Reason code

Visa reason code 10.5 is used when a chargeback is initiated as part of the Visa Fraud Monitoring Program (VFMP). This program identifies merchants with excessive fraud-to-sales ratios and allows Visa to proactively initiate chargebacks—even without a cardholder dispute—for transactions flagged as potentially fraudulent.

These chargebacks are often the result of consistent patterns of high-risk activity, inadequate fraud controls, or non-compliance with Visa’s fraud thresholds. Merchants enrolled in the VFMP must take immediate steps to reduce fraud levels or risk further financial penalties.

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If the transaction was legitimate and properly authorized, submit documentation to support your case:

• Provide AVS/CVV match results, fraud screening records, and order confirmation
  
  
• Include evidence that the cardholder received and benefited from the goods/services

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Lower your fraud ratio to stay out of the Visa Fraud Monitoring Program:

• Implement robust fraud tools like 3D Secure, device fingerprinting, and velocity checks
  
  
• Monitor your fraud-to-sales ratio monthly and act quickly if it approaches threshold levels

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