Frequently Asked Questions
What is the Visa Fraud Monitoring Program?
The Visa Fraud Monitoring Program is a program of penalties and restrictions that Visa uses to discourage merchants from allowing their fraud rates and volumes to exceed certain thresholds.
How did I get put in the Visa Fraud Monitoring Program?
Merchants get put in the Visa Fraud Monitoring Program if their fraud ratio exceeds 0.9% and their fraud volume exceeds $75,000. There is an even more punitive excessive level for merchants with a fraud ratio in excess of 1.8% and fraud volume in excess of $250,000.
How do I get out of the Visa Fraud Monitoring Program?
Merchants are removed from the Visa Fraud Monitoring Program if they keep their fraud ratio below 0.9% for three consecutive months.
What is the difference between the Visa Fraud Monitoring Program and the Visa Chargeback Monitoring Program?
They are different programs designed to address different problems. The Visa Fraud Monitoring Program discourages merchants from allowing too much fraud while the Visa Chargeback Monitoring 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 is fraud ratio?
Fraud ratio is a metric that Visa calculates in order to determine if merchants have exceeded acceptable fraud rates.
How is fraud ratio calculated?
Visa calculates a merchant’s fraud ratio by dividing the amount of TC40 fraud alerts received in a given month by the amount of sales from that same month.