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Visa Dispute Monitoring Program

Visa Dispute Monitoring Program (VDMP) is used as both a penalty for excessive disputes and a corrective effort to help manage disputes more effectively.

Visa® carefully monitors the risk that individual merchants pose to the brand. If certain risk metrics exceed predetermined thresholds, the card network will enroll the merchant in the Visa Dispute Monitoring Program.

How Does Visa Measure Risk?

Visa uses two benchmarks to evaluate risk: number of disputes and the dispute-to-transaction ratio. Merchants who breach both of these thresholds are enrolled in the Visa Dispute Monitoring Program.

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Visa chargeback ratio calculation

Two Program Types: Standard and Excessive

VDMP has two program types.

Standard Program
The standard program is used to manage merchants who receive 100 or more disputes in a month and have a dispute-to-transaction ratio of 0.9% or above.

Excessive Program
The excessive program is used to manage three groups of merchants:

  • Merchants with a high-risk MCC (merchant category code) who receive 100 or more disputes in a month and have a dispute-to-transaction ratio of 0.9% or above.
  • Merchants without a high-risk MCC who receive 1,000 or more disputes in a month and have a dispute-to-transaction ratio of 1.8% or above.
  • Merchants who Visa thinks cause undue harm to the payment system.

Additional VDMP Details

  • All disputes — except 10.5 Visa Fraud Monitoring Program — are counted against the thresholds.
  • If a merchant moves from the standard program to the high-risk program, the merchant stays in the high-risk program until exit — there is no downgrading to the standard program when counts decrease.
  • If the merchant changes acquirers while enrolled in the VDMP, program management will transfer to the new acquirer.
  • A merchant can exit the program when counts are below thresholds for three consecutive months.

Need Help Managing Chargebacks & Disputes?

Kount simplifies the dispute process for the entire payment ecosystem.

If you are a merchant, Kount has the tools you need to reduce disputes and abide by thresholds. We can help you exit the Visa Dispute Monitoring Program and avoid enrollment in the future.

If you are an acquirer or processor, Kount can help you identify the source of disputes to better manage them. The technology enables unparalleled transparency.

Sign up for a demo of Kount today.

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