Chargeback Monitoring Programs (Visa & Mastercard)

Chargeback Monitoring Programs

Visa and Mastercard watch dispute levels through formal monitoring programs. They look at how many chargebacks you get and how that compares to your sales for each merchant ID. If you go over the network limits, you can be placed in a program and must reduce disputes within a set time.

What they measure

• Dispute ratio. Chargebacks divided by sales in the period the network uses.

• Dispute count. Total number of chargebacks in a month.

• Scope. Usually tracked per merchant ID. Sometimes by region or business model.

What happens if you exceed limits

If you cross a threshold, your acquirer is notified. You may be enrolled in a program such as Visa VDMP or Mastercard Excessive Chargeback Program. While enrolled, you can face monthly fees, extra reviews, and required plans to bring ratios down. If the trend does not improve, you can face processing limits or account closure.

Why this matters

Being in a monitoring program raises costs and adds risk. You can face higher dispute fees, monthly assessments, payout holds, and new or larger reserves. If results do not improve, your acquirer may set processing caps, suspend a merchant ID, or close the account. In severe or repeated cases, you can be placed on MATCH, which makes opening new merchant accounts difficult.

The impact reaches revenue and cash flow. You lose product and shipping on many disputes, and double refunds can happen when a refund is issued and a chargeback follows. Reserves and payout delays make planning harder and can limit growth.

Keeping ratios below limits avoids added fees, protects approval rates, keeps your processing stable, and preserves a good relationship with your acquirer.