By default, merchants bear the financial liability for chargebacks. When a cardholder gets a charge reversed, the funds to make them whole again have to come from somewhere, and that somewhere is the merchant’s bank account. This can make it feel very frustrating when chargebacks seem to originate from cardholders who are reckless with their account security, or from issuing banks that don’t push back against the more dubious or outlandish claims of friendly fraudsters. Merchants are regularly monitored for fraud and excessive chargeback activity—it’s fair to ask, where is the oversight on the other end of the equation?

As of October 2019, Visa has expanded its scrutiny of issuing banks and their fraud rates. That means they’ll be taking a closer look at how many incidents of fraud and fraud-related chargebacks are coming from specific issuing banks, and enrolling banks that exceed their fraud threshold in the Visa Issuer Monitoring Program (VIMP) until they are able to reduce the number of fraudulent charges they’re authorizing.

Full Text:
https://www.chargebackgurus.com/blog/what-is-the-visa-issuer-monitoring-program-vimp

©Chargeback Gurus 2020
Production: Tyler DeLarm
Narration: Sarah Rife