program: ECP
authority: Mastercard SPME 11.4, 11.5, 13.1.2
chargeback_to_transaction_ratio_threshold: 0.015
min_chargeback_count: 100
program_tiers:
  - standard
  - excessive
tier_thresholds:
  standard: 0.015
  excessive: 0.030
merchant_notification_business_days: 5
monitoring_cadence: monthly
agent_owner: ecp_ops_agent
 
- # The SPME discontinued the explicit definition of 'Basis Points' in section 8.3.1, which previously described chargeback rate calculations.
- # Despite this removal, the ECP Thresholds policy retains chargeback rate thresholds expressed as ratios rather than basis points,
- # maintaining consistency with Mastercard's monitoring requirements under section 11.4.
- # Program thresholds and tier definitions remain unchanged, preserving the integrity of risk evaluation and compliance.
+ # Updated per Mastercard SPME §11.4 effective 11 February 2025,
+ # requiring merchant contact profiles to include either a shared mailbox
+ # email accessible by multiple persons, or multiple individual email addresses.
+ # This preserves timely and reliable communication for merchants under ECP monitoring.

Excessive Chargeback Program (ECP) Thresholds

Mastercard's Excessive Chargeback Program (ECP) monitors merchants whose chargeback activity exceeds established thresholds relative to monthly transaction volume and chargeback amounts. Halyard Pay tracks these metrics monthly and escalates merchants meeting or surpassing program criteria into risk management processes.

Program tiers

There are two escalation tiers based on chargeback-to-transaction ratios calculated monthly:

• Standard: Chargeback ratio of at least 1.5% (0.015) with a minimum of 100 chargebacks.

• Excessive: Chargeback ratio of 3.0% (0.03) or greater.

The chargeback ratio is determined by dividing the number of chargebacks received for a merchant within a month by the total Mastercard transactions for that merchant in the preceding month.

MATCH Listing criteria

Merchants may be reported to the MATCH system under reasons including compliance violations, fraudulent behavior, or illegal activity—not solely for excessive chargebacks. Reporting criteria require chargebacks to exceed 1% of Mastercard sales and a USD 5,000 chargeback amount. Acquirers must assess relevant standards and risk behavior per Mastercard and American Express protocols.

Required actions

1. Calculate each merchant's monthly chargeback-to-transaction ratio and total chargeback amount.

2. Assign merchants to the appropriate escalation tier based on ratio thresholds.

3. Evaluate MATCH reporting needs considering broader compliance or legal issues.

4. Ensure merchant contact profiles include either a shared mailbox email accessed by multiple personnel or multiple individual contact emails, per Mastercard contact information requirements.

5. Open an ECP case and notify the merchant within five business days.

5. 6. Monitor merchants monthly until program exit.

6. 7. Escalate cases to chargeback agents for automated handling.

Data Protection and Privacy Considerations

Aligned with Mastercard's data protection requirements under EU regulations, Halyard Pay ensures all personal data processing related to ECP complies with enhanced privacy and security protocols, including minimizing access, safeguarding data, complying with transfer restrictions, and cooperating on breach notifications. Halyard Pay and clients function as independent data controllers, maintaining transparency and accountability.

Source authority: Mastercard SPME §§11.4, 11.5, 13.1.2, 11.5.1.