Visa is overhauling its chargeback and fraud monitoring systems with the introduction of the Visa Acquirer Monitoring Program (VAMP), set to replace the Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) in April 2025.
These changes bring stricter thresholds, streamlined processes, and enhanced monitoring to the European payment ecosystem, significantly raising the stakes for merchants and acquirers.
Note
While these updates were originally intended for implementation solely in Europe, Visa has since revealed plans to expand the new VAMP framework on a global scale. The following details are based on the European rollout, as Visa has yet to confirm whether the global program will mirror these specifics.
At Corepay, we understand how critical it is to stay ahead of compliance challenges. That’s why our sister company, CB-Alert, specializes in chargeback management and fraud prevention solutions tailored to these new standards.
Key takeaways
What’s visa doing to VAMP, VDMP, and VFMP?
- Visa is consolidating its three payment integrity and dispute monitoring programs into the enhanced Visa Acquirer Monitoring Program (VAMP).VDMP and VFMP retirements.
- The Visa Dispute Monitoring Program (VDMP) will officially end on March 31, 2025.
- The Visa Fraud Monitoring Program (VFMP) will also conclude on the same date.
- The initial implementation of VAMP will begin in the Visa Europe region.
- The “above standard” threshold for merchants is being eliminated, but it will still apply to acquirers under the updated guidelines.
- A new combined metric will track transaction counts for all disputes, including both fraud and non-fraud, replacing previous metrics.Visa is adopting a risk-based enforcement model designed to offer greater flexibility and accommodate varying risk tolerances among clients.
- A transitional period from April 1, 2025, to December 31, 2025, will allow stakeholders to adapt to the updated program requirements.
What Is VAMP?
VAMP is Visa’s latest initiative to oversee and enforce compliance among European acquirers and their merchants. Designed to reduce risks associated with excessive chargebacks and fraud, VAMP replaces VDMP and VFMP while introducing streamlined processes and stricter thresholds.
Key Features of VAMP
- Unified Compliance Framework: Combines fraud and non-fraud disputes for more holistic monitoring.
- Stricter Thresholds: Starting April 1, 2025, acquirers exceeding a 0.5% chargeback ratio will face fines, with further reductions to 0.3% by 2026. Merchants must stay below a 0.9% ratio to avoid penalties.
- Advanced Fraud Detection: Implements the Visa Account Attack Intelligence (VAAI) Score to enhance fraud prevention.
- Enhanced Metrics: VAMP introduces the VAMP Ratio and Enumeration Ratio to measure fraud and dispute activity more precisely.
What Changes Will VAMP Bring?
Threshold Adjustments
| Program Level | Threshold Requirements |
|---|---|
| VAMP Card-Absent Dispute Criteria | 750 disputes with a 1% dispute ratio |
| VAMP Card-Absent Fraud Criteria | $500,000 in card-not-present fraud with a 1% fraud-to-sales ratio |
| Date | Acquirer “Above Standard” Threshold | Acquirer “Excessive” Threshold | Merchant “Excessive” Threshold |
|---|---|---|---|
| Starting April 1, 2025 | Exceeds 0.5% chargeback ratio | Not Applicable | Exceeds 1.5% chargeback ratio |
| Starting January 1, 2026 | Between 0.3% and 0.5% chargeback ratio | Exceeds 0.5% chargeback ratio | Exceeds 0.9% chargeback ratio |
Current vs. Updated Thresholds
| Program | Monthly Threshold (Current) | Monthly Threshold (Updated) |
|---|---|---|
| VDMP Early Warning | Chargeback ratio of 0.65% and up to 75 chargebacks | Combined fraud/non-fraud disputes under 1% ratio |
| VDMP Standard | Chargeback ratio of 0.9% and up to 100 chargebacks | Adjusted to stricter ratios under VAMP |
| VDMP Excessive | Chargeback ratio of 1.8% and up to 1,000 chargebacks | Consolidated into unified VAMP criteria |
| VFMP Early Alert | $50,000 in chargebacks and 0.65% of total sales | $500,000 in fraud-to-sales ratio |
| VFMP Standard | $75,000 in chargebacks and 0.9% of total sales | Unified fraud/non-fraud thresholds |
| VFMP High Risk | $250,000 in chargebacks and 1.8% of total sales | Higher penalties for excessive fraud |
Enumeration Ratio Updates
| Ratio Type | Numerator | Denominator | Formula |
|---|---|---|---|
| VAMP Ratio | Count of Reported + Non-Fraud Disputes | Count of Total Sales | VAMP Ratio = (Reported + Non-Fraud Disputes) / Total Sales |
| VAMP Enumeration Ratio | Count of Enumerated Transactions | Count of Total Sales | Enumeration Ratio = Enumerated Transactions / Total Sales |
How Does VAMP Impact Merchants?
VAMP significantly raises the stakes for merchants, particularly those operating in the European market.
- Stricter Acquirer Limits: Acquirers may impose stricter chargeback thresholds to ensure their portfolios comply with Visa’s updated standards. This means merchants could face penalties or account termination even if they remain within Visa’s limits.
- Financial Consequences: Merchants exceeding acquirer-imposed thresholds may face increased fines, reduced authorization rates, and higher reserve requirements.
- Operational Adjustments: To stay compliant, merchants must optimize fraud prevention, improve dispute management, and leverage advanced tools to mitigate risks.
Lower Your VAMP Ratio with Delayed Capture
Looking to reduce your VAMP (Visa Merchant Purchase) ratio? Implementing Delayed Capture can significantly lower fraud risk and improve your dispute management process. Here’s how it works and why it’s a smart strategy for merchants.
What is Delayed Capture?
