Visa US recently purchased Visa EU, and the consequences have sent merchants scrambling on both sides of the Atlantic, particularly when it comes to managing fraud and chargebacks. While antiquated programs for managing fraud were due for some updates in the age of online commerce, it isn’t without some serious growing pains. With a sticker price of $23.4 Billion (with a ‘B’), the Visa acquisition is bound to drastically change the processing landscape.

First, let’s look at some other historical acquisitions in today’s dollars, for scale:

Suffice it to say that if most countries of the world tried to charge a purchase of that size, they would get declined.


On the surface, it can appear that this new Visa is doing you a favor. They’ve brought much needed reform to how they manage chargebacks. New Visa has merged all regional legacy programs into the Visa Chargeback Monitoring Program (VCMP), a single program with a single set of rules. The VCMP is now letting merchants off the hook for processing fraudulent cards for transactions under $25. But while Visa gives with one hand, the other hand is fisted up…

Visa is cracking down on chargebacks now harder than ever under the VCMP. Not only that, high risk merchants are now far more exposed to fees and assessments under the new Visa Fraud Monitoring Program (VFMP). Visa Inc has significantly slashed their previous fraud and chargeback thresholds in half across the board, and have tightened the requirements for merchants to avoid fees. As a result, our embattled family of high-risk merchants has grown exponentially.


The most sweeping aspect of Visa’s new posture on fraud is how it applies equally to merchants in both the US and the EU, without any exceptions for transaction volume. Previously, Visa US and Visa EU enjoyed separate fraud thresholds. Now, under the new Visa Inc., they’ve merged their ratios into a single monolithic policy that determines the risk profile for everyone. As a result, a lot more merchants will suddenly find themselves flagged as high risk and at-risk for increased chargebacks. This could create a vicious cycle for merchants where chargebacks are a fact of life.


ChargebackHelp knows high-risk verticals. We provide merchants with the most cost-effective solutions to keep their merchant accounts healthy. Our managed services monitor fraud alerts 24/7 from both “friendly” fraud and “true” fraud. Our managed services resolve merchant disputes and reduce chargebacks up to 30%.

When chargebacks can’t be avoided, we then provide representment. We can guarantee successful outcomes for 40% of all representment cases, but depending on the ticket item, we have seen great results up to 75%.

Our client roster ranges from luxury retailers, gift cards, B2B, health and beauty, online games, digital goods, dating and the adult industry. We leverage the significant transaction volume of our client base to achieve advantageous outcomes that our merchants could not achieve on their own. We know which disputes are winnable and act promptly on them.

See what we can do for your business in these changing times. Contact us today for your free chargeback analysis.