Acquiring banks' Global Merchant Audit Program (GMAP) responsibilities differ by tier as follows:
- Merchant identified in Tier 1 - a fraud-to-sales volume ratio minimum of 1% and not exceeding 3.99%.
- Action. Acquiring banks are not required to respond formally to the GMAP notice. The Tier 1 notice is provided for information only.
- Response. Acquiring banks are not required to respond formally to the GMAP notice. The Tier 1 notice is provided for information only.
- Recommendation. It is recommended that acquiring banks implement or enhance a fraud control program.
- Merchant identified in Tier 2 - a fraud-to-sales volume ratio minimum of 4% and not exceeding 6.99%.
- Action. Acquiring banks must conduct training on acceptance and fraud control procedures at the merchant location.
- Response. Acquiring banks must provide a response for each merchant location identified in the Tier 2 criteria, within 30 calendar days of the date of the Tier 2 notice.
- Recommendation. It is recommended that the acquiring bank, if it does not terminate the merchant, implement or enhance a fraud control program.
- Merchant identified in Tier 3 - a fraud-to-sales volume ratio of at least 7%.
- Action. Acquiring banks either must terminate the merchant processing agreement or accept liability for chargebacks with Integrated Product Messages (IPM) reason code 4849 - Questionable Merchant Activity for all reported fraudulent transactions (except Fraudulent Application and Account Takeover fraud) during the applicable chargeback period. The chargeback period is determined to be a minimum of six months or a maximum of 12 months.
- Response. Acquiring banks must provide a response for each merchant location identified in the Tier 3 criteria, within 30 calendar days of the Tier 3 notice.
- Recommendation. It is recommended that the acquirer, if it does not terminate the merchant, implement or enhance a fraud control program.
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