Mastercard's 2026 SMMP Update Increases Merchant Scrutiny
Mastercard's Scam Merchant Monitoring Program (SMMP), effective July 2026, will place greater pressure on merchants and payment providers to identify scam-related activity before significant losses occur.
Beginning July 2026, Mastercard's new Scam Merchant Monitoring Program (SMMP) will significantly increase pressure on merchants, ISOs, PayFacs, and acquiring banks to identify scam-related activity. Businesses that fail to adapt could face increased reserves, funding holds, enhanced underwriting, or account termination.
Unlike traditional fraud programs focused on stolen cards, SMMP targets transactions approved by cardholders but later linked to deceptive practices. This shifts focus beyond chargeback ratios to the merchant's actual business practices, including advertising, disclosure, and fulfillment.
New merchants, subscription businesses, card-not-present sellers, and aggressively marketed online offers are expected to face the closest scrutiny. Processors and acquiring banks will evaluate if a merchant's model creates confusion, excessive complaints, or unusual refund behavior, even before formal thresholds are breached.
The program aims to increase accountability across the entire payment ecosystem. Merchants are advised to review refund policies, subscription disclosures, customer support accessibility, and advertising practices. Transparency and operational consistency will be crucial for future success, as a good processing history alone may not suffice.