The Program: VCMP and VFMP identify acquirers of merchant outlets that generate a disproportionate volume of disputes or fraud relative to their sales volume. Typically, entities identified by these programs will have a dispute-to-sales count ration or a fraud-to-sales amount ratio that is at least four to five times greater than the Visa system average.
The Change: Effective October 1, 2019 Visa will reduce fraud and dispute thresholds for the Visa Fraud Monitoring Program, the Visa Chargeback Monitoring Program and the Visa Acquirer Monitoring Program. Visa will lower the VCMP and VFMP standard thresholds from 100 to 90 basis points and VAMP thresholds from 100 to 75 basis points.
The Impact: Merchants are strongly encouraged to review their fraud and dispute mitigation plans. Any merchant currently in one of the identified programs will receive an update on Visa’s plan during this transition.
Visa also recommends that merchants carefully review business practices used for free trial periods and/or recurring billing models to ensure the terms and conditions are properly disclosed to consumers and operate in compliance with the Visa rules.