Visa Cutting Chargebacks & Fraud Risks: Chargeback Insurance

Visa is making changes to its risk monitoring programs. The company has recently announced it’s working on making the eligibility thresholds stricter for the Visa Chargeback Monitoring (VCMP), and Visa Fraud Monitoring (VFMP) programs. The changes will come into effect on October 1, 2019. This article will tell you about the changes and help you with chargeback insurance.

Risk Monitoring Programs by Visa

It was 2016 when Visa restructured its Visa Fraud Monitoring Program (VFMP) and Visa Chargeback Monitoring Program (VCMP). The aim was to provide stronger protection for cardholders to fight fraud. Also, Visa aimed at protecting the integrity of the Visa payment system and delivering a standardized framework all around the globe.

Well, how do these programs defer? The 1st one is more associated with fraud, and the 2nd one with chargebacks. Both of them are based on cross-border transactions, meaning the review only inter- and intraregional transactions.

The VFMP is for keeping US-based accounts under monitoring so to lower chargeback fraud ratios. As soon as the amount reaches a set threshold, the company notifies the acquiring bank, and the merchant gets time to reduce the volume.

Given the new thresholds, Visa aims to make sure there’s nothing unethical about sales tactics. Also, the company wants to ensure PCI compliant systems are responsible for transactions being processed and data saved.

Merchants who’re already using strategies to reduce chargebacks and prevent fraud won’t experience any effects of these changes. Others will be more likely to enter one or both of the programs, thus ending up with more fines and administrative costs.

As for high risk merchants (MCC’s: 5962, 5966, 5967, 7995, 5912, 5122), the “excessive” Non-Compliance Assessments (fees/fines) will automatically be applicable to them. This will be true of even those who only break the “standard” threshold.

Cutting Chargeback and Fraud Ratios: Chargeback Insurance

Fraud and chargebacks aren’t going away. Today, it’s more vital than ever to minimize your risk exposure and prevent fraud attacks. When it comes to chargebacks, be aware that some 60-80% of all chargebacks come from friendly fraud.

Contemporary businesses can’t do without a much more proactive response to such threats. It’s critical to have a commitment to using smart technologies so to prevent fraud and mitigate chargebacks. That’s where reputable payment processors step in.

A reliable credit card processing company committed to offering the latest merchant services can help you with chargeback insurance. So, look for a true payments expert that can provide you with the right merchant services to combat fraud and reduce chargebacks.

So, eCommerce companies must be more focused on applying a holistic and proactive approach to prevent fraud. Otherwise, it won’t be easy to keep pace with the increasing demands of consumers and of payments companies such as Visa and MasterCard.

To sum up, the Visa Chargeback Monitoring and the Visa Fraud Monitoring Programs are 2 separate programs run by Visa. The company has introduced changes to these programs. To keep payment fraud and chargeback risks under control, find the right payment processor to work with.

Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can best help merchants interested in chargeback insurance. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.

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