2018 was the “Year of Change,” with more payment brand updates than we’ve seen in quite some time. From Visa Claims Resolution (VCR) and Visa Merchant Purchase Inquiry (VMPI), to 3D Secure 2.0 and MasterCard Dispute Resolution Initiative, the focus to reduce fraudulent and disputed transactions continues to evolve at a rapid pace.
As the most recent of these changes, Visa announced it will tighten qualifying thresholds for its Risk Monitoring Programs for merchants, effective October 1, 2019. The chart below details current and future program specifics:
| Before | As of October 1, 2019 | |
| Visa Fraud Monitoring Program (VFMP) | ||
| Standard Program | • USD 75,000 in fraudulent transactions AND • 1.0% fraud:sales ratio (dollars) |
• USD 75,000 in fraudulent transactions AND • 0.9% fraud:sales ratio (dollars) |
| Excessive Program | • USD 250,000 in fraudulent transactions AND • 2.0% fraud:sales ratio (dollars) |
• USD 250,000 in fraudulent transactions AND • 1.8% fraud:sales ratio (dollars) |
| Visa Chargeback Monitoring Program (VCMP) | ||
| Standard Program | • 100+ dispute count AND • 1.0% dispute:sales ratio |
• 100+ dispute count AND • 0.9% dispute:sales ratio |
| High-Risk Program | • 1000+ dispute count AND • 2.0% dispute:sales ratio |
• 1000+ dispute count AND • 1.8% dispute:sales ratio |
Tighter thresholds mean that even more merchants may be subject to being entered into one of Visa’s Risk Monitoring programs, which come with the potential for increased fines and other costs. It’s more important than ever to have risk mitigation and customer communication strategies in place that help to reduce fraud and disputes.
To keep fraud and dispute thresholds down, regularly review internal processes with a focus on vigilant customer communication and transparency. Check out our webinar, “Growing Customer Longevity in the Frictionless Age,” for recommended best practices.
We understand the challenges merchants face, and we are committed as your dedicated partner to keep you updated on industry changes. Be on the lookout for future updates, because as soon as we have them, we’ll be sure to keep you informed.