The Visa Chargeback Monitoring Program (VCMP) is a compliance program that specifically targets merchants generating excessive numbers of disputed transactions (chargebacks), regardless of whether the disputes are caused by true fraud, friendly fraud, or poor customer service.
The Difference Between VFMP and VCMP
While VFMP focuses exclusively on transactions flagged as fraudulent, VCMP looks at all chargebacks. A merchant might have zero stolen credit cards but still enter VCMP if they refuse to issue refunds for defective products, prompting furious customers to call their issuing banks. The standard VCMP threshold is typically 100 chargebacks and a 0.9% dispute ratio in a month.
Preventing Chargeback Spikes via Onlayer
Poor operational behavior always precedes a spike in chargebacks. Onlayer continuously analyzes real-world public sentiment across 50+ external platforms. If a merchant stops shipping products, Onlayer triggers risk-adjusted portfolio scoring instantly, enabling you to apply rolling reserves or initiate offboarding before the merchant hits VCMP thresholds.
