Mastercard Chargeback Monitoring Program Updates

Mastercard has recently updated its Chargeback Monitoring Program. The new updates involve 2 different programs: the Excessive Fraud Merchant (EFM) Compliance Program and the Excessive Chargeback Program (ECP).

The EFM Compliance Program is intended to mitigate fraud on e-commerce transactions, while ECP is targeted at monitoring and reducing excessive chargebacks. Both programs have thresholds for fraud or chargebacks, and merchants are required to remain below these thresholds. When merchants exceed the threshold, they will be entered into a category and will receive a  fine ranging from USD $500 to $200,000, based on how long the merchant is in the program for,and the number of chargebacks received. 

Below are the thresholds for EFM and ECP:

EFM (Excessive Fraud Merchant Compliance Program)

  • The total dollar amount (or local currency equivalent) of fraud-related chargebacks in a given month exceeds USD 50,000.
  • The total number of fraud chargeback basis points (bps) is greater than 50.
  • The percentage of monthly clearing volume processed using 3DS (including Data Only transactions) is less than 10% in nonregulated countries or 50% in regulated countries.

*The EFM Program does not apply to merchants in Germany, Liechtenstein, St. Helena, and Switzerland. 

ECP (Excessive Chargebacks Program)

There are 2 levels in Mastercards’ Excessive Chargeback Program: Excessive Chargeback Merchant (ECM) and High Excessive Chargeback Merchant (HECM). In both cases, merchants are entered into the category when the two conditions listed for each program are met.


  • The total number of chargebacks is greater than 100.
  • The total number of chargeback basis points is greater than 150. 

High ECM

  • The total number of chargebacks is greater than 300.
  • The total number of chargeback basis points is greater than 300.

What do these changes mean for me? 

To ensure compliance with Mastercard’s Chargeback Monitoring Programs, it is critical that merchants select a payment processing provider that is experienced in monitoring chargebacks and fraud. To learn more, contact today.

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