Starting 1st April 2025, Visa will roll out key changes to the Visa Acquirer Monitoring Program (VAMP) and merchants need to be prepared. If you're one of the many businesses that process payments online, you’ll want to pay attention. These updates are set to reshape how Visa monitors chargebacks and disputes, with the potential to impact your bottom line. In this post, we’ll dive into what’s changing and what it could mean for you in the months ahead.
What is VAMP?
The Visa Acquirer Monitoring Program (VAMP) is a risk management initiative designed to help acquirers and merchants identify and address fraud and dispute risks more effectively. Let’s review the key changes in detail.
Key changes under the new VAMP
- Consolidation of monitoring programs: The existing Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) will be retired, with their functions integrated into the unified VAMP. This consolidation simplifies the monitoring process by providing a single framework for assessing both fraud and dispute activities.
- Unified fraud and dispute metrics: VAMP introduces a combined metric that accounts for both fraud and non-fraud disputes. This holistic approach offers a clearer picture of a merchant's risk profile, encouraging more effective management of dispute and fraud rates.
- Updated thresholds and enforcement: The program establishes new thresholds for acceptable fraud and dispute ratios. Merchants and acquirers exceeding these limits may face increased scrutiny and potential penalties. The shift towards risk-based enforcement allows for more flexibility, accommodating varying levels of risk appetite among clients. This approach allows for tailored compliance actions based on a merchant's specific risk profile, ensuring that penalties and monitoring are proportionate rather than uniformly applied, thereby reducing unnecessary disruptions for lower risk businesses.
- Inclusion of resolved disputes in VAMP calculations: Following recent changes, the logic behind VAMP ratio calculations has been updated. Previously, TC40 messages related to transactions with accepted Rapid Dispute Resolution (RDR) or Cardholder Dispute Resolution Network (CDRN) outcomes were excluded. Now, with the recent change announces on 10th March 2025, all TC40 messages will be included in the VAMP ratio, regardless of whether the dispute was resolved through RDR or CDRN.
VAMP thresholds
Visa has introduced new thresholds under the VAMP framework to better assess and mitigate risks associated with fraud and chargebacks. Merchants and acquirers should be aware of the following key thresholds:
Merchant thresholds
From 1st April 2025, merchants will be considered high-risk if their VAMP Ratio exceeds 1.5%, provided the acquirer's VAMP Ratio remains below 0.3%. This threshold will become more stringent from 1st January 2026, when the Excessive VAMP Ratio limit for merchants will be reduced to 0.9%.
Separately, merchants will be flagged for excessive enumeration if they process over 300,000 enumerated transactions per month, with an Enumeration Ratio exceeding 20%. This threshold will apply from 1st April 2025 and will remain unchanged going forward.
Card acquirer thresholds
From 1st April 2025, acquirers exceeding an Excessive VAMP Ratio of 0.5% will be flagged. By 1st January 2026, Visa will introduce an Above Standard VAMP Ratio threshold of 0.3%, while maintaining the Excessive VAMP Ratio at 0.5%.
Implications for merchants and acquirers
The enhanced VAMP framework necessitates a proactive approach to fraud and dispute management.
- Upgrade your fraud detection strategy:One of the biggest changes with VAMP is the tighter chargeback and dispute thresholds. Merchants who go over these limits will face a lot more scrutiny from Visa. So, it’s not enough to rely on basic fraud prevention measures anymore. To stay compliant, you’ll need more advanced risk management and authentication tools, such as 3D Secure 2, to catch issues like card testing or account takeovers before they turn into disputes. The goal? Not just staying below the threshold but actively reducing fraud from the get-go.
- Improve your dispute resolution process: VAMP also puts a greater focus on resolving disputes quickly and effectively. While tools like Rapid Dispute Resolution (RDR) still play a valuable role, particularly when non-fraud chargebacks are replaced with non-fraud RDRs, which do not count towards the VAMP ratio, their impact has been somewhat reduced. With all TC40 messages now included in VAMP calculations, regardless of dispute resolution status, relying solely on RDR is no longer sufficient. Rather than waiting for chargebacks to pile up, take a more proactive approach. For example, acknowledge customer complaints early, engage with them directly and resolve issues quickly. By doing this, you’ll be better placed to reduce chargebacks and also build stronger customer relationships.
- Keep a close eye on your fraud metrics: With VAMP, penalties for exceeding chargeback thresholds are more severe, so you can’t afford to ignore your fraud-related payment data. Many businesses track these numbers monthly or quarterly, but under the new rules, that may not be enough. Work with your PSP to ensure real-time monitoring that will help catch spikes in disputes or fraud as soon as they happen. The earlier you spot a problem, the faster you can fix it, before it leads to penalties.
- Work closely with your acquirer: Acquirers will have their hands full with these changes too. Since VAMP demands more from both merchants and acquirers, you’ll need to rely on your acquirer for better risk management and support. This could mean more collaboration between you and your acquirer to ensure you’re meeting the new standards. Make sure your acquirer is up to speed with VAMP so they can help you navigate the changes effectively.
How can emerchantpay support you?
At emerchantpay, we are committed to helping businesses navigate the evolving payments landscape with confidence. Our solutions are designed to ensure compliance with scheme requirements, including Visa's updated VAMP framework. Here's how we can support you:
- Advanced fraud prevention tools: Our advanced fraud detection solutions help merchants identify and mitigate fraudulent transactions before they become chargebacks.
- Comprehensive chargeback management: We provide expert guidance and automated tools to help merchants manage disputes efficiently and reduce chargeback ratios.
- Proactive compliance monitoring: Our team continuously monitors regulatory changes and provides insights to ensure your business remains compliant with industry standards.
- Dedicated support and consultation: Our payments experts are available to assist you with tailored strategies that align with Visa's compliance requirements, helping you stay ahead of potential risks.
With emerchantpay as your payment partner, you can focus on growing your business while we handle the complexities of fraud prevention, dispute resolution and ongoing compliance with evolving card scheme requirements.