Frequently Asked Questions
What is the Mastercard Excessive Fraud Merchant program?
The Mastercard Excessive Fraud Merchant program is a program of penalties and restrictions that Mastercard uses to discourage merchants from allowing their fraud rates and volumes to exceed certain thresholds.
How did I get put in the Mastercard Excessive Fraud Merchant program?
Merchants are placed in the Excessive Fraud Merchant program if they meet or exceed all four of the following criteria for any two (consecutive or nonconsecutive) months: processing 1,000 e-commerce transactions, $50,000 in fraud-related chargebacks, 50 basis points, and use of 3D-Secure on fewer than 10% of their monthly transactions.
How do I get out of the Mastercard Excessive Fraud Merchant program?
Merchants are removed from the Mastercard Excessive Fraud Merchant program if they stay below the thresholds for all four necessary criteria for three consecutive months.
What is the difference between the Mastercard Excessive Fraud Merchant program and the Mastercard Excessive Chargeback Program?
They are different parts of the broader Acquirer Chargeback Monitoring Program, each designed to address different problems. The Mastercard Excessive Fraud Merchant program discourages merchants from allowing too much fraud while the Mastercard Excessive Chargeback Program discourages merchants from allowing too many chargebacks, regardless of their source. The basic structure of the programs are superficially similar but the details are tailored to each specific concern.
What are basis points?
Basis points are a metric that Mastercard calculates in order to track how much of a merchant’s transactions are fraudulent. It is a different way of representing the same information demonstrated by fraud ratio.
How are basis points calculated?
Mastercard calculates basis points by taking the number of fraud-related chargebacks in a month and dividing them by the total number of e-commerce transactions from the previous month then multiplying by 10,000.