Last month, CNP reported that Visa planned to tighten its Risk Monitoring Programs for merchants, a change the San Francisco-based card network quietly confirmed on April 13 when it published an updated version of its Visa Core Rules and Visa Product and Service Rules.
The updates to Visa’s merchant and acquirer fraud and dispute monitoring programs will go into effect on October 1, 2019. “Revisions have been made to the thresholds in the Visa Chargeback Monitoring Program (VCMP), Visa Fraud Monitoring Program (VFMP), and Visa Acquirer Monitoring Program (VAMP),” the update noted.
According to the notice, changes to Visa’s Chargeback Monitoring Program (VCMP) include:
Visa will identify a Merchant Outlet under the VCMP standard program if it meets or exceeds both of the following monthly standard program thresholds:
- 100 Dispute count
- Effective through 30 September 2019, 1 percent ratio of Disputes-to-Sales Transaction count
- Effective 1 October 2019, 0.9 percent ratio of Disputes-to-Sales Transaction count
Visa will monitor a Merchant Outlet identified in the VCMP under the high-risk program for any of the following reasons:
- The Merchant exceeds the standard program thresholds and is categorized or should be categorized by a high-brand risk MCC, as specified in Section 10.4.6.1, High-Brand Risk MCCs.
- For Merchants that are not and should not be categorized by a high-brand risk MCC, the Merchant meets or exceeds the VCMP monthly excessive Dispute threshold of both:
- 1,000 Dispute count
- Effective through 30 September 2019, 2 percent of Disputes-to-Sales Transaction count
- Effective 1 October 2019, 1.8 percent of Disputes-to-Sales Transaction count