The Hidden Risks of Delayed Fraud Reporting — A Complete Guide to Visa Fraud Reporting Compliance
Missed a single fraud report this quarter?
It might feel like a minor slip in the sea of transactions banks process every day. But in reality, that one missed deadline can trigger warnings, hefty fines, or even suspension of fraud dispute rights.
With stricter timelines in Europe and global changes coming in October 2025, issuers will soon have to report all fraud cases.
This is where Visa’s Fraud Activity Reporting Non-Compliance Assessment comes into play, a framework that keeps issuers accountable and protects the payments ecosystem.
In this blog, we’ll break down what it entails, the reporting obligations, and the escalating consequences of non-compliance.
Understanding the Framework
At its core, Visa’s Fraud Activity Reporting Non-Compliance Assessment is a penalty system for issuers who don’t report fraud on time. If an issuer misses its fraud reporting obligations, Visa promises severe consequences: from warnings to fines and even suspending the issuer’s right to dispute fraudulent transactions. Meaning, it will open the floodgates of scammers trying to game the system and issuers can’t do anything about it until the ban is lifted by Visa.
The framework exists to ensure that all issuers follow the same rules when reporting fraud. By doing so, Visa can:
- Track fraud trends across regions and payment channels.
- Prevent further losses in the payment ecosystem.
- Resolve fraud cases quickly, so banks and customers aren’t left exposed.
Think of it as a scoreboard for fraud reporting: timely, accurate reporting keeps your team in the game; missed deadlines cost points and eventually, the fines or suspensions follow.
In short, the framework isn’t just paperwork it’s a structured, escalating system that keeps issuers accountable and the payments network secure.
Reporting Requirements
Issuers are required to report all fraud cases accurately and within the specified timelines. Failure to do so constitutes non-compliance under Visa’s rules.
Timeline:
- Standard: Fraud cases must be reported within 60 days of the transaction or 30 days after receiving a dispute notice.
- Europe: Regional regulations impose stricter deadlines.
- Global Update (from October 18, 2025): All fraud cases must be reported regardless of transaction status or network.
Scope of Reporting:
- Covers lost, stolen, counterfeit cards, account takeovers, and card-not-present fraud.
- Reporting obligations apply whether fraud is detected before or after a dispute.
Compliance with these requirements is mandatory to maintain the issuer’s fraud dispute rights and avoid escalating penalties.
Non-Compliance Consequences
Visa applies an escalating penalty system for issuers that fail to meet fraud reporting requirements. The consequences increase with repeated non-compliance:
First and Second Warning
- Issuers receive formal warnings.
- Fraud dispute rights are retained.
Third Warning
- Fraud dispute rights are suspended for 90 days.
- A USD 25,000 fine is imposed.
Fourth Warning
- Suspension period doubles to 180 days.
- Fine remains USD 25,000 (or USD 50,000 in Europe).
- Onsite compliance audit is required.
Fifth Warning
- Fraud dispute rights are indefinitely suspended until Visa verifies compliance restoration.
- Additional fines may be levied at Visa’s discretion.
This stepwise structure ensures that issuers understand the severity of repeated non-compliance. Timely and accurate reporting is not only a compliance requirement but also crucial to maintaining operational integrity and protecting the payments ecosystem.
Practical Implications for Issuers
Compliance with Visa’s fraud reporting requirements is not just a regulatory obligation, it has real operational and financial consequences. Issuers must take proactive steps to ensure timely and accurate reporting:
- Implement robust reporting systems: Automate data collection and reporting wherever possible to reduce errors and meet deadlines.
- Track timelines meticulously: Maintain clear records of transaction dates, dispute notices, and reporting deadlines to avoid missed submissions.
- Prepare for audits: Ensure documentation is organized and accessible, as repeated non-compliance may trigger onsite audits.
- Train teams effectively: All personnel involved in fraud detection and reporting should clearly understand the obligations and escalation process.
By following these practices, issuers can avoid escalating penalties, safeguard their fraud dispute rights, and contribute to the overall security and integrity of the payment’s ecosystem.
Conclusion
Timely and accurate fraud reporting is a cornerstone of a secure payment’s ecosystem. Visa’s Fraud Activity Reporting Non-Compliance Assessment ensures that issuers remain accountable, protecting both their operations and the broader network.
For issuers, compliance is not optional, missed deadlines and incomplete reports carry escalating consequences, from warnings to fines and suspension of fraud dispute rights. By understanding the framework, adhering to reporting timelines, and implementing effective processes, banks can stay compliant, safeguard their dispute rights, and contribute to a more secure payments environment.
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