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Online scams continue to evolve, prompting Mastercard to strengthen its approach to scam prevention.
Effective 24 July 2026, the updated Scam Merchant Monitoring Program introduces enhanced merchant monitoring requirements and faster investigation timelines for merchants showing signs of scam activity.
Although the new requirements apply directly to acquirers and payment facilitators, merchants should understand how the program works and what behaviours could trigger additional scrutiny.
What is Mastercard’s Scam Merchant Monitoring Program?
The Scam Merchant Monitoring Program is Mastercard’s framework for identifying merchants that exhibit signs of scam activity and ensuring they are investigated promptly.
As part of Mastercard’s broader Merchant Trust Services initiative, it uses network intelligence, cyber and identity capabilities, merchant behaviour analysis and real-time risk signals to detect potential scam merchants at an early stage.
Its goal is to protect consumers, reduce scam-related losses, strengthen trust in digital commerce and enable earlier intervention before significant harm occurs.
What’s changing on 24 July 2026?
The most significant change is the introduction of a mandatory 72-hour response timeline, alongside clearer investigation triggers and additional scrutiny for newer merchants.
If the investigation confirms scam activity, the merchant must immediately be prevented from accepting Mastercard transactions.
| Area | Change effective 24 July 2026 |
|---|---|
| Scope | Applies to card-not-present (CNP) merchants. |
| Investigation deadline | An investigation must begin within 72 hours after at least one investigation trigger is met. |
| Investigation triggers | Refer to when an investigation is required (read below) |
| Outcome if scam activity is confirmed | Mastercard transaction authorisation and, where applicable, clearing services must be blocked for the merchant. |
| Daily checks | Acquirers must review Mastercard’s Fraud and Loss Database daily for new scam merchant listings and alerts. |
Source: Mastercard GLB 12772 Revised Standards.
Ongoing merchant monitoring becomes more comprehensive
The revised standards require acquirers to continuously monitor merchant activity throughout the merchant lifecycle, reviewing indicators such as transaction counts, refunds, fraudulent transactions, chargebacks and activity inconsistent with the merchant’s business model.
Additional monitoring requirements also apply to merchants with less than six months of Mastercard acceptance history if refund and chargeback thresholds are exceeded.
When is an investigation required?
One of the most significant additions to the revised standards is the introduction of clearly defined investigation triggers.
If any one of the following conditions is met, the acquirer or payment facilitator must begin investigating the merchant within 72 hours.
- Sudden drop in authorisation approval rate
An investigation is required if, over at least 72 hours during which the merchant processes at least 25 purchase transactions, the average authorisation approval rate:- decreases by 50 percentage points compared with the previous seven-day baseline (for example, from 95% to 45%), or
- drops below 30%.
This excludes situations caused by BIN attacks or technical issues at the acquirer or its service provider.
- Mastercard issues a GRIP letter
If the acquirer receives a Mastercard Global Rules Investigation Program (GRIP) letter related to a suspected scam merchant, an investigation must be initiated. - New merchants exhibit early warning signs
Merchants with less than six months of Mastercard acceptance history are subject to additional triggers. An investigation is required if:- two different issuers report scam transactions using Fraud Type 56 (Manipulation of Cardholder),
- two different issuers initiate chargebacks with supporting documentation referring to scams or manipulation of the cardholder,
- more than 5% of purchase transactions become refunds or chargebacks (or both) during a rolling 30-day period in which the merchant processes at least 500 purchase transactions.
- Merchant Monitoring Service Provider (MMSP) alert
An investigation is also mandatory if the acquirer receives one or more alerts from a Merchant Monitoring Service Provider (MMSP) identifying the merchant as a potential scam merchant or otherwise suspected of conducting illegal activity.
Investigation triggers for all merchants
| Trigger | Threshold |
|---|---|
| Authorisation approval rate | Drops by 50 percentage points or below 30% |
| Minimum transaction count | 25 purchase transactions over at least 72 hours |
| GRIP letter | Investigation required |
| MMSP alert | Investigation required |
Additional investigation triggers for new merchants (< 6 months of Mastercard acceptance history)
| Trigger | Threshold |
|---|---|
| Refunds + chargebacks | More than 5% during a rolling 30-day period with at least 500 purchase transactions |
| Fraud reports (Fraud Type 56) | Fraud Type 56 reported by two different issuers |
| Chargebacks alleging scam activity | Chargebacks from two different issuers with documentation identifying the merchant as a scam |
Source: Mastercard GLB 12772 Revised Standards.
What does this mean for merchants?
Although the new requirements apply directly to acquirers and payment facilitators, merchants should expect increased monitoring of their payment activity. Businesses showing sudden operational changes, elevated refund or chargeback rates, or other indicators of potential scam activity may receive additional scrutiny. Maintaining transparent business practices and healthy operational metrics is the best way to minimise risk.
How merchants can prepare
The best way to minimise risk is to maintain a stable and trustworthy merchant profile. Regularly monitor authorisation approval rates, refunds, chargebacks and unusual transaction patterns, while keeping product information, refund policies and business details up to date.
If you notice unusual changes in transaction behaviour, contact your payment provider early to help prevent issues from escalating.
How finby helps
At finby, proactive risk monitoring is part of our acquiring services. We help merchants identify potential risks early and navigate evolving Mastercard requirements with confidence.
If you have any questions, contact your Account Manager or get in touch with us at info@finby.eu.
