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.*     *http://www.mastercard.com/elearning/safe/story.html

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 […]