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What You Need To Know About The Latest VISA Fraud And Chargeback Programs

If you’re owner a business, it’s likely you’ve dealt extensively with the various credit card companies in managing chargebacks for your organization. In order to mitigate instances of fraud and further streamline their service to business owners, VISA has recently announced updates to their fraud and chargeback programs. In this latest article, we provide a comprehensive overview on what you need to know about the latest changes to the system.

Visa Fraud

The Two New Chargeback Monitoring Programs

VISA currently operates regional and global programs to manage chargebacks for their customers. These programs will now be consolidated into two new monitoring programs: the VISA Chargeback Monitoring Program, and the VISA Fraud Monitoring Program.

What Changes are Being Made?

Under the new programs there are a number of significant changes that business owners will experience when handling potential fraud and chargebacks. These changes include the following:

  • Streamlined Identification

    To help minimize lag within the system, the new programs will be based on reported fraud and sales related to the previous month. This will help reduce the current 60-to-90-day response timeframe.

  • Greater Fee Alignment Across all Markets

    By removing their regional system, VISA Inc. is determined to align fees across all VISA Inc. marketplaces across the globe. Timelines and performance metrics will also be standardized across the entire VISA marketplace, to provide a high quality, consistent service to global clientele.

  • Changes to Rules and Policies

    Under the two new programs, business merchants will be designated as either standard merchants or high-risk merchants. Businesses such as outbound telemarketing organizations may be designated as high risk merchants. While other organizations outside high risk industries may become high-risk merchants as a result of exceeding specific fraud and chargeback thresholds.

  • New Fraud and Chargeback Monitoring Thresholds

    The changes to the fraud and chargeback monitoring thresholds require a comprehensive overview by business owners. Without a clear understanding on the changes made in this area, business owners may find their organization the subject of increasing fees. For example, a fraud rate of 2% in any given month may lead to significant fees for the owner. While a chargeback rate 2% or higher could incur a fee per incident for the owner.

By understanding the latest changes to the VISA fraud and chargeback programs, business owners can reduce the risk to their organization and align their business practices with the latest industry rules. To discuss this topic with a specialist, contact our team today.

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