The number of the fraud alerts and their increase should be monitored and carefully investigated by the merchant for two main reasons: the breach of the fraud ratio thresholds may lead to fines and penalties, the fraud alert increase will result in chargeback increase and the merchant will suffer more financial losses.
Fraud ratio is a fraud alert-to-sale calculation.
For Visa - the fraud alerts amount received in the calendar month is divided by the amount of transactions from the same month.
For Mastercard - the fraud alerts amount for the calendar month is divided by the amount of sales from the same month.
If you have any additional questions do not hesitate to contact us at email@example.com