What are the two layers of Mastercard's Excessive Chargeback Program (ECP) and their thresholds?

What are the two layers of Mastercard's Excessive Chargeback Program (ECP) and their thresholds?

• A. ECM: dispute count 100-299, chargeback rate 1.5-2.99%; HECM: dispute count 300+, chargeback rate 3%.
• B. ECM: dispute count 50-99; HECM: 100-199.
• C. ECM: dispute count 0-50; HECM: 50-100.
• D. ECM: dispute count 200-299; HECM: 300-399.

Answer: (A)

This item tests how Mastercard structures its Excessive Chargeback Program with two monitoring layers that use two metrics to decide when a merchant moves into tougher scrutiny. The program has a lighter ECM tier and a higher-risk HECM tier. A merchant falls into the ECM tier when they have between 100 and 299 disputes and a chargeback rate between 1.5% and 2.99%. If disputes reach 300 or more and the chargeback rate is at least 3%, they move into the HECM tier. This two-metric, two-layer setup ensures that both growing dispute volume and a rising rate are needed to trigger the more severe layer. This is why the stated thresholds are correct: they reflect the exact boundaries for the two layers, tying together dispute count and rate. Other ranges don’t match Mastercard’s defined thresholds, so they wouldn’t indicate the same tier. Remember, dispute count is the number of chargebacks in the period, and the chargeback rate is those chargebacks as a percentage of total transactions.

This item tests how Mastercard structures its Excessive Chargeback Program with two monitoring layers that use two metrics to decide when a merchant moves into tougher scrutiny.

The program has a lighter ECM tier and a higher-risk HECM tier. A merchant falls into the ECM tier when they have between 100 and 299 disputes and a chargeback rate between 1.5% and 2.99%. If disputes reach 300 or more and the chargeback rate is at least 3%, they move into the HECM tier. This two-metric, two-layer setup ensures that both growing dispute volume and a rising rate are needed to trigger the more severe layer.

This is why the stated thresholds are correct: they reflect the exact boundaries for the two layers, tying together dispute count and rate. Other ranges don’t match Mastercard’s defined thresholds, so they wouldn’t indicate the same tier. Remember, dispute count is the number of chargebacks in the period, and the chargeback rate is those chargebacks as a percentage of total transactions.