#USA #Cleveland #Visa #RevitPay #VAMP

Major Chargeback Increases in Payments Industry

The payments sector is undergoing a seismic shift, as evidenced by RevitPay's latest report showing a staggering 222% year-over-year increase in chargebacks. This surge is attributed to stricter oversight from Visa's newly implemented Acquirer Monitoring Program (VAMP), which is raising the stakes for merchants across various industries including eCommerce, travel, subscription services, and healthcare.

VAMP's Impact on Businesses

VAMP aims to merge fraud and dispute data into a unified compliance framework. Merchants are now subjected to stringent requirements, where those exceeding a combined fraud and chargeback rate of 2.2% will face increased scrutiny. This threshold is expected to decrease to as low as 1.5% by 2026, compelling merchants to reassess their fraud protection strategies.

Interestingly, current statistics reveal that friendly fraud represents a hefty 75% of all chargebacks, signaling an urgent need for businesses to adapt. Particularly alarming is the travel and hospitality sector, which has seen an 816% hike in chargebacks, making it a prime focus for regulatory enforcement under the new program.

The New Compliance Landscape

Under this renewed scrutiny, even businesses previously perceived as low-risk can now face fines, account termination, or rolling reserves if they cannot comply with these heightened expectations. RevitPay is stepping up to support these industries through significant changes in payment compliance, offering comprehensive tools and strategies aimed at mitigating disputes before they escalate.

Solutions Offered by RevitPay

• - Pre-dispute Alerts and Refunds: Utilizing Visa's Rapid Dispute Resolution alongside platforms like Ethoca and Verifi, merchants can proactively manage chargebacks.
• - 3D Secure Authentication: Implementing this advanced measure shifts liability for fraudulent transactions away from the merchant.
• - Transparent Billing Descriptors: Clear billing policies help reduce incidences of 'unrecognized charge' disputes.
• - Advanced Monitoring Systems: Identification and rapid isolation of high-risk transactions can help avert potential chargebacks.

A Call for Proactive Mindsets

Peter Kusner, CEO of RevitPay, emphasized that this shift is not merely a tweak in regulations but a complete transformation in how businesses must operate within the payments ecosystem. He noted that achieving dispute ratios below 0.5% is now crucial for maintaining healthy merchant accounts. Relying on outdated fraud prevention methods puts businesses at a significant risk of being flagged or losing their processing capabilities.

RevitPay's commitment is clear: to assist businesses in turning the challenges posed by Visa's rigorous compliance into a competitive edge. By integrating real-time fraud detection, transparent billing practices, and expert advisory, RevitPay positions its client merchants to not only endure the impending changes but emerge stronger and more resilient than before.

In summary, the payments industry is at a pivotal moment where compliance is not just a regulatory requirement but a strategic opportunity for business growth and sustainability. With changing landscapes constantly reshaping the operational models in place, keeping abreast of compliance is more important than ever. For further insights, the full RevitPay report offers valuable data and guidance on navigating these turbulent waters.

For additional information, refer to RevitPay’s official resources to empower your business through these challenging changes.