Also called: ECP, ECM
What the Mastercard Excessive Chargeback Program is
The Mastercard Excessive Chargeback Program (ECP) monitors Mastercard chargebacks at the merchant ID level. It has two levels: Excessive Chargeback Merchant (ECM) and High Excessive Chargeback Merchant (HECM). Mastercard requires the acquirer to monitor merchants that cross the thresholds. As of 2026, ECM starts at 100 chargebacks and a 1.5% chargeback rate in a month. HECM starts at 300 chargebacks and a 3% rate.
You must meet both the monthly chargeback count and rate for a level. A high rate with too few chargebacks, or a high count below the rate threshold, does not meet that level’s test. Mastercard counts a chargeback in the month it is raised, including when the original sale happened earlier. A refund or a favorable dispute outcome does not erase the chargeback from the program count.
ECP tests both chargeback count and rate, and its penalties climb the longer your merchant ID stays over threshold.
How Mastercard measures chargebacks
The rate compares chargebacks raised in one calendar month with Mastercard transactions from the preceding month, multiplied by 10,000 to express the result in basis points. The count and rate use different months, so comparing this month’s disputes with this month’s sales gives you the wrong ratio.
For example, 150 chargebacks against 10,000 Mastercard transactions in the prior month equals 1.5%. That meets the rate and count thresholds for ECM, assuming the transactions and chargebacks are attributed to the same merchant ID. This illustrative calculation shows why a busy sales month does not automatically offset a spike in disputes.
How the ECM rate is calculated
| Prior month Mastercard transactions | 10,000 (illustrative) |
|---|---|
| Chargebacks raised this month | 150 (illustrative) |
| Calculated rate | 1.5% |
| Result | ECM threshold met |
Illustrative calculation using the as-of-2026 ECM thresholds. You must meet both the chargeback count and rate.
What ECP can cost your business
The fine schedule escalates when you remain over a threshold. As of 2026, the first month carries no fine; ECM fines are $1,000 in months two and three, then $5,000 in months four through six. HECM fines are $1,000 in month two, $2,000 in month three, and $10,000 in months four through six.
From month four, an issuer recovery assessment can add $5 for each chargeback above 300. At 400 chargebacks, that adds $500 to the month’s fine. Later penalties rise further: in months seven through eleven, the listed fines are $25,000 for ECM and $50,000 for HECM. Mastercard assesses the acquirer, not automatically the merchant directly. Your acquirer or processor may pass costs through, so separate ECP charges are not guaranteed to appear on your statement.
After six months in ECM or HECM, Mastercard can advise the acquirer on a reduction plan or require an additional customer risk review at the acquirer’s expense. You exit after chargebacks remain below the applicable threshold for three consecutive months. The cost risk is therefore both the assessment and continued scrutiny of your account.
What you can actually change
- Track by merchant ID. Review Mastercard chargebacks by merchant ID each month. Compare the month’s chargebacks with the prior month’s Mastercard transaction count, rather than using the same month’s sales.
- Find repeat causes. Group disputes by reason and identify repeat issues such as unclear billing, difficult cancellations, delayed refunds, or orders customers do not recognize. Fix the process driving the disputes, not just individual cases.
- Make resolution easy. Show clear billing descriptors, refund and cancellation terms, and a working customer contact route. These steps help customers resolve problems with you before they file a chargeback.
- Confirm pass-throughs. If you receive an ECP notice, ask for the merchant ID, program level, monthly count and rate, fine period, and any issuer recovery assessment. Compare any resulting debit with the chargeback records and your processing agreement.
Frequently asked questions
What are the Mastercard ECP thresholds?
As of 2026, ECM requires 100 to 299 chargebacks and a rate of at least 1.5%. HECM requires 300 or more chargebacks and a rate of at least 3%. You must meet both the count and rate for the applicable level in the same program month.
Does Mastercard charge the merchant directly for ECP fines?
Mastercard’s rules describe assessments to the acquirer. An acquirer or processor may pass those costs to you, but the ECP materials do not establish that every merchant receives a direct charge or a standard statement line.
How long does it take to leave the ECP?
You exit after your chargebacks remain below the applicable program threshold for three consecutive months. A HECM account that falls below the HECM threshold but still meets ECM moves to the ECM level rather than leaving the program.
Do refunds remove a chargeback from the ECP count?
No. The chargeback counts in the month Mastercard receives it, even if a refund was issued or the dispute outcome was favorable. Track refunds and disputes separately so your internal records show both customer outcomes and the program count.