Card Monitoring Programs Archives

What is SAFE?

SAFE, or System to Avoid Fraud Effectively, is MasterCard’s central hub for fraud claims. MasterCard requires all MasterCard issuers to report fraudulent activities at least once a month, and then creates reports for issuers and acquirers to help support their fraud prevention and security efforts.* *https://www.mastercard.com/elearning/safe/story.html

Visa Chargeback Monitor Program Enforcement and Chargeback Fee Assessment

As of January 2016, Visa changed their chargeback monitoring programs. Prior to January 2016, Visa had two distinct programs for merchants who have a high number of chargebacks: S. Merchant Chargeback Monitoring Program: U.S. merchants who were experiencing more than 100 chargebacks a month and a chargeback ratio over 1% were automatically enrolled. Merchants did […]

How is the required Visa chargeback threshold ratio calculated?

Visa divides the total number of chargebacks in the current month by the number of transactions in the same month.* Example: 100 (June chargebacks) / 5,000 (June sales transactions) = 0.02 or 2%. *https://usa.visa.com/dam/VCOM/download/about-visa/15-April-2015-Visa-Rules-Public.pdf

How does the Visa Chargeback Monitoring Program work?

The Visa Chargeback Monitoring Program is designed to support merchants in managing better business. As such, Visa expects all of its merchants to be fully up-to-date with its chargeback guidelines and regulations. Before we get into the details of the Visa Chargeback Monitoring Program, we suggest you download the Chargeback Management Guidelines for Visa Merchants. […]

How is the MasterCard Monitoring Program enforced and fees assessed?

MasterCard charges an issuer reimbursement fee and violation assessment to the acquiring bank of an Excessive Chargeback Merchant. First, the issuer reimbursement fee is calculated by multiplying the total number of chargebacks above 150 basis points by $25. To determine the number of chargebacks above the threshold 150 basis points, subtract 1.5 percent of the […]

How is the required MasterCard chargeback threshold ratio calculated?

The chargeback threshold ratio (CTR) is calculated by dividing a merchant’s total number of first chargebacks for a particular month with the previous month’s total number of sales transactions. The monthly chargeback threshold ratio (CTR) is not to exceed 100 basis points (which may also be shown as 1% or 0.01). Example: 1,500 (July chargebacks) […]

How does the MasterCard monitoring program work?

MasterCard’s chargeback monitoring program is designed to track a merchant’s chargeback activity and quickly determine if the merchant is nearing or has exceeded the monthly chargeback threshold. If a merchant exceeds a 100-basis point chargeback threshold for one month, it is labeled a Chargeback Monitored Merchant, and remains as such until the number is reduced […]

What are the card brand monitoring programs?

Each credit card company has a set of rules and regulations that merchants must be familiar with. It is expected by these credit card companies that by accepting their brands for payment of your goods you will comply with their system of rules and regulations. This is done to ensure that the credit card brand, […]

What should I know about Visa’s recent compelling evidence process?

To provide a successful chargeback representment case, Visa and other credit card companies allow (indeed, they urge) merchants to provide compelling evidence to support their case. The details on the allowed compelling evidence are included with the reason code description and details. Remember that each credit card company has its own distinct list of reason […]