Effective July 22nd, 2016, Visa will block all US counterfeit-card fraud chargebacks under USD 25. And starting in October 2016, it will allow banks to charge back only 10 counterfeit transactions per account, and will require them to assume liability for all transactions thereafter. The blocks will remain through April 2018.
These two changes have the potential to reduce the number of chargebacks that merchants are seeing, according to Visa. Following these changes, Visa claims merchants can expect to see 40% fewer counterfeit chargebacks, and a 15% reduction in US counterfeit fraud dollars being charged back. The policy updates are also designed to reinforce the issuers responsibility to detect quickly and act upon counterfeit fraud.
It is estimated that counterfeit-card fraud will rise to USD 4.5 billion in 2016, up 12.5% from 2015, according to a research by Aite Group.
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