What is the Mastercard EFM program?

The Excessive Fraud Merchant program is a fraud compliance scheme created by Mastercard. The program's purpose is to exercise oversight regarding eCommerce merchant activity and prevent excessive fraud from occurring on the Mastercard network. This is achieved by imposing penalties on merchants for noncompliance.

What is an excessive Mastercard fraud rate?

Mastercard will designate your fraud rate as âexcessiveâ if the number of chargebacks you receive each month with a âfraudâ reason code exceeds 0.5% of transactions. You must also receive 1,000 or more fraud-designated transactions per month, <strong><u>and</u></strong> the dollar value of those transactions must exceed $50,000.

What happens if a merchant has too many fraud incidents?

Merchants who surpass acceptable thresholds could be liable for penalties that increase with each month they spend in the program. Merchants will see no penalties after one month. However, nineteen or more months in the program would result in a monthly penalty of $100,000.

How do you get out of the Mastercard EFM program?

The only way to get out of the Mastercard Excessive Fraud Merchant program is to lower your exposure to fraud. Using and combining various fraud tools and best practices can go a long way to reducing merchant risk.

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Mastercard Excessive Fraud Merchant Program

Card networks are determined to stop card-not-present fraud. Since 2020, Mastercard has held merchants increasingly liable for excessive fraud through the Excessive Fraud Merchant (EFM) program. So, what exactly is the EFM, how much can it cost you, and can you avoid being added to the MATCH List due to excessive fraud chargebacks?

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