Mastercard SMMP: What Merchants Need to Know About the New Monitoring Framework

As part of this shift, Mastercard is introducing the Scam Merchant Monitoring Program (SMMP): a new framework designed to help identify merchants displaying potential scam-related risk indicators.

For merchants, this means increased attention on transaction patterns, operational behaviour, and other signals that may trigger further review.

Understanding how these systems work and knowing what to prepare can help merchants stay ahead of potential challenges.

Why is Mastercard introducing SMMP?

The growth of online commerce has created new opportunities for businesses and consumers alike. However, it has also increased the complexity of identifying fraudulent merchant activity.

Scam merchants can negatively impact:

• Consumers
• Financial institutions
• Payment providers
• The wider payments ecosystem

To address this challenge, Mastercard is strengthening its monitoring capabilities to detect suspicious patterns and help reduce fraudulent activity.

The goal is not only to identify problematic merchants but also to create a safer and more transparent payments environment.

What does SMMP mean for merchants?

For legitimate merchants, the introduction of enhanced monitoring does not necessarily mean disruption. However, businesses should understand that certain behaviours and operational patterns may attract additional attention.

Merchants may need to demonstrate that they have:

• Clear business practices
• Transparent customer communication
• Strong operational controls
• Effective risk management processes

Being prepared can make a significant difference if a merchant enters a review process.

What triggers merchant monitoring?

Monitoring systems analyse multiple signals to identify unusual or potentially concerning activity.

Some examples of factors that may contribute to additional review include:

Transaction behaviour changes

Sudden increases in transaction volume, unusual transaction patterns, or significant changes in customer behaviour may require further analysis.

Chargeback and dispute activity

A high level of disputes or chargebacks compared with normal activity can be an important indicator that requires attention.

New merchant activity

New merchants may receive closer monitoring as payment providers and networks assess their operational history and transaction behaviour.

Customer experience signals

Complaints, unclear policies, or issues related to product delivery and customer communication can also influence merchant risk assessments.



What happens if a merchant is reviewed?

A review process typically involves analysing different aspects of the merchant’s operations, including:

• Transaction activity
• Customer complaints
• Chargeback trends
• Business model and practices
• Compliance documentation
• Internal risk controls

Merchants should be prepared to provide accurate and up-to-date information to support the review process.

Having the right documentation and processes in place can help make these reviews smoother and more efficient.

How merchants can prepare for SMMP

Preparation is one of the most effective ways to reduce operational disruption.

Merchants should consider:

Monitor key performance indicators

Regularly review important metrics such as:

• Chargeback rates
• Refund activity
• Transaction trends
• Customer complaints

Understanding changes early allows businesses to address issues before they become larger concerns.

Maintain clear documentation

Ensure that important business information is easily accessible, including:

• Customer policies
• Terms and conditions
• Refund procedures
• Supplier and operational documentation

Strengthen customer communication

Clear communication around products, delivery timelines, payments, and refunds can help improve customer trust and reduce disputes.

Review payment operations regularly

Merchants should work closely with their payment partners to understand potential risks and ensure their payment processes remain aligned with industry expectations.

Staying ahead of payment industry changes

The introduction of Mastercard SMMP reflects a broader industry movement towards stronger monitoring, improved transparency, and safer payment ecosystems.

For merchants, the key is not simply reacting when a review happens, it is understanding the signals, improving processes, and building operational resilience before issues arise.

Businesses that take a proactive approach will be better positioned to navigate these changes successfully.



In our webinar “Mastercard SMMP: Are You Ready?”, we explored:

• What triggers merchant monitoring
• How the review process works
• What information merchants should prepare
• Practical steps to improve operational readiness

Watch the full webinar recording below:

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