Visa and MasterCard have made important changes to merchant acceptance as part of a proposed settlement for merchants located in the U.S. and U.S. territories. For more information click here.

When a transaction dispute is outside the chargeback time frames, a compliance case may be initiated. Compliance is the process of filing a case to the one of the card associations by either the Issuer or Acquirer - Merchant Services for ruling on a transaction or operational regulation dispute. A case is filed when all of the following conditions are met:

  • A member or its affiliate has violated one or more of the MasterCard or Visa bylaws and rules.
  • The filing member documents a financial loss as a result of the violation.

Typically a member will attempt to resolve the dispute via pre-compliance with the opposing member. However, there are instances that allow direct compliance case filings.

Compliance cases involving MasterCard transactions must be submitted within 180 days from the original transaction posting date.

Compliance cases involving Visa transactions must be submitted within 120 days from the original transaction posting date. Visa allows exceptions to this timeframe based on date of discovery. Therefore, compliance cases can be submitted for transactions that are up to two years from the original transaction posting date if the compliance case falls within the rules for date of discovery.

Effective 9/1/08, Visa is increasing the filing fee on arbitration and compliance cases. The increase amount of $100.00 will bring the filing fee to $250.00. Cases filed prior to 9/1/08 will be processed with the current filing fee of $150.00. The review fee of $250.00 will remain unchanged.