7.4. MC/VISA/AmEx Fraud Regulation

Definitions

Country ID

Country

CTR

MasterCard’s or Visa’s Chargeback-to-Transaction Ratio

FSDVR

MasterCard’s Fraud-to-Sales Dollar Volume Ratio

FSR

Visa’s Fraud-to-Sales Ratio

GMAP

MasterCard’s Global Merchant Audit Program

CMM

MasterCard’s Chargeback-Monitored Merchant

ECM

MasterCard’s Excessive Chargeback Merchant

MCMP

Visa’s Merchant Chargeback Activity Monitoring

HRCMP

Visa’s High Risk Chargeback Monitoring Program

GMCMP

Visa’s Global Merchant Chargeback Monitoring Program

GMFPP

Visa’s Global Merchant Fraud Performance Program

RMFPP

Visa’s Regional Merchant Fraud Performance Program

International transaction

Transactions where the card was issued in the different country then the merchant is located

Regional transaction

Transactions where the card was issued in the same region as the merchant is located

Elecsnet Flags and EFT possible Penalties

EFT

PNE Flag

Conditions

Penalties

MasterCard

CMM

  • CTR 1.00%

  • Chargebacks
    Count 100

  • Period calendar month

  • Report Submission Fee USD 50

  • Late Report
    Submission Fee USD 5,000 per month

  • Chargeback Fee USD 0

MasterCard

ECM

  • CTR 1.50%

  • Chargebacks
    Count 100

  • Period two consecutive calendar months

  • Report Submission Fee USD 100

  • Late Report
    Submission Fee from USD 500 to USD 1,000 per day
  • Chargeback Fee USD 25 for Chargebacks exceeded 1.5%

  • Period first through
    sixth month

  • Report Submission Fee USD 100

  • Late Report
    Submission Fee from USD 500 to USD 1,000 per day
  • Chargeback Fee USD 25 for Chargebacks exceeded 1.5%

  • Period seventh through twelfth month

  • Report Submission Fee USD 100

  • Late Report
    Submission Fee from USD 500 to USD 1,000 per day

  • Chargeback Fee USD 25 for Chargebacks exceeded 1.5%

  • USD 50,000 per month after 12 months

MasterCard

GMAP Step 1

  • FSDVR 3.00 - 4.99%

  • Frauds Count 3

  • Frauds Amount USD 3,000

  • Period calendar month

  • Chargeback any fraud transaction NO

MasterCard

GMAP Step 2

  • FSDVR 5.00 - 7.99%

  • Frauds Count 4

  • Frauds Amount USD 4,000

  • Period calendar month

  • Chargeback any fraud transaction NO

MasterCard

GMAP Step 3

  • FSDVR 8.00%

  • Frauds Count 5

  • Frauds Amount USD 5,000

  • Period calendar month

  • Chargeback any fraud transaction YES

  • MasterCard, at its sole discretion, may extend the chargeback liability period to 12 months

Visa

MCMP

  • CTR 3.00%

  • International (or Regional)
    Chargebacks Count 100

  • Period any month

  • Chargeback Fee USD 0

Visa

GMCMP

  • CTR 2.00%

  • International (or Regional)
    Chargebacks Count 200
  • International (or Regional)
    Transaction Count 200

  • Period months 1-3

  • Chargeback Fee USD 0

  • Period months 4-9

  • Chargeback Fee USD 100 - USD 200

  • Period beyond month 9

  • Chargeback Fee USD 100 - USD 200

  • Penalty USD 25,000

Visa

HRCMP Step 1

  • CTR 2.00%

  • Period months 1-3

  • Chargeback Fee USD 100

  • Period months 4-6

  • Chargeback Fee USD 150

  • Period month 7 and
    subsequent months

  • Chargeback Fee USD 150

  • Penalty disqualify

Visa

HRCMP Step 2

  • CTR 4.00%

  • International (or Regional)
    Chargebacks Count 3000

  • Merchant is assessed US $1 million or more in GMCMP fees

  • Period any month

  • Penalty disqualify

Visa

GMFPP Step 1

  • FSR 2.50%

  • International Fraud
    Transaction count 25
  • International Fraud
    Transactions amount USD 25,000
  • Period month 1-3