Delayed Capture, or authorization delay, allows merchants to authorize a customer’s card but postpone capturing funds. This gives merchants a critical window to review transactions for potential red flags before finalizing them.
Why Use Delayed Capture?
Fraudulent activity often happens shortly after a transaction is captured. By delaying capture, you get time to identify suspicious transactions and cancel them before they escalate into chargebacks or fraud reports.
Key Benefits:
- Fraud Prevention: Data shows that up to 15% of fraud cases occur within the first 7 days after capture. Delaying capture enables merchants to spot and void risky transactions early.
- Dispute Reduction: Pending authorizations can’t be disputed. Cardholders are directed to contact merchants first, giving you a chance to resolve issues before they reach the bank.
- Proactive Fraud Alerts: Merchants can still receive Ethoca alerts on authorized transactions, allowing them to intervene before funds are captured.
What Is Visa OneERS?
As part of the updates to VAMP, Visa is introducing a groundbreaking risk technology tool called OneERS. This case management platform empowers acquirers to independently monitor their portfolio performance while automating key aspects of case management to enhance operational efficiency.
Key Features of OneERS
- Performance Dashboards: OneERS provides acquirers with a comprehensive dashboard to track performance drivers, offering valuable insights for self-service case management.
- Integrated Risk Services: Built for universal risk management within the Visa ecosystem, OneERS integrates seamlessly into Visa Online through a Microsoft Dynamics-based interface.
- Automation: The platform streamlines case management processes, reducing manual effort and improving response times for acquirers.
OneERS will be instrumental in ensuring compliance with VAMP’s stricter standards, helping acquirers identify and address potential risks proactively.
VAMP Enforcement Levels
Acquirers who exceed VAMP thresholds are flagged and required to implement corrective actions. Visa’s program identifies two distinct levels of performance issues:
Above Standard Level
This level highlights a significant rise in fraud, dispute, or enumeration activities compared to market standards. Acquirers flagged as “Above Standard” must:
- Investigate performance issues.
- Develop and execute remediation strategies.
Visa actively monitors these activities to ensure corrective actions are effective.
Excessive Level
The “Excessive” level signifies a severe increase in fraud, dispute, or enumeration activities relative to market standards. Acquirers at this level face:
- Increased scrutiny of individual merchants within their portfolio.
- Grouping and analysis of merchant descriptors to identify systemic issues.
- Deployment of advanced strategies to monitor payment facilitators and other ecosystem players.
Acquirers flagged as “Above Standard” or “Excessive” due to fraud and disputes are subject to fines, designed to encourage better fraud and dispute management practices.
VAMP Fines and Grace Periods
Visa has outlined the following fine structures for acquirers and merchants under VAMP:
| Level | Fine Amount (per dispute) |
|---|---|
| Above Standard Acquirer | $5 for card-not-present (CNP) TC40 fraud and TC15 non-fraud disputes |
| Excessive Acquirer | $10 for CNP TC40 fraud and TC15 non-fraud disputes |
| Excessive Merchant | $10 for CNP TC40 fraud and TC15 non-fraud disputes |
Grace Period
- First-time violations within a rolling 12-month period are granted a three-month grace period for corrective action.
- After the grace period, fines are applied for each non-fraud dispute or TC40 report involving merchants with a VAMP ratio exceeding 0.3% of transactions.
- Certain regions, such as Europe and Asia-Pacific, may exempt acquirers from fines if unsecured dispute fees are applied.
Timeline for VAMP Changes
- Advisory Period: April 1, 2025, to June 30, 2025 — Acquirers are encouraged to implement risk controls without penalties.
- Fine Enforcement: Starting July 1, 2025, Visa will begin assessing fines in accordance with the revised VAMP thresholds and enforcement levels.
What Should Merchants and Acquirers Do?
Below are the steps merchants and acquirers should take for VAMP compliance.
- Utilize Visa’s Tools: Dispute management services such as Verifi CDRN and Visa Rapid Dispute Resolution (RDR) help resolve disputes without impacting VAMP monitoring ratios.
- Implement Order Insight and CE 3.0: Using Order Insight and Compelling Evidence 3.0can minimize fraud and disputes, protecting monitoring ratios.
- Optimize Risk Controls: Leverage tools like OneERS and CB-Alert’s fraud prevention technologies to stay below thresholds and ensure compliance.
By taking advantage of these tools and services, merchants and acquirers can reduce their exposure to fines and protect their operations under VAMP’s updated guidelines.
What Is The Visa Chargeback Threshold?
The Visa chargeback threshold is generally set at 0.9% of total transactions processed within a calendar month or up to 100 chargebacks.
Merchants exceeding this limit may be placed into a chargeback monitoring program, where they face heightened scrutiny and are required to take corrective measures to bring their metrics back within compliance.
The Impact of VAMP on Subscription Merchants
With the implementation of VAMP’s count-based metrics, the subscription business model is facing significant challenges. Here’s why.
Count-Based Weighting
Under VAMP, all transactions—whether they are low-value paid trials or full monthly subscriptions—carry equal weight in determining a merchant’s VAMP ratio. For example, a €1.99trial affects the ratio just as much as a €59.99 recurring subscription.
How Can Acquirers Be Proactive?
Here are key strategies to better prepare for upcoming adjustments.
Evaluate Merchant Impact
Take a close look at your merchant base.
Enhance Fraud Prevention Infrastructure
Ensure your anti-fraud systems and supporting technologies are up to par.
- Invest in Advanced Tools: Evaluate and implement stronger fraud prevention solutions where needed. Although these upgrades require initial resources, they provide long-term protection against evolving threats.
- Stay Adaptive: Regularly review the capabilities of your fraud prevention tools