Visa Announces Lower Chargeback Thresholds

Visa has announced stricter chargeback rules affecting its dispute monitoring programs for both merchants and acquiring banks.

Effective October 1st, 2019, the allowable sales-to-chargeback ratios will be lowered under the Chargeback Monitoring Program (VCMP) and Acquirer Monitoring Program (VAMP), two compliance efforts that help merchants and acquirers keep dispute and fraud activity to a minimum..

The VCMP, which applies to individual merchants, currently allows for 100 chargebacks/month (that won’t change) with a maximum sales-to-chargeback ratio of 1% (that changes to 0.9%).

The VAMP, which applies to Acquiring bank portfolios, currently allows for 750 total chargebacks/month (that won’t change) with a maximum sales-to-chargeback ratio of 1% (that changes to 0.75%).

Segpay will be prepared for these changes and, if necessary, will contact specific merchants with more details well in advance of the October effective date.

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