Fraud
10.5 Visa Fraud Monitoring Program
Details
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.
Timing to raise the dispute (Issuer/Cardholder)
Timing to respond to the dispute (Acquirer/Merchant)
How to respond?
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
How to prevent?
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