Practical guide of chargeback and fraud management for e-commerce merchants
Each merchant accepting credit or debit cards, as a method of payment, needs to follow various rules imposed upon them by card associations. The two biggest associations (i.e. Visa and Mastercard) have a comprehensive set of rules for whichever situation involving either card present or card absent transactions. In this post, I will review chargeback and fraud monitoring programs, established by Visa and Mastercard. These monitoring programs are aimed at the elimination of fraud and controlling disputed transactions (also called chargebacks). Card schemes have established certain thresholds upon exceeding which, merchants will be obliged to pay additional fees and penalties. The penalties in question are monthly fines and additional fees, which must be paid until chargebacks and/or fraud levels are reduced below thresholds. Image source: chargebacks911.com Visa monitoring programs For the past couple of years, Visa was continuously lowering the thresholds for an acceptabl