Why Dispute Quality Should Matter to Issuers

Don’t get caught by fines for avoidable reporting mistakes!

Author: Kate Firuz, Director of Product


Report Accurate Numbers Every Time!

In today’s ever expanding (and exciting) payments ecosystem, Banks and Fintech Card Programs play a growing and crucial role by providing consumers with access to innovative and cashless means to completing transactions. Most of these transactions are via the established and trustworthy payment networks that we all know well – Mastercard and Visa.

However, as the old saying goes, the great power of innovative payments and the great responsibility to report your activity properly go hand in hand. Within Mastercard QMR & GCO reports, as well as Visa GOCs, issuers and acquirers are required to report a range of financial metrics. Depending on the size of the Card Program, this seemingly simple task can be complicated, daunting, and hard to do accurately since data comes from several different sources!

Data sources that are captured typically include:

  • ✔️Details of transactions volumes
  • ✔️Cards processed or declined
  • ✔️ Merchant Service Charges
  • ✔️ Acquirer fees
  • ✔️ Disputes

While it may seem like a routine paperwork task of collecting data and submitting a file, not doing it properly actually has real-world financial consequences for the Card Program, their cardholders and the ecosystem as a whole. To ensure the accuracy and integrity of the data being reported, Mastercard and Visa have established a set of rules and guidelines that issuers and acquirers must follow to be considered compliant.

When numbers are not accurate, BIN owners (Card Programs) may be subject to substantial penalties and fines. In some cases, a Principal Member may even be required to pay fines for each occurrence of inaccurate reporting. These fines can range from several hundred dollars to tens of thousands of dollars per incident, depending on the severity and the frequency of the issue.

In more rare but possible circumstances, additionally to fines, a payment provider may also be subject to other penalties such as suspension of their ability to issue new credit cards or process transactions. Obviously this has significant financial implications for the organization, as they may lose business and market share as a result of the suspension. All because of avoidable reporting errors!

To avoid these risks, payment providers need to ensure that they have the appropriate systems, processes, and controls in place to collect accurate and complete data. This includes implementing strong data management practices and ensuring that data is regularly validated and reconciled. By following these guidelines, BIN owners can maintain their membership in the Mastercard and Visa network and continue to provide consumers with access to payments while contributing to the health and stability of the ecosystem. If you want to learn more about how to keep your data and reporting compliant, or are currently facing challenges with QMR and QOC reporting, reach out to us and we’ll show you how to fix and automate your processes!