Visa to extend CNP Unsecure Fraud Dispute Fee to include card-on-file transactions

Tuesday 29 September 2020 08:38 CET | News

Visa has announced that effective the 1st of October 2020 it will extend the card-not-present (CNP) Unsecure Fraud Dispute Fee to include card-on-file transactions in Europe.

This fee is already charged on eligible chargebacks for regular ecommerce transactions. Per the effective date, the fee will be applicable for every non-authenticated CNP fraud chargeback with the following characteristics:

  • the transaction was acquired and issued in Europe;
  • the transaction took place within a non-secure environment (e.g. no 3DS);
  • the transaction chargeback is requested by the issuer for fraud reasons;
  • the issuer has not been reported under the Visa Fraud Monitoring Program (VFMP) for excess fraud.

On the 1st of October, the current fee of EUR 12 per eligible fraud chargeback will be charged on card-on-file transactions as well.
MRC is working with the card networks to get regular briefings on rule changes they believe will have a material impact in our industry. Many merchants now use multiple acquirers and the rule changes are communicated differently between each acquirer and getting to the core of the rule change can sometimes be challenging. Specifically, MRC would like to know the reason behind the rule change, the impact to the merchants and to work collaboratively with the card networks to address problems the change creates.


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Keywords: Visa, chargebacks, fraud dispute fee, merchants, MRC, card-on-file, ecommerce
Categories: Fraud & Financial Crime
Countries: Europe
This article is part of category

Fraud & Financial Crime