  • Period month 3
    and above

  • Penalty USD 5,000 + USD 5,000 for every next month

  • Chargeback any fraud transaction YES

Visa

GMFPP Step 2

  • FSR 2.50%

  • International Fraud Transactions
    amount USD 250,000
  • Period month 1
    and above

  • Penalty USD 5,000 + USD 5,000 for every next month

  • Chargeback any fraud transaction YES

Visa

RMFPP Step 1

  • FSR 7.50%

  • Regional Fraud Transaction count 15

  • Regional Fraud Transactions
    amount USD 15,000
  • Period month 1-3

  • Period month 3
    and above

  • Chargeback any fraud transaction YES

Visa

RMFPP Step 2

  • FSR 20.00%

  • Regional Fraud Transaction count 20

  • Regional Fraud Transactions
    amount USD 40,000
  • Period month 1
    and above

  • Chargeback any fraud transaction YES

AmEx

AECP

  • CTR 3.00%

  • Period 3 months and above

  • USD 5 per Disputed Charge if the
    Merchant is in the Immediate Chargeback Program
  • USD 15 per Disputed Charge if
    the Merchant is not in the Immediate Chargeback Program

Fraud programs description

MasterCard Excessive Chargeback Program

MasterCard designed the Excessive Chargeback Program (ECP) to encourage each Acquirer to closely monitor, on an ongoing basis, its chargeback performance at the Merchant level and to determine promptly when a MasterCard Merchant has exceeded or is likely to exceed monthly chargeback thresholds.

See ECP Manual

ECP Definitions

MasterCard’s Chargeback-to-Transaction Ratio (CTR)
The CTR is the number of MasterCard chargebacks received by the Acquirer for a Merchant in a calendar month divided by the number of the Merchant’s MasterCard sales Transactions in the preceding month acquired by that Acquirer. (A CTR of 1% equals 100 basis points, and a CTR of 1.5% equals 150 basis points.)
MasterCard’s Chargeback-Monitored Merchant (CMM)
A CMM is a Merchant that has a CTR in excess of 100 basis points and at least 100 chargebacks in a calendar month.
MasterCard’s Excessive Chargeback Merchant (ECM)
A Merchant is an ECM if in each of two consecutive calendar months (the “trigger months”), the Merchant has a minimum CTR of 150 basis points and at least 100 chargebacks in each month. This designation is maintained until the ECM’s CTR is below 150 basis points for two consecutive months.
Tier 1 ECM
A Merchant is a Tier 1 ECM during the first through sixth month (whether consecutive or non-consecutive) that the Merchant is identified as an ECM.
Tier 2 ECM
A Merchant is a Tier 2 ECM during the seventh through twelfth month (whether consecutive or non-consecutive) that the Merchant is identified as an ECM.

MasterCard Global Merchant Audit Program

The Global Merchant Audit Program (GMAP) uses a rolling six months of data to identify MasterCard Merchant locations that, in any calendar month, meet the following criteria set.

See SPME Manual

Tier 1 - Informational Fraud Alert

  • Three fraudulent Transactions

  • At least USD 3,000 in fraudulent Transactions

  • A fraud-to-sales dollar volume ratio minimum of 3% and not exceeding 4.99%

Tier 2 - Suggested Training Fraud Alert

  • Four fraudulent Transactions

  • At least USD 4,000 in fraudulent Transactions

  • A fraud-to-sales dollar volume ratio minimum of 5% and not exceeding 7.99%

Tier 3 - High Fraud Alert

  • Five fraudulent Transactions

  • At least USD 5,000 in fraudulent Transactions

  • A fraud-to-sales dollar volume ratio minimum of 8%

MasterCard, at its sole discretion, may extend the chargeback liability period to 12 months. MasterCard reserves the right to list the Acquirer ID, Acquirer name, Merchant name, Merchant location, and chargeback liability period of any Tier 3 Merchant in a Global Security Bulletin. When MasterCard lists the Acquirer and Merchant information in a Global Security Bulletin, Issuer chargeback rights will apply. Each Issuer then has a right to use message reason code 4849 - Questionable Merchant Activity to charge back to the Acquirer some fraudulent Transactions.

