By Karisse Hendrick, Editor-at-Large,
Visa Changes Its Chargeback ‘Naughty List’ in 2016

While a small volume of chargebacks can be a cost of doing business in a card-not-present world, a high volume of chargebacks—from a card-network perspective—could indicate fraudulent transactions not being canceled, customer service issues or network rules not being followed. As a result, each card brand monitors the number of chargebacks a merchant receives to ensure they do not breach certain thresholds. When a merchant exceeds a card brand’s acceptable ratio of chargebacks to sales, the brand may place the merchant on an excessive-chargeback monitoring program. Each network has a different set of thresholds and different methods to calculate risk and program eligibility.

Once a merchant is placed on a program by a network, it