Risk & Fraud Management
Be SMART when you manage Risk, and approve more orders!
With our 15+ years of experience and industry-leading expertise we can help you navigate PCI compliance, chargeback management and fraud prevention. Detect, prevent and stop fraud with customized tools tailored to your needs:
- AVS – rule based approach
- Velocity settings
- Customized risk rules
- IP to address verification
- Device fingerprinting
- 3D Secure – With a frictionless approach to eliminate checkout abandonment
- Ethoca and Verifi
- Custom Reports
- Analytics
Tokenize your Customers cards with a PCI DSS certified Gateway to give you peace of mind.
Keeping up to date with card regulation rules and compliance can be tough. Our Compliance team will ensure your business and website comply with all standards, and is PCI compliant and secure at all times.
Staying on top of chargebacks can be a challenge. Our online dispute system can automate the chargeback disputes process to ensure deadlines are met and chargebacks are resolved quicker. For larger merchants, daily transaction and chargeback data files can be downloaded via SFTP account. This will allow for auto importing records to internal CRM or Third-Party Gateway to block cards and auto generate dispute documentation for orders with matching refund.
Stay on top of changes to Chargeback and Fraud Monitoring Programs
The Card brands continues to make changes to its risk monitoring programs, and most recently VISA announced plans to toughen qualifying thresholds for the Visa Chargeback Monitoring (VCMP), and Visa Fraud Monitoring (VFMP) programs, to be effective October 1, 2019.
Merchants are monitored monthly by VISA and will be identified if it meets or exceed these guidelines.
Program
VCMP Standard Program
VCMP Excessive Program
VFMP Standard Program
VFMP Excessive Program
Threshold Criteria
• 100 or more in dispute count AND
• 0.9% or higher dispute count-to-sales count ratio
• 1000 or more in dispute count AND
• 1.8% or higher dispute count-to-sales count ratio
• USD 75,000 or more in fraudulent transactions AND
• 0.9% or higher fraud-to-sales dollar amount ratio
• USD 250,000 or more in fraud amount AND
• 1.8% or higher fraud-to-sales dollar amount ratio
Early Warning Notification will be issued to merchants when meeting qualification criteria. The intention is to give merchants the opportunity to work on a chargeback or fraud reduction plan to avoid escalation into VCMP or VFMP program.
Notification Type
VCMP Early Warning
VFMP Early Warning
Qualification Criteria
• 75 or more in dispute count AND
• 0.65% or higher dispute count-to-sales count ratio
• USD 50,000 or more in fraud amount AND
• 0.65% or higher fraud-to-sales dollar amount ratio
MasterCard’s Chargeback Monitoring Program is different from VISA, and the Network expects Acquirers and ISOs to monitor merchants monthly and report the numbers in the system. MasterCard Excessive Chargeback Program (ECP) monitor current months dispute count to previous months sales count, and there are two monitoring categories.
Category
Chargeback Monitored Merchant (CMM)
Threshold Criteria
• 100 or more in current month dispute count AND
• 1% or higher dispute count-to-previous month sales count ratio
A merchant earns CMM title monthly and encouraged to implement a chargeback reduction plan to avoid escalation.
Category
Excessive Chargeback Merchant (ECM)
Threshold Criteria
• 100 or more in dispute count AND
• 1.5% or higher dispute count-to-sales count ratio
A merchant earns ECM title monthly and penalties are assessed if thresholds are exceeded for two consecutive months. To exist the program, merchants needs to remain under threshold criteria for two consecutive months.
Similar to VISA’s VFMP, MasterCard monitor merchant’s monthly fraud activity and will issue notifications and request for a mitigation plan from merchants. Just like excessive chargeback levels, a merchant may be terminated if continuing to breach thresholds.
Violation
Tier 1
Tier 2
Tier 3
Threshold Criteria
• At least $3000 in reported fraud AND
• Fraud to sales count ratio between 3-4.99%
• At least $4000 in reported fraud AND
• Fraud to sales count ratio between 5-7.99%
• At least $5000 in reported fraud AND
• Fraud to sales count ratio great than 8%
There are times merchants are erroneously identified in these programs and PPO is experienced working with such cases. We assist our clients to analyze the situation and implement a mitigation plan to secure a long-standing relationship and merchant account.
Have questions?
About us
We are a registered ISO/MSP and Agent with multiple Acquirers’s and processing partners, offering merchant services both domestic and International.
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