Mastercard strengthens scam defense with new merchant monitoring program

Mastercard has launched a new Scam Merchant Monitoring Program (SMMP) requiring acquiring banks to investigate flagged fraud activity within 72 hours. The program, effective July 24, 2026, targets authorized payment scams where consumers are tricked into making payments. It follows a similar initiative by Visa (VAMP) and was discussed at the Midwest Acquirers Association conference. Acquirers must monitor merchant behavior for risk indicators like sharp drops in authorization rates or issuer scam reports. If scam activity is confirmed, the acquirer must take action. Industry consultant Ken Musante noted growing concern from Washington about consumer scams. The program compresses the window between suspicious signals and enforcement, aiming to drive greater consistency in fraud mitigation efforts.