Changes to Visa’s Acquirer Monitoring Program (VAMP)

Effective April 1, 2025, Visa is introducing enhancements to its fraud and dispute monitoring framework, consolidating existing programs into the new Visa Acquirer Monitoring Program (VAMP).

As your payment partner, we want to ensure you’re fully prepared for these changes and understand how they impact your business.

What’s changing?

Visa is retiring the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP), replacing them with the new VAMP. This update is designed to provide better oversight and risk management across fraud, disputes, and enumeration attacks (attempts to guess valid card details).

Key updates for merchants

Consolidated fraud & dispute monitoring

Instead of tracking fraud and disputes separately, Visa will now use a combined metric to assess risk levels.

A new VAMP Ratio will measure fraud and disputes against total transactions to determine compliance.

How this affects you as a merchant

Updated thresholds – Visa is introducing new benchmarks for fraud and disputes, which means merchants exceeding these limits may face corrective measures.

Potential fines – If a merchant’s fraud/dispute rates exceed Visa’s new thresholds, fines may apply (up to $10 per disputed or fraudulent transaction).

Grace period – From April 1 to June 30, 2025, Visa will monitor activity and provide guidance, but fines will not be enforced until July 1, 2025.

What you can do to stay compliant

Monitor your fraud and dispute rates closely to ensure they remain within Visa’s acceptable limits.
Enhance security measures to prevent fraud, including strong authentication, velocity checks, and fraud detection tools.

Utilize Rapid Dispute Resolution (RDR) – This tool automatically resolves disputes before they escalate into chargebacks, helping you reduce both fraud and dispute rates while improving your VAMP ratio. Because disputes resolved through RDR aren’t included in the overall VAMP calculation, it’s an efficient way to maintain compliance and avoid unnecessary expenses.

Work with us – As your acquirer, we will provide guidance and tools to help you stay compliant and avoid unnecessary costs.

We are committed to keeping your payments secure and ensuring a smooth transition into this updated program. If you have any questions or need support, please don’t hesitate to reach out to your account manager.

Visa Acquirer Monitoring Program (VAMP) – Q&As

How can merchants access fraud reports, including TC40 data?

Merchants can download fraud reports, including TC40 data, directly from the Merchant Portal under the “Statements” tab, access them via our API, or even have them sent by email.

How is the new VAMP ratio calculated?

The VAMP ratio is calculated using the following formula:

The VAMP ratio measures fraud and chargeback activity relative to total Visa transactions in a given month. It includes all non-fraud chargebacks and fraudulent transactions reported within that month, regardless of when the original transaction occurred. For example, if a transaction happened in January but the fraud or chargeback was reported in February, it will be counted in February’s VAMP calculation.

Here’s how it works in simple terms:

1. Start with two types of problematic transactions:

Fraud cases (TC40 reports)
Non-fraud chargebacks (like customer disputes)

2. Subtract the fraud cases that were successfully resolved through Visa’s Rapid Dispute Resolution (RDR).

If an issue was fixed through RDR, it doesn’t count against you.

3. Divide the final number by the total Visa transactions for the month.

This gives the percentage of disputed or fraudulent transactions compared to your total Visa sales.

Example:
If a merchant had:

50 fraud cases (TC40s in specific month)
30 chargebacks (non-fraud disputes)
20 fraud cases resolved via RDR
10,000 total Visa transactions

The calculation would be: (50+30−20)÷10,000=0.006=0.6%

This percentage is what Visa monitors. If it gets too high, merchants may face fines or corrective actions.

What are the new VAMP thresholds?

If a merchant’s VAMP ratio exceeds 0.3%, they may be classified as non-compliant and subject to fees.

What VAMP ratio should merchants aim to maintain?

Any merchant exceeding the 0.3% threshold may incur potential fees starting from July 2025. Therefore, merchants should aim to maintain their VAMP ratio below 0.3% to ensure compliance and avoid penalties.

On what basis is the VAMP ratio calculated?

The VAMP calculation is typically done per descriptor. However, in cases where data aggregation occurs, it may also be calculated per company. To remain compliant, merchants should aim to stay below the threshold at both levels.

Will the chargeback ratio limit (0.90%) change under VAMP?

The current 0.90% chargeback ratio limit is part of the Visa Dispute Monitoring Program (VDMP), which will be discontinued as of April 1, 2025. Going forward, non-fraud chargebacks will be included in the new VAMP ratio calculation.

Will VAMP apply globally or only to specific regions?

The VAMP program applies to all Visa transactions worldwide, regardless of the country in which the card was issued or processed. The new regulations will take effect starting April 1, 2025, across all regions.

How are Rapid Dispute Resolutions (RDRs) factored into the VAMP calculation?

Only RDRs that are directly linked to specific TC40 transactions will be deducted from the total fraud/dispute count. If a transaction was successfully resolved via RDR, no chargeback can be issued for the same transaction.