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1. Merchant Chargeback Monitoring Program (MCMP)
The Merchant Chargeback Monitoring Program (MCMP) monitors chargeback
rates for all merchant banks and merchants on a monthly basis. If a merchant
meets or exceeds specified chargeback thresholds, its merchant bank is notified in
writing.
First notification of excessive chargebacks for a specific merchant is considered
a warning. If actions are not taken within an appropriate period of time to return
chargeback rates to acceptable levels. Visa may impose financial penalties on
merchant banks that fail to reduce excessive merchant-chargeback rates.
2. High-Risk Chargeback Monitoring Program (HRCMP)
The High Risk Chargeback Monitoring Program (HRCMP) is specifically targeted
at reducing excessive chargebacks by high-risk merchants. As defined by Visa,
high-risk merchants include direct marketers, travel services, outbound
telemarketers, inbound teleservices, and betting establishments.
HRCMP applies to all high-risk merchants that meet or exceed specified
chargeback thresholds. Under HRCMP, there is no warning period and fees may
be assessed to the merchant bank immediately if a merchant has an excessive
chargeback rate.
3. Global Merchant Chargeback Monitoring Program (GMCMP)
The Global Chargeback Monitoring Program (GMCMP) is operated by Visa
International and administered by each region. The program augments the
U.S. Merchant Chargeback Monitoring Program (MCMP) in effect today and is
intended to encourage merchants to reduce their incidence of chargebacks by
using sound best practices.
The GMCMP applies when a merchant meets or exceeds specified International
chargeback thresholds. Under GMCMP, there is no warning period and fees may
be assessed to the merchant bank immediately if a merchant has an excessive
chargeback rate.
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