Operation Manual

MasterCard and Visa Programs
1 MasterCard and Visa Programs
The table set out below explains the five different MasterCard & Visa programs
related to Fraud and/or Chargebacks:
Program Minimum Thresholds Potential Fines
MasterCard
Excessive
Chargeback Program
• CTR in excess of
1%; and
• at least 100 chargebacks
in 1 calender month.
• USD 25 per chargeback above
the allowable threshold; and
• A large Violation element
based upon the Issuer
recovery element and basis
point score above the
accepted thresholds for that
month.
MasterCard Global
Merchant Audit
Program
• 3 fraudulent transactions;
and
• At least USD 3,000 in
fraudulent transactions;
and
• A fraud to sales dollar
volume ratio minimum of
3% and not exceeding
4.9%
• USD 25,000 for not submitting
a special merchant audit
questionnaire.
Visa Global Merchant
Chargeback
Monitoring Program
• the number of charge-
backs in a single month is
more than 200; and
• the ratio of these
chargebacks to the
merchant's transactions
in the same month is
more than 2%.
• USD 100 per chargeback
• USD 200 per chargeback if the
merchant has not
implemented procedures to
reduce chargebacks (after
month 4)
Visa Global Merchant
Fraud Program
• $25,000 of reported
fraud; and
• 25 fraud transactions;
and
• 2.5% fraud-to-sales ratio
• 1
st
: USD 5,000
• increased with an other USD
5,000 for every month on or
above the performance
thresholds
Visa Regional
Merchant Fraud
Program
• $15,000; and
• 15 fraud transactions;
and
• 7,5% fraud to dollar sales
ratio
• No financial penalty only
chargeback window
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