What is the purpose of the High-Risk Chargeback Monitoring Program (HRCMP)?

The High-Risk Chargeback Monitoring Program (HRCMP) is designed primarily to keep track of chargeback rates among merchants deemed high-risk. This program is crucial because it helps in identifying merchants that exceed predetermined chargeback thresholds, which may indicate potential problems such as fraudulent transactions or inadequate compliance with payment processing standards.

By notifying merchant banks about these high-risk merchants and their chargeback rates, the program enables banks to take appropriate action, which might include closer scrutiny of transactions, better transaction monitoring, or even terminating relationships with merchants with consistently high chargeback levels. The aim is to mitigate risk and protect the integrity of the payment processing system.

In contrast, monitoring low-risk merchants, identifying fraudulent activities in various locations, or promoting high-volume merchants do not align with the specific objectives of the HRCMP. The focus is specifically on high-risk merchants and managing the associated chargeback issues, making option C the correct choice.