MasterCard’s Fraud-to-Sales Dollar Volume Ratio (FSDVR)
The FSDVR is the amount of MasterCard frauds received by the Acquirer for a Merchant in a calendar month divided by the amount of the Merchant’s MasterCard sales Transactions in the same month acquired by that Acquirer.

Visa Merchant Chargeback Activity Monitoring

Visa’s Chargeback-to-Transaction Ratio (CTR)
The CTR is the number of Visa chargebacks received by the Acquirer for a Merchant in a calendar month divided by the number of the Merchant’s Visa sales Transactions in the same month acquired by that Acquirer. Disputes related to Chargeback Reason Code 93, “Merchant Fraud Performance Program”, are excluded from program monitoring.

An Acquirer must monitor the Chargeback-to-Transaction volume ratio of its Merchants and identify any Merchant that:

  • Receives more than 100 Chargebacks per month

  • Exceeds a Chargeback-to-Transaction volume ratio of 3%

Visa Global Merchant Chargeback Monitoring Program Overview

Visa monitors Merchant Outlets and Acquirers that generate an excessive level of international Chargebacks through the Global Merchant Chargeback Monitoring Program, as noted below and as specified in the Visa Global Merchant Chargeback Monitoring Program (GMCMP) Program Guide. Disputes related to Chargeback Reason Code 93, “Merchant Fraud Performance Program,” are excluded from program monitoring.

A Merchant Outlet is identified in the Global Merchant Chargeback Monitoring Program if it meets or exceeds all of the following monthly performance activity levels:

  • 200 international Chargebacks

  • 200 International Transactions

  • 2% ratio of international Chargebacks to International Transactions

Visa may modify or create new monthly performance levels to respond to different Chargeback and fraud trends that emerge.

Global Merchant Chargeback Monitoring Program Handling Fees
Visa assesses an Acquirer a Chargeback handling fee of US $100 for each international Chargeback received for each identified Merchant Outlet once the Merchant has been placed in the Global Merchant Chargeback Monitoring Program. Visa collects the Chargeback handling fee from the Acquirer and disburses US $70 to the Issuer that initiated the Chargeback through the Visa Integrated Billing Statement. Visa retains the balance as an administration fee. If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer an increased Chargeback handling fee not exceeding US $200 for each international Chargeback received for its Merchant. Visa may, at its discretion, assess the Acquirer Chargeback handling fees for Trailing Chargeback Activity that occurs up to 4 months after Merchant termination, regardless of sales volume.
Global Merchant Chargeback Monitoring Program Penalties
Visa assesses Global Merchant Chargeback Monitoring Program penalties to the Acquirer, as described in the following tables.

Penalties for Global Merchant Chargeback Monitoring Program - Merchant-Level Thresholds

Merchant Outlet meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, in months 1-3 (month 1 = initial notification)

  • Workout Period 1

  • No fee

Merchant Outlet meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, in months 4-9

  • US $100 per international Chargeback for every month the Merchant meets or exceeds the program thresholds 1

  • If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer a fee of US $200 for each international Chargeback received for its Merchant 2

Merchant Outlet meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, beyond month 9

  • US $100 per international Chargeback for every month the Merchant meets or exceeds the program thresholds 1

  • If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer a fee of US $200 for each international Chargeback received for its Merchant 2

  • Acquirer is eligible for US $25,000 review fee

  • Visa may initiate Merchant disqualification processes against a Merchant Outlet and/or its principals

