Dispute Monitoring Just Got Stricter. Here's What Changed.

What Mastercard's new SMMP program and Visa's tightened VAMP threshold mean for chargeback management

Mastercard's new dispute monitoring program went live July 24, 2026, and most merchants have never heard of it. Here's what actually changed, and why chargeback management just got less forgiving.

Mastercard's New Program: SMMP

The Seller Merchant Monitoring Program can flag any card-not-present merchant once combined refunds and chargebacks cross five percent of transactions over a rolling thirty-day window, with no separate warning tier before enforcement begins.

Visa's Threshold Got Tighter Too

Visa's VAMP "excessive" threshold dropped from 2.2% to 1.5% in April 2026. Fines run $8 per violation, with no warning tier before penalties start, meaning merchants have less room to operate before facing real financial consequences.

Winning A Dispute Doesn't Erase It From Your Ratio

Even a successful representment doesn't reduce a merchant's ratio under either program. The dispute already counted the moment it was filed, regardless of the outcome. Prevention, not fighting disputes after the fact, is the only lever that actually moves the number.

Reason Codes Determine What Evidence Actually Matters

"Item not received" disputes need tracking and delivery confirmation. "Fraud" disputes need AVS/CVV match data and device information. Submitting generic evidence for the wrong reason code is one of the most common ways merchants lose disputes they otherwise could have won.

The Takeaway

If your chargeback ratio crossed one of these thresholds, would you know what to do about it? Most merchants haven't calculated their actual ratio under either program's new rules, or built a documented plan for what happens if they get close to a threshold. Knowing both now, rather than after a monitoring letter arrives, is the difference between a manageable situation and a real business disruption.