Card Network Rules Tighten, Requiring Increased Merchant Scrutiny

Merchants operating within the card payment ecosystem face increasingly stringent rules. Major card networks Visa and Mastercard have revised and intensified their monitoring programs, which measure fraud, chargebacks, and dispute volumes relative to total transaction volume.

Visa has consolidated its fraud and chargeback monitoring into a new program, the Acquirer Monitoring Program (VAMP). A key change is the reduction of the threshold to 1.5% effective April 1, 2026, significantly narrowing the margin for error for merchants. Visa is also expanding its oversight to include fraud detection, commonly known as card testing, intensifying pressure on e-commerce merchants.

Mastercard is also tightening its controls across multiple fronts. The Excessive Chargeback Merchant (ECM) program targets merchants whose chargeback rates exceed specific limits. Additionally, the Excessive Fraud Merchant (EFM) program specifically addresses e-commerce fraud, requiring a fraud rate of at least 0.50% for merchants with over 1,000 transactions. The new Scam Merchant Monitoring (SCAM) program, launching July 24, 2026, aims to rapidly identify and address fraudulent business models, particularly for newer merchants.

These adjustments signal that managing chargebacks alone is insufficient. Adherence to all card network standards is critical for merchant operations. While these programs focus on individual merchants, the card networks also monitor the financial institutions that onboard merchants. Visa's Global Risk Identification Program (GRIP) exemplifies efforts to identify broader risks proactively.