If you’re in the VFMP, Visa is essentially noting that fraud is a persistent problem for you. A written statement from the cardholder explaining that they are no longer disputing the transaction.A dispute was already accepted for this transaction.You processed a refund prior to the dispute.Visa takes that number and applies it against a fraud “threshold.” This threshold marks the point at which you become subject to the program:Īside from VFMP-3DS, you may only contest disputes resulting from the 10.5 reason code if you can provide proof of one or more of the following: This is factored by comparing the dollar value of the transactions you lost to fraud over the specified month, relative to the total value of transactions conducted during the same period. Calculating Your VFMP Merchant ThresholdĮntry into the Visa Fraud Monitoring Program is based on your Visa fraud rate. Also, as the largest credit card network in the world, Visa are within their rights to dictate rules within their network. It’s not unreasonable, though after all, if you’re the common denominator. Thus, VFMP is Visa’s way of forcing you to examine your core business practices for hidden fraud triggers and incentivizing the necessary changes which would prevent these incidents. If you consistently exceed Visa’s predetermined “acceptable” level for fraud, Visa will assume that your fraud detection practices need adjustment in some way. But, if you're unable to get your chargeback rate under the acceptable threshold after those first four months, Visa will begin assessing fines and fees for every chargeback you receive. For the first four months, you won’t have to worry about any penalties or additional fees associated with the VFMP. When you've moved into the VFMP, Visa will require you to develop a mitigation plan with your acquiring bank to address your rising chargeback problem. You can be inducted into both programs at the same time. A counterpart program, t he Visa Dispute Monitoring Program, may apply to both fraud- and non-fraud-related reason codes. If you’re inducted into the Visa Fraud Monitoring Program, it’s typically because you’re experiencing a high volume of fraud-related Visa disputes. The program aims to help merchants manage their criminal fraud risk and, in turn, protect the larger payments environment. What is the Visa Fraud Monitoring Program?Īs the name implies, the Visa Fraud Monitoring Program, or VFMP, is a merchant monitoring initiative administered by Visa. Merchant Monitoring Program: The Last Chance for Chargebacks.Closed Merchant Account? Here's What to Do.The Chargeback MATCH List: How to Avoid Being Blackisted.

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Visa Dispute Monitoring Program: What is the VDMP?.

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