What is a Mastercard fraud fine?
A Mastercard fraud fine is a penalty imposed on merchants or acquirers when fraud levels exceed thresholds set by Mastercard.
Why does Mastercard apply fraud fines?
These fines encourage participants to maintain strong fraud prevention measures and protect the integrity of the payment network.
How are fraud thresholds determined?
Thresholds are based on metrics such as fraud rate and transaction volume. Mastercard defines specific programmes and monitoring criteria.
Who is responsible for paying the fine?
The acquiring bank is typically responsible, though costs are often passed on to the merchant.
How can businesses avoid fraud fines?
They reduce fraud through strong authentication, monitoring tools, and compliance with security standards.