What Is Mastercard SMMP?
Mastercard’s Scam Merchant Monitoring Program (SMMP) helps identify potentially suspicious merchant activity by monitoring refund and chargeback patterns.
The program focuses on unusual transaction behavior that may indicate elevated risk. Even legitimate businesses can attract additional scrutiny when their payment metrics exceed applicable monitoring criteria.
How Is the SMMP Ratio Calculated?
The SMMP combined rate compares refunds and chargebacks against Mastercard purchase transactions.
This calculation provides an estimate of your combined rate. Actual monitoring depends on Mastercard’s applicable program rules, transaction volume, and eligibility criteria.
Why Does Your SMMP Ratio Matter?
A high SMMP ratio may trigger additional monitoring and investigations, potentially affecting your payment operations.
Keeping refunds and chargebacks under control helps reduce unnecessary disputes, improve payment performance, and identify potential risks early.
What Is the SMMP 5% Threshold?
Published guidance describes a 5% combined rate as one of the monitoring criteria for qualifying merchants. Additional requirements, including minimum transaction volume, may apply.
Exceeding the applicable criteria does not automatically indicate scam activity, but it may require further review by your acquiring bank.