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Card scheme's monitoring program

Card schemes (like Visa and Mastercard) monitor your dispute activity month by month, comparing it to your sales. 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 let you know if you’re at risk of being placed, or have been placed, on a program, and work with you to reduce your disputes.

We list the Visa and Mastercard’s monitoring programs below for you to have a better understanding of these program.

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 to:

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

The thresholds of both programs are listed below:

Monitoring Program

What is monitoring?

Threshold

VDMP
(Visa Dispute Monitoring Program)

Both:
1. CB ratio= CB count received on reported month/payment count of 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: $50000

 

Standard, if both:
1. Fraud Rate: 0.9%
2. Fraud amount: $75000

 

Excessive, if both:
1. Fraud Rate: 1.8%
2. Fraud amount: $250000

 

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: $50000

 

Standard, if both:
1. Fraud Rate: 0.9%
2. Fraud amount: $75000

 Mastercard Monitoring Program

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

The thresholds of both programs are listed below:

Monitoring Program

What is monitoring?

Threshold

ECP

(Excessive Chargeback Program)

Both:

1. CTR= CB count received on reported month/payment count of 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 50,000USD (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 preceding month)

- Penetration of 3DS transactions is less than 10% of the merchant’s CNP volume (non-regulated)/50% (regulated)