Update for small ticket and digital goods monitoring on the Visa Fraud Monitoring Program

As you will be aware, Visa is expanding the Visa Fraud Monitoring Program (VFMP) to include small ticket items and digital goods. Originally planned to come into force from October 1, 2023, Visa has now extended the advisory period to April 1, 2024. 

From this date, the VFMP will include the following MCCs:

• 5735—Record Stores

• 5815—Digital Goods Media—Books, Movies, Digital artwork/images, Music

• 5816—Digital Goods—Games
  

• 5817—Digital Goods—Applications (Excludes Games)
  

• 5818—Digital Goods—Large Digital Goods Merchant

‍What does this mean for you?

Visa began to monitor fraud levels on these MCCs from April 1, 2023. If you exceed the thresholds, you may receive warning notifications from the card scheme after this date.

The full program will become operational from April 1, 2024, when you will be liable to be issued scheme assessments if you exceed the program thresholds.

What are the thresholds for the VFMP?

You will be notified and liable to be issued scheme assessments (fines) if you exceed any of the following thresholds from April 1, 2024:

• A monthly accumulated amount of $25,000 USD in fraudulent transactions

• 300 fraudulent transactions or over
  

• 0.9% fraud-dollar-to-sales-dollar ratio

Visa will also provide early warning notifications from April 1, 2023, if merchants exceed the lower thresholds of:

• A monthly accumulated amount of $15,000 USD in fraudulent transactions

• 150 fraudulent transactions or over
  

• 0.45% fraud $ USD amount to sales $ USD ratio

These notifications are to help provide you with the opportunity to reduce your fraud levels before the full program with scheme assessments is implemented.

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