1 The Workout Period is not applicable for Acquirer-level thresholds, High-Risk Merchants, or High-Brand Risk Merchants, as specified in High-Brand Risk Merchant Category Codes

2 Visa allocates US $70 of each fee to the Issuer via a Funds Disbursement

Visa High Risk Chargeback Monitoring Program

A Merchant required to use one of the following Merchant Category Codes is considered high-brand risk:

  • 5962, “Direct Marketing-Travel-Related Arrangement Services”

  • 5966, “Direct Marketing-Outbound Telemarketing Merchants”

  • 5967, “Direct Marketing-Inbound Telemarketing Merchants”

  • 7995, “Betting, including Lottery Tickets, Casino Gaming Chips, Off-Track Betting, and Wagers at Race Tracks”

  • 5912, “Drug Stores, Pharmacies”

  • 5122, “Drugs, Drug Proprietaries, Druggist Sundries”

  • 5993, “Cigar Stores and Stands”, for Merchants that sell cigarettes in a Card-Absent Environment

Global Merchant Chargeback Monitoring Program - High-Brand Risk Merchants - Penalties
The following table specifies the penalties per international Chargeback for Acquirers of High-Brand Risk Merchants placed in the Global Merchant Chargeback Monitoring Program.

Merchant meets or exceeds the specified Chargeback ratio 1

  • Months 1-3

  • US $100 per Chargeback per month for each identified Merchant Outlet 2

Merchant meets or exceeds the specified Chargeback ratio 1

  • Months 4-6

  • US $150 per Chargeback per month for each identified Merchant Outlet 2

Merchant meets or exceeds the specified Chargeback ratio 1

  • Month 7 and subsequent months

  • US $150 per Chargeback per month for each identified Merchant Outlet 2 and Visa may disqualify the Merchant from participation in the Visa Program

Visa may disqualify the Merchant from participation in the Visa Program if merchant meets or exceeds the specified Chargeback ratio 1 without an effective Chargeback reduction plan, and 2 of the following levels of Chargeback activity are reached:

  • Merchant’s Chargeback ratio is 2 or more times the specified Chargeback ratio (Single month)

  • Merchant is assessed fees for 3,000 or more Chargebacks (Single month)

  • Merchant is assessed US $1 million or more in Global Merchant Chargeback Monitoring Program fees (When reached)

1 The Chargeback ratio threshold is 2%

2 If the Acquirer and Merchant have not implemented procedures to reduce Chargebacks, Visa may assess the Acquirer a fee of US $200 for each international Chargeback received for its Merchant

Acquirer does not identify a High-Brand Risk Merchant with the correct Merchant Category Code, as specified in “High-Brand Risk Merchant Category Codes”

  • When violation occurs

  • US $25,000 per Merchant per month

Visa’s Global Merchant Fraud Performance Program

Applies if a merchant is located in one region and a card is issued in another region.

Visa’s Regional Merchant Fraud Performance Program

Applies to transactions where the card was issued in the same region as the merchant is located.

Visa’s Fraud-to-Sales Ratio (FSR)
The FSR is the number of Visa frauds received by the Acquirer for a Merchant in a calendar month divided by the number of the Merchant’s Visa sales Transactions in the same month acquired by that Acquirer.

American Express Chargeback Programs

See American Express Merchant Reference Guide - U.S.

Some chargebacks arise because merchants are placed in one of AmEx’s chargeback programs. The company may place you in any of these programs either upon signing your contract or at any time during the term of the agreement. These programs are:

Immediate Chargeback Program
This program allows AmEx to process a chargeback at any time a cardholder disputes a transaction, for any reason other than actual or alleged fraud and without having to first send you an inquiry. You may be placed in this program for one of the following three reasons:

  • You choose to enroll in this program to avoid receiving inquiries or disputes.

  • AmEx places you in this program if you meet the company’s criteria for disproportionate inquiries and chargebacks.

  • Your industry has historically had high rates of customer disputes (not necessarily resulting in chargebacks).

