS (US only)

Both:

1. Fraud Rate = fraud amount received on reported month/payment amount of reported month

2. Fraud amount

Early Warning, if both:
1. Fraud Rate: 0.50%
2. Fraud amount: $50,000

 

Standard, if both:
1. Fraud Rate: 0.9%
2. Fraud amount: $75,000

 Mastercard monitoring program

Mastercard uses the Acquirer Chargeback Monitoring Program (ACMP) to monitor merchants that receive an excessive number of chargebacks monthly. Mastercard's ACMP consists of two programs, the Excessive Chargeback Program (ECP) and the Excessive Fraud Merchant (EFM) program.

The following table shows the thresholds of both monitoring programs:

Monitoring program

Monitoring metrics

Threshold

ECP

(Excessive Chargeback Program)

Both:

1. CTR = CB count received on the reported month/payment count of the preceding month

2. CB count

Chargeback-Monitored Merchant (CMM), if both:
1. CTR: 1%
2. CB count: 100

Excessive Chargeback Merchant (ECM), if both:

1. CTR: 1.5%-2.99%

2. CB count: 100-299

High Excessive Chargeback Merchant (HECM), if both:

1. CTR: 3%

2. CB count: 300

EFM

(Excessive Fraud Merchant Compliance Program)

 -

If all the following conditions are met:

  • Minimum of 1,000 e-commerce transactions in clearing
  • At least 50,000 USD (or local currency equivalent) in fraud chargebacks in a month
  • 0.50% fraud chargeback BPS in a month (Fraud CB count received on reported month/payment count of the preceding month)
  • Penetration of 3DS transactions is less than 10% of the merchant’s CNP volume (non-regulated)/50% (regulated)