Card Association Chargeback Regulations
 

There has been considerable discussion on this board related to foreign chargeback levels and precisely what the card association regulations indicate. We hope you?ll find this information useful. In summary, the regulations state:

VISA, U.S. Region transactions went to a 1% chargeback level on October 1, 2003
VISA, Global (non-US) went to 2% on January 1, 2004
MasterCard Excessive Chargeback Program (US and Foreign) remains unchanged at 1% of chargeback count to Sales count -OR- 2.5% of chargeback dollars to sales dollars

Here is some added detail related to the above summary:

VISA US Region -
VISA?s High-Risk Chargeback Monitoring Program (HRCMP) MC Codes: 5962, 5966, 5967, 7995
- Identifies Merchants with 100 or more interchange transactions and 100 or more first presentment chargebacks and a 1% chargeback to sales ratio

Foreign VISA (Non-U.S. cards) -
Global Merchant Chargeback Monitoring Program (GMCMP)
- Effective January 01, 2004, the Global Chargeback Monitoring Program was revised as follows: Identifies Merchants with 200 or more international sales transactions and 200 or more international first presentment chargebacks.
2.0% international chargeback to international transaction ratio (reduced from 2.5%)

MasterCard Excessive Chargeback Program
Identifies merchants that have at least a minimum of 15 chargebacks and a ratio of chargeback transactions to total sales transactions of 1% or a ratio of chargeback dollar volume to sales volume of 2.5% for two consecutive calendar months and is designated as such by MasterCard at its discretion.

In addition, if in the opinion of MasterCard staff, the merchant has issued credits for any of the reasons or conditions listed below or to otherwise avoid the applicability of the Excessive Chargeback Program, MasterCard may deem the credits to be chargebacks for use in merchant performance evaluation.

Examples:
- Refunds issued in lieu of chargebacks, either before or after the initiation of the chargeback
- Refunds issued because of the merchant?s failure to control its backroom processes
- Refunds issued exceed the number of chargebacks received by the merchant
- Refunds issued by means of a check to resolve fraud or customer service issues

Through considerable effort on the part of iBill and its clients, together we have reduced our chargebacks levels to numbers well under the ratios dictated by the card associations. However, there is still considerable work to be done before the industry, as a whole, is secure in the fact that they are doing all they can to reduce chargebacks to the lowest possible levels. It is our goal, as a leading processor, to work with each client who desires to reduce their chargeback levels to acceptable levels.

Should you desire additional information related to this topic, please contact your iBill sales representative. As always, your business is greatly appreciated.

iBill Communications

Thanks for posting :thumbsup



Is it possible that Ibill will ever put (and keep) a friendly presense on GFY?

The past reps that have been here couldn't take the backlogged questions and heat & disappeared. :(

The other large IPSP's have a presense here to put out fires quickly -- hell, GFY members will even alert those reps on the first spark.

I think having a rep on the forums helps people feel more comfortable with their IPSP choice.

this is the scarry part that everyone needs to understand