Visa announced in a recent advisory that unique needs of digital merchants will be addressed. The new program was introduced in April 2023 and merchants such as acquiring banks have time until the end of August 2023 to make sure new requirements and thresholds are met.
The VDGMFMP is an extension of the VFMP (Visa Fraud Monitoring Program) and only applies to merchants with one of the following MCCs (Merchant Category Codes):
- MCC 5735 — Record Stores
- MCC 5815 — Digital Goods: Media (Books, Movies, Digital Artwork, Images, Music)
- MCC 5816 — Digital Goods: Games
- MCC 5817 — Digital Goods: Applications (excluding games)
- MCC 5818 — Digital Goods: Large Digital Goods Merchant
What has changed?
In the new program the threshold is USD 25,000 worth of fraud attacks AND 0.9% sales volume in a single month AND 300 fraudulent transactions. While for most merchants the standard threshold is set at USD 75,000.
The VDGMFM Thersholds now look as follows:
Early Warning Visa DGMFM Threshold
| Program Type | Threshold Criteria |
| Early Warning | USD 15,000 Fraud Amount; and 150 Fraud Count; and 0.45% Fraud Sales Ratio |
Standard Visa DGMFM Threshold
| Program Type | Threshold Criteria | Program Status |
| Standard | USD 25,000 Fraud Amount; and 300 Fraud Count; and 0.9% Fraud Sales Ratio |
Month 1: Notification Months 2-4: Workout Period Month 5+: Enforcement Period |