Partial Immediate Chargeback Program
Your enrollment in this program allows AmEx to process chargebacks below a predetermined amount, without having to first send you an inquiry at any time a cardholder disputes a transaction for any reason other than actual or alleged fraud. All disputes for charges that are above that predetermined amount will be processed under the standard policy. You may be placed in this program for one of these three reasons:

  • You choose to enroll in this program to avoid receiving inquiries for charges below a specific dollar amount.

  • Your AmEx agreement stipulates participation in this program.

  • Your industry has historically generated high rates of customer disputes.

Fraud Full Recourse Program
This program allows AmEx to issue chargebacks without first sending you an inquiry at any time it receives a cardholder dispute that is based on actual or alleged fraud. You may be placed in this program for one or more of the following reasons:

  • You are classified as a high-risk merchant.

  • AmEx receives a disproportionately high number of inquiries and chargebacks relative either to your prior history or to industry standards.

  • Your merchant account has been cancelled for being fictitious, prohibited or otherwise in violation of the agreement.

Be advised that the above list of reasons, for which you may be placed in one of AmEx’s chargeback programs, is not exhaustive. At its sole discretion, the company may place you in any one of them at any time.
Excessive dispute fee
If, in any three (3) months, the monthly ratio of Disputed Charges to gross Charges (less Credits) at an Establishment exceeds three percent, and thereafter in any month when the Establishment again exceeds this ratio, we may charge the Merchant a fee for each Disputed Charge in excess of this ratio.

  • $5 per Disputed Charge if the Merchant is in the Immediate Chargeback Program or

  • $15 per Disputed Charge if the Merchant is not in the Immediate Chargeback Program

Visa US Rules

Merchant Chargeback Monitoring Program - U.S. Region

Visa monitors the total volume of U.S. Domestic and International Interchange and Chargebacks for a single Merchant Outlet and identifies U.S. Merchants that experience all of the following activity levels during any month:

  • 100 or more interchange transactions

  • 100 or more Chargebacks

  • A 1% or higher ratio of overall Chargeback-to-Interchange volume

For the purposes of the U.S. Merchant Chargeback Monitoring Programs, if an Acquirer submits Interchange for a single Merchant Outlet under multiple names, Visa:

  • Groups the Merchant activity

  • Notifies the respective Acquirer of the Interchange grouping

Merchant Chargeback Monitoring Program Fees - U.S. Region

Visa assesses Merchant Chargeback Monitoring Program fees to a U.S. Acquirer, as described in the table below.

Merchant Chargeback Monitoring Program Fees - U.S. Region

U.S. Merchant Outlet meets or exceeds the Chargeback activity thresholds specified in “Merchant Chargeback Monitoring Program - US Region”

  • Initial Notification - month 0

  • No fee

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for the month following initial Notification

  • Notification - month 1

  • US $5,000 for failure to return completed documentation within 10 calendar days of the Notification letter date

  • US $1,000 per day until completed documentation is received

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for the second month

  • Notification - month 2

  • US $10,000 for failure to respond with an acceptable Chargeback reduction plan within 10 calendar days of the Notification letter date

  • US $1,000 per day until acceptable Chargeback reduction plan is received

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for months 3, 4, and 5

  • US $50 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 1

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for months 6 and 7

  • US $100 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 2

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds for months 8 and 9

  • US $25,000 review fee

  • US $100 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 2

U.S. Merchant Outlet continues to meet or exceed the Chargeback activity thresholds beyond month 9

  • US $100 per Chargeback for every month the Merchant continues to meet or exceed the Chargeback thresholds 2

  • Merchant and its principals eligible for disqualification proceedings, as specified in “Critical Chargeback Levels - U.S. Region”

1 Visa allocates US $40 of each fee to the Issuer via a Funds Disbursement

2 Visa allocates US $90 of each fee to the Issuer via a Funds Disbursement

High-Brand Risk Chargeback Monitoring Program Fees - U.S. Region

Visa assesses High-Brand Risk Chargeback Monitoring Program fees to a U.S. Acquirer, from the date of Notification, as described in the following table

During months 1-3, the Merchant meets or exceeds the Chargeback activity thresholds specified in “High-Brand Risk Chargeback Monitoring Program - U.S. Region”

  • US $ 5,000 review fee month

  • US 100 per Chargeback in months 1-3 1

During months 4-6, the Merchant meets or exceeds the applicable Chargeback ratios specified in 1 above

  • US $ 150 per Chargeback in months 4-6 2

  • US $ 25,000 review fee in month 6

After 6 months in which the Merchant has met or exceeded the Chargeback thresholds specified in “High-Brand Risk Chargeback Monitoring Program - U.S. Region”

  • Visa may disqualify the Merchant from participation in the Visa Program

1 Visa allocates US $90 of each fee to the Issuer via a Funds Disbursement

2 Visa allocates US $135 of each fee to the Issuer via a Funds Disbursement

Merchant Disqualification - U.S. Region
Visa may disqualify a U.S. Merchant specified in “High-Brand Risk Merchant Category Codes” from participating in the Visa Program if the Merchant:

  • Meets or exceeds a critical level of Chargeback activity, as determined by Visa

  • Acts with the intent to circumvent Visa programs

  • Causes harm to the Visa system

  • The Acquirer must pay a US $5,000 non-refundable fee and include it with the appeal letter

Acquirer Penalties

Acquirer Global Merchant Chargeback Monitoring Program

An Acquirer is identified in the Global Merchant Chargeback Monitoring Program if it meets or exceeds all of the following monthly performance activity levels:

  • 500 international Chargebacks

  • 500 International Transactions

  • 1.5% ratio of international Chargebacks to International Transactions

  • One or more Merchants in the program during the reporting month

Penalties for Global Merchant Chargeback Monitoring Program - Acquirer-Level Thresholds

Acquirer meets or exceeds the Chargeback activity thresholds as specified in Global Merchant Chargeback Monitoring Program Overview

  • US $25,000 for every month the Acquirer meets or exceeds the program thresholds

Acquirer meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, more than 3 times in a rolling 12-month period

  • US $50,000 for every month the Acquirer meets or exceeds the program thresholds

Acquirer meets or exceeds the Chargeback activity thresholds, as specified in Global Merchant Chargeback Monitoring Program Overview, more than 6 times in a rolling 12-month period

  • US $100,000 for each subsequent month the threshold is met or exceeded

  • Acquirer is eligible for the imposition of Risk Reduction Procedures as specified in Member Risk Reduction Requirements

  • Visa may apply additional fines for repetitive or willful violations, as specified in Repetitive Violations and Willful Violations

Acquirer Chargeback Monitoring Program - U.S. Region

Visa monitors the total volume of U.S. Domestic and International Interchange and Chargebacks for any U.S. Acquirer that experiences all the following activity levels during any month:

  • 500 or more interchange transactions

  • 500 or more Chargebacks

  • A 1% or higher ratio of overall Chargeback-to-Interchange volume

Visa assesses High-Brand Risk Chargeback Monitoring Program fees to a U.S. Acquirer, from the date of Notification, as described in the following table
Acquirer does not

  • Identify a High-Brand Risk Merchant with the correct Merchant Category Code

  • Register a High-Brand Risk Merchant

  • US $25,000 per Merchant per month

  • US $100,000 after 3 violations in calendar year and/or prohibition against signing High-Brand Risk Merchants 1

Acquirer knowingly signs a disqualified Merchant or any of the disqualified Merchant’s principals

  • US $250,000 per month until the Acquirer terminates the Merchant Agreement 1

1 Visa may impose conditions on Acquirers for violations of the U.S. Regional Operating Regulations, up to and including termination of the Acquirer program

Visa assesses Acquirer Chargeback Monitoring Program fees to a U.S. Acquirer, as described in the following table.

Acquirer Chargeback Monitoring Program Fees - U.S. Region

Acquirer knowingly attempts to circumvent the provisions of “Acquirer Chargeback Monitoring Program - U.S. Region”

  • US $25,000 assessed 60 calendar days after Notification to the Acquirer

Acquirer meets or exceeds the Chargeback activity thresholds specified in “Acquirer Chargeback Monitoring Program - U.S. Region”

  • US $25,000

Acquirer meets or exceeds the Chargeback activity thresholds more than 3 times in a rolling 12-month period

  • US $100,000 for each subsequent month that either threshold is exceeded

Acquirer has had 3 or more Merchants in the Merchant Chargeback Monitoring Programs for 6 consecutive months

  • Daily review fee of at least US $2,500, with a one-week minimum fee of US $17,500, assessed while a review of the Acquirer’s and/or Merchants’ Visa Card-related processing activities is being conducted, as specified in “Acquirer Processing Activity Review - U.S. Region”

Acquirer fails to take action on recommendations resulting from a review of the Acquirer’s and/or Merchants’ Visa Card-related processing activities

  • US $75,000 minimum

Acquirer Fraud Monitoring Program

Visa monitors an Acquirer to determine disproportionate fraud-to-sales ratios.

An Acquirer exceeding 3 times the worldwide or regional fraud-to-sales ratio for more than one quarter will be considered non-compliant and may be subject, but not limited, to the following fines and penalties:

  • Monetary fines specified in the applicable Visa Regional Operating Regulations

  • Temporary suspension of contracting with new Merchants

  • Termination of membership

Acquirer Fraud Performance Monitoring Program Penalty Schedule - AP Region and CEMEA Region

First violation

  • US $25,000

Second consecutive violation

  • US $50,000

3 or more consecutive violations

  • US $100,000 for every subsequent violation per quarter OR Visa may revoke or suspend the Acquirer’s license

Acquirer Fraud Monitoring Program Fines - U.S. Region

First month

  • US $25,000

Second month

  • US $50,000

Third month

  • US $75,000

Fourth and subsequent months

  • US $100,000

Risk Identification Service Online Conditions and Fees - U.S. Region

Visa may:

  • Impose conditions on a U.S. Acquirer if any of its Merchants are designated as an Identified Merchant by RIS Online

  • Assess a daily review fee of at least US $2,500, with a one-week minimum fee of US $17,500, if an onsite review is required

If Visa determines that a U.S. Acquirer or its Merchant changed, modified, or altered Merchant data in any way to avoid detection by Risk Identification Service (RIS) Online, Visa may assess a US $25,000 fee to the Acquirer for each occurrence identified.
Visa assesses the following fines, as specified in the table below, to a U.S. Acquirer after the 3-month Workout Period, as described in “Excessive Fraud Activity Notification - U.S. Region.”

Fine Period - month 1 1 Acquirer receives Excessive Fraud Activity Notification 2

  • US $10,000

Fine Period - month 2 or 3. Acquirer receives Excessive Fraud Activity Notification 2

  • US $25,000

Fine Period - month 4. Acquirer receives Excessive Fraud Activity Notification 2

  • US $50,000

Fine Period - month 5. Acquirer receives Excessive Fraud Activity Notification 2

  • US $75,000

Fine Period - month 6. Acquirer receives Excessive Fraud Activity Notification 2

  • US $50,000

Fine Period - beyond month 6. Acquirer receives subsequent Excessive Fraud Activity Notification(s) 2

  • US $100,000 per month * Merchant and its principal(s) eligible for disqualification proceedings, as specified in “Critical Chargeback Levels - U.S. Region”

1 The Risk Identification Service Online remediation process, including Notification requirements, is described in “Excessive Fraud Activity Notification - U.S. Region.”

2 An Identified Merchant must remain below RIS Online Notification thresholds that incur a fine for at least 3 consecutive months for the Acquirer to exit the fine period specified in this table.

Fraud reasons