Getting blacklisted by Visa, Mastercard, or other card schemes is one of the worst things that can happen to your business. If it happens, you might lose your ability to accept card payments, get hit with massive fines, or even be forced to shut down your merchant account. Worse, the damage to your reputation can follow you from one payment provider to the next.
While many business owners think blacklisting only happens to scammers or shady operations, the truth is that it can happen to legitimate businesses, too. Often, the warning signs are there; you just need to know what to look for.
So, how do you know if your business is heading in the wrong direction? Let’s go through the top 10 warning signs that your company might be at risk of being blacklisted by card schemes in 2025, and what you can do about it.
1. Your chargeback ratio is too high
This is the number one reason businesses get flagged. A chargeback happens when a customer disputes a payment with their bank instead of going to you for a refund. If your chargeback ratio goes above certain limits, you could be placed in a card scheme’s fraud or dispute monitoring program.
Visa’s updated rules under VAMP require most businesses to stay under 0.9 percent. If you hit 1.5 percent or more, you are in the danger zone. To make matters worse, card schemes are now checking this on a monthly basis.
If your chargebacks are rising, review your product descriptions, billing methods, and customer support practices. Sometimes, a few small changes can make a big difference.
2. You have a high volume of fraudulent transactions
Fraud is another major red flag. If your business has too many transactions that get flagged as fraudulent, especially card-not-present fraud, you may be marked as a risk.
Card schemes track the dollar value of fraud as a percentage of your total sales. In many cases, anything above 0.20 percent is seen as too high.
To stay safe, use tools like 3D Secure, AVS checks, and fraud detection software. Also, monitor your traffic sources. If you are getting sudden spikes in traffic from unfamiliar locations, bots, or suspicious referrers, investigate immediately.
3. You operate in a High-Risk industry without proper controls
Some industries are seen as higher risk than others. These include crypto or adult content, dating platforms or coaching programs, supplements, or online gambling.
If you are in one of these sectors, card schemes will expect you to have stronger controls in place. That means clearer refund policies, better verification tools, and faster customer support.
It does not mean you are guilty by default, but it does mean you need to be more careful. Be ready to show that your business follows best practices for fraud prevention and dispute handling.
4. Your billing descriptor confuses customers
One of the most common reasons customers dispute charges is that they do not recognize the name on their bank statement. If your billing descriptor is different from your website or brand name, you are asking for trouble.
Let’s say your company is called FreshGlow Skincare, but the billing descriptor says FG Marketing LLC. A customer may not remember the purchase or might think it is a fraud. That can turn into a chargeback fast.
Make sure your descriptor matches what your customers expect. Add your website or a support phone number if possible. This small fix can reduce disputes and protect your reputation with card schemes.
5. You are getting too many refund requests
While refunds are better than chargebacks, a high refund rate is still a warning sign. Card schemes and payment processors watch for patterns. If a large portion of your customers are asking for their money back, it could mean something is wrong.
This could be due to poor product quality, confusing marketing, or unclear terms. Sometimes it is a sign that you are selling to the wrong audience. Other times, it shows that expectations are not being managed properly.
Look at what customers are saying in refund requests. Are they surprised by recurring charges? Are they confused by the pricing? Use this feedback to improve your offer and reduce complaints.
6. You are ignoring customer support issues
Customers often turn to chargebacks when they cannot get help. If your support team is slow to respond or hard to reach, frustrated buyers may go straight to their bank.
This is a fast way to increase your chargeback count and attract the wrong kind of attention from card schemes.
To avoid this, make sure your contact options are easy to find. Respond quickly, ideally within 24 hours. Offer solutions such as partial refunds, extended access, or replacement products. These simple steps can stop problems from becoming disputes.
7. You are using aggressive or misleading marketing
In 2025, marketing is under more scrutiny. If your ads or landing pages make claims that sound too good to be true, you could run into trouble.
Card schemes are paying closer attention to how businesses present themselves. If you make bold promises or use hidden upsells, you may face complaints and chargebacks. Regulators may also start looking into your business, especially if you operate in a high-risk industry.
Review your sales pages, emails, and ad copy. Be clear about what the customer is buying. Avoid fine print tricks or bait-and-switch tactics. What you promise must match what you deliver.
8. You have a sudden spike in volume or traffic
A rapid increase in sales or visitors may seem like good news, but it can also trigger a review from your processor or the card schemes. They may wonder whether you are part of a fraud ring or if your site has been hijacked.
If your growth is real, you have nothing to hide. But you still need to explain the spike. Keep track of your campaigns, marketing channels, and partnerships. If your payment provider asks, you should be able to show why sales have jumped.
Also, make sure your systems can handle higher volume. If your support team falls behind or your website starts to break, that could lead to more disputes.
9. You are getting negative reviews or public complaints
While card schemes mostly rely on data, they do take notice when a business gets flagged often by customers. If you have many bad reviews, complaints on forums, or social media posts accusing you of fraud, this can hurt your reputation with banks and processors.
Sometimes, these complaints are unfair. But often, they reflect real issues with how a business handles sales, refunds, or service quality.
Monitor what people are saying about your company online. Try to address problems directly and show that you care. A strong public response can stop small issues from growing into real threats.
10. You are not keeping proper records
In case of a dispute, the best way to win is to provide proof. This includes receipts, order confirmations, customer communication, and delivery details. If you cannot show these, you are more likely to lose the case.
Some businesses lose chargebacks not because they are wrong, but because they cannot back up their claims.
Keep your records organized. Store them for at least 12 months or as long as your processor recommends. Use automation tools to collect and file receipts, emails, and customer notes. This is your defense when things go wrong.
Bottom Line
Getting blacklisted by a card scheme can put your business in real trouble. But the good news is that it rarely comes out of nowhere. If you know the warning signs and act early, you can stay in good standing.
Watch your chargeback and fraud ratios. Make your billing and support easy to understand. Be honest in your marketing. Respond to issues quickly and keep detailed records of every sale.
If you operate in a high-risk sector, go the extra mile to build trust. Card schemes are not trying to block businesses; they just want to make sure the system is safe and fair.
By following the steps in this article, you give your business the best chance to grow without falling into danger. Prevention is always easier than fixing a problem after it happens.
Explore your options today —book a free consultation with our experts.
For further insights, read our article: “When a Virtual IBAN Is Not Enough: Understanding Settlement Risk”
Disclaimer
Widelia and its affiliates do not provide tax, investment, legal or accounting advice. Material on this page has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, investment, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. Please consult https://widelia.com/disclaimer/ for more information.
