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Changes to Visa Chargeback and Fraud Monitoring Programs 2.0

At Braintree, we continually strive to keep you on top of shake-ups in the payments industry and assist in optimizing your processing. Last year, we shared some changes to Visa chargeback and fraud monitoring programs, and now we’re happy to share new updates with you.

Summary

Visa has updated its chargeback monitoring (VCMP) and fraud monitoring (VFMP) programs in efforts to further improve efficiency. To help support chargeback and fraud remediation efforts, the criteria used to escalate merchants to the VCMP excessive threshold were revised, VCMP excessive fine assessments were updated, and caps to the number of chargeback and fraud amounts identified in a program were put in place.

There are three updated facets to the VCMP program and one updated facet to the VFMP, which are found below:

New VCMP excessive thresholds

Previous VCMP excessive threshold level: 500 chargebacks AND 2% chargeback-to-sales transactions count ratio in a given month

Current VCMP excessive threshold level: 1000 AND 2% chargeback-to-sales transactions count ratio in a given month

The VCMP standard threshold fines are unchanged.

The chargeback counts eligible for the excessive threshold level have been increased to 1000. If the account does not reach 1000 chargebacks and a 2% ratio, then according to these new rules the account will not be identified at this level of the program.

Updated VCMP excessive threshold fine assessment

Previous VCMP excessive threshold fines:

  • $100 per chargeback for notification months 1 through 6

  • $100 per chargeback for notification months 7 and 12

    Current VCMP excessive threshold fines: $50 per chargeback for notification months 1 through 12

    The VCMP excessive threshold fines are reduced to $50 per chargeback. This means that the $100 chargeback fee has been eliminated from the new rules.

    The VCMP standard threshold fines are unchanged.

    VCMP and VFMP caps

    VCMP chargeback cap: Visa will cap the total number of chargebacks at 10 per card number and merchant account. For example, if there were 50 chargebacks received for a single card under one merchant account, just 10 of them would be counted in the VCMP.

    VFMP fraud cap: Visa will cap the total number of reported fraud transactions at 10 per card number and merchant account. For example, if there were 50 fraud transactions received for a single card under one merchant account, just 10 of them would be counted in the VFMP.

    Our Disputes team is happy to assist you with questions about chargeback and fraud programs. Please send an email to disputes@braintreepayments.com to get in touch.

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    Pandora Gales Pandora is the Disputes Team Lead and has worked at Braintree for 5+ years. Loves cats and celebrity gossip blogs, avoids leaving the house without earrings, and hasn't met a potato she doesn't like. More posts by this author >>

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