As part of having a merchant account, Qualpay and the Card Brands track your disputes (chargebacks) to sales ratio. In the Activity by Month section, the Dispute Dashboard reports an overview of your billing month’s total sales volume and count to dispute volume and count, respectively. Both Visa and MasterCard’s requirements are in Table 1.
The Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) apply to all businesses. The Visa Fraud Monitoring Program-3DS (VFMP-3DS) is a third program that applies to companies processing 3D Secure transactions. The MasterCard Chargeback-Monitored Merchant (CMM) and MasterCard Excessive Chargeback Merchant (ECM) programs apply to all businesses. Which program applies is based on the thresholds in Table 1. Each program has a Standard or Excessive ratio threshold. Fines may apply.
Qualpay will notify you before Visa and MasterCard’s established program thresholds. We will help identify root causes and develop an implementation plan to reduce disputes and improve your ratios.
Update for Visa Fraud Monitoring Program (VFMP) Standard
Effective October 16, 2020, Visa updated reason code 10.5 (a code specifically for VFMP). This update allows Issuers to initiate disputes for all months of the program, including the initial four (4) months during the “workout” period. Previously, Issuers would initiate 10.5 disputes in month five (5).
Issuers can initiate a dispute using reason code 10.5 after being notified by Visa that VFMP has identified the transaction. And as long as the Issuer had not successfully disputed the identified transaction under another dispute condition.
Non-Compliance Assessments (NCA) will be assessed as of April 2021 as follows:
Months 5-6 $25,000
Months 7-9 $50,000
Months 10-12+ $75,000
Table 1: Thresholds and Monitoring Programs
| Program | Program Thresholds |
|---|---|
| Visa Dispute Monitoring Program (VDMP) Early Warning | 75 or more disputes and 0.65% or higher dispute to sales count ratio |
| Visa Dispute Monitoring Program (VDMP) Standard | 100 or more disputes and 0.9% or higher dispute to sales count ratio |
| Visa Dispute Monitoring Program (VDMP) Excessive | 1,000 or more disputes and 1.8% or higher dispute to sales count ratio |
| Visa Fraud Monitoring Program (VFMP) Early Warning | $50,000 or more in fraud sales and 0.65% or higher fraud sales dollar to sales dollar ratio |
| Visa Fraud Monitoring Program (VFMP) Standard | $75,000 or more in fraud sales and 0.9% or higher fraud sales dollar to sales dollar ratio |
| Visa Fraud Monitoring Program (VFMP) Excessive | $250,000 or more in fraud sales and 1.8% or higher fraud sales dollar to sales dollar ratio |
| Visa Fraud Monitoring Program (VFMP) Early Warning 3DS | $5,000 or more in fraud sales and 0.50% or higher fraud sales dollar to sales dollar ratio |
| Visa Fraud Monitoring Program (VFMP) 3DS | $7,500 or more in fraud sales and 0.75% or higher fraud sales dollar to sales dollar ratio |
| MasterCard Chargeback-Monitored Merchant (CMM) | 100 or more disputes and 1.0% or higher dispute to sales count ratio |
| MasterCard Excessive Chargeback Merchant (ECM) | 100 or more disputes and 1.5% or higher dispute to sales count ratio |