Visa chargeback reason code 93 falls under the Visa Fraud Monitoring Program (VFMP). This code is used to identify fraudulent transactions that exceed acceptable thresholds established by Visa. Here’s a detailed explanation of what causes it and how to prevent or mitigate it:
Causes of Chargeback Reason Code 93
- High Fraud Activity: When a merchant’s transactions have a high percentage of fraud compared to other merchants in their category or region, Visa may flag them under the VFMP.
- Exceeding Fraud Thresholds: Visa sets specific thresholds for fraud activity. If a merchant’s fraud ratio exceeds these thresholds, it can trigger reason code 93.
- Monitoring and Reporting: Visa continuously monitors merchants for fraud. If patterns or trends indicate an increased risk, Visa can apply this reason code to affected transactions.
Preventing and Mitigating Chargeback Reason Code 93
- Implement Strong Fraud Prevention Tools:
- Use Advanced Fraud Detection Software: Employ tools that use machine learning and artificial intelligence to detect and prevent fraud.
- 3D Secure Authentication: Implement 3D Secure (e.g., Verified by Visa) to add an additional layer of security during online transactions.
- Regularly Monitor Transactions:
- Analyze Transaction Data: Continuously monitor and analyze your transaction data to identify and respond to suspicious activities promptly.
- Use Alerts and Notifications: Set up alerts for high-risk transactions or unusual purchase patterns.
- Maintain Updated Security Protocols:
- PCI Compliance: Ensure that your systems are compliant with the Payment Card Industry Data Security Standard (PCI DSS).
- Secure Payment Gateways: Use secure payment gateways that offer encryption and tokenization to protect sensitive data.
- Educate and Train Staff:
- Fraud Awareness Training: Train your staff to recognize and respond to fraudulent activities.
- Customer Verification Procedures: Implement strict customer verification procedures, especially for high-value transactions.
- Communicate with Your Payment Processor:
- Regular Reviews: Regularly review your fraud prevention strategies with your payment processor and make necessary adjustments.
- Request Assistance: If you’re experiencing high levels of fraud, seek assistance from your payment processor for additional support and tools.
- Maintain Good Record-Keeping:
- Documentation: Keep detailed records of all transactions, including customer communication and delivery confirmation.
- Dispute Management: Be prepared to provide evidence quickly in case of disputes to minimize the impact of chargebacks.
