MasterCard Global Merchant Audit Program
4 Visa Global Merchant Chargeback
Monitoring Programme
Visa separetly monitors international and country-to-country chargebacks. A
international transaction is for example when a UK based merchant sells goods to
a shopper with a French issued credit card. A country-to-country chargeback is
when an UK merchant received a chargeback from a shopper with an UK issued
card.
Visa Europe monitors International Transactions and Country-to-Country
Transactions to identify Merchants that generate excessive Chargebacks in
relation to these International Transactions and Country-to-Country Transactions.
Visa Europe measures the chargebacks received in a single month (irrespective of
the date the actual transaction took place) against the transactions received in
the same month.
The formula and an example of a calculation are set out below:
CTR = # of January Chargebacks
# of January Settled Transactions
Example Calculation Month
Chargeback Month January
# of January chargebacks 250
# of January transactions 7500
CTR 3.33%
Visa will place merchant's in their Excessive ChargeBack Program under two
criteria:
1. the number of chargebacks (international or country-to-country) in a single
month is more than 200; and
2. the ratio of these chargebacks to the merchant's sales (international or
country -to-country) in the same month is more than 2%.
A merchant that has ben placed in the Global Merchant Chargeback Monitoring
Programme will be granted a 3 month remediation period to reduce excessive
chargebacks (the remediation period is not applicable for high risk merchants).
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