Mastercard said it has developed a new compliance program for gas stations with high payment-card fraud that requires them to have a remediation plan in place, the card network told OPIS. The good news is the revised definition of a high-fraud gas station is based on a three-month period, instead of a two-month period as it was in the recent past. High-risk gas stations also will get help from a new tool – Mastercard’s Merchant Fraud Insights, which provides additional details on fraudulent transactions and a “more comprehensive view into the safety of the purchasing environment at their individual locations.” But sites that fall into the high-fraud category could face chargebacks passed through from the card processor or acquirer, which in some cases is an oil brand. For example, as OPIS reported, Chevron said it will pass fraud chargebacks to stations the payment card networks deem high-risk effective Oct. 1, and other oil brands could follow suit. Under its new program, Mastercard said it notifies acquirers about automated fuel dispenser (AFD) merchants that meet its high-risk fraud criteria. The acquirers will be required to complete and submit a remediation plan providing key details about each station’s fraud controls and the measures taken to mitigate fraud, Jim Issokson, Mastercard’s senior vice president of communications for North America, told OPIS. “The criteria we have established is based on a three-month period on cleared transactions, dollar amount of reported fraud and gross fraud basis points,” Issokson said in an email.
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