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VISA Risk Compliance Programs

  • Updated

Context

Visa operates a suite of risk compliance programs to mitigate the impact of excessive fraud and dispute activity on the Visa payment system and its participants. These compliance programs also aim to reduce client operational expenses related to fraud and disputes and improve the cardholder experience.

Effective 15 April 2023, Visa will update its dispute and fraud monitoring programs to include international and domestic transactions in all program calculations in Europe.

 

What is the Visa Dispute Monitoring Program (VDMP) ?

The Visa Dispute Monitoring Program (VDMP) monitors sales and dispute count activity to identify merchants with excessive dispute activity.

Visa will include in the program any merchant that meets or exceeds the thresholds for the following criteria: number of disputes and dispute-to-sales count ratio.

  Dispute transactions Dispute rate
Early Warning ≥ 75 ≥ 0.65%
Standard ≥ 100 ≥ 0.90%
Excessive / High-Risk ≥ 1000 ≥ 1,80%

Find below the applicable monthly fees for each Program:

 

Non-Compliance Assessments for VDMP – Standard Program

Month Visa Action/Non-Compliance Assessment
Month 1 – 4
  • Workout Period (The Workout Period does not apply to High-Risk Merchants).
  • No non-compliance assessments apply.
Month 5 – 9
  • USD 50 per Dispute for every month the Merchant meets or exceeds the program thresholds.
Month 10 (and subsequent months)
  • USD 50 per Dispute for every month the Merchant meets or exceeds the program thresholds.
  • USD 25,000 review fee.
  • Visa may initiate Merchant disqualification processes against a Merchant.

 

Non-Compliance Assessments for VDMP – Excessive/High-Risk Program

Month Visa Action/Non-Compliance Assessment
Month 1 – 6
  • USD 50 per Dispute for every month the Merchant meets or exceeds the program thresholds.
Month 7 – 11
  • USD 50 per Dispute for every month the Merchant meets or exceeds the program thresholds.
  • From month 7 onwards: USD 25,000 review fee.
Month 12 (and subsequent months)
  • USD 50 per Dispute for every month the Merchant meets or exceeds the program thresholds.
  • USD 25,000 review fee.
  • Visa may initiate Merchant disqualification processes against a Merchant.

A Merchant will exit the VDMP if it is below the program thresholds for 3 consecutive months.

 

What is the Visa Fraud Monitoring Program (VFMP) ?

The Visa Fraud Monitoring Program (VFMP) monitors sales and fraud amount activity to identify merchants with excessive fraud activity.

Visa will include in the program any merchant that meets or exceeds the thresholds for the following criteria: amount of fraud and fraud-to-sales ratio.

 

  Amont of Fraud Fraud rate
Early Warning ≥ 50 000 $ ≥ 0.65%
Standard ≥ 75 000 $ ≥ 0.90%
Excessive ≥ 250 000 $ ≥ 1%

Find below the applicable monthly fees for each Program:

 

Non-Compliance Assessments for VFMP – Standard Program

Month Visa Action/Non-Compliance Assessment
Month 1 – 4
  • Workout Period (The Workout Period does not apply to High-Risk Merchants).
  • No non-compliance assessments apply.
Month 5 – 6
  • USD 25 000 per month.
  • 10.5 Dispute Condition Code liability for the fraud transactions associated with the monthly identification.
Month 7 – 9
  • USD 50 000 per month.
  • 10.5 Dispute Condition Code liability for the fraud transactions associated with the monthly identification.
Month 10 – 12 (and subsequent months)
  • USD 75 000 per month.
  • 10.5 Dispute Condition Code liability for the fraud transactions associated with the monthly identification.

 

Non-Compliance Assessments for VFMP – Excessive/High-Risk Program

Month Visa Action/Non-Compliance Assessment
Month 1 – 3
  • USD 10 000 per month.
Month 4 – 6
  • USD 25 000 per month.
  • 10.5 Dispute Condition Code liability for the fraud transactions associated with the monthly identification.
Month 7 – 9
  • USD 50 000 per month.
  • 10.5 Dispute Condition Code liability for the fraud transactions associated with the monthly identification.
Month 10 – 12 (and subsequent
  • USD 75 000 per month.
  • 10.5 Dispute Condition Code liability for the fraud transactions associated with the monthly identification.

A Merchant will exit the VDMP if it is below the program thresholds for 3 consecutive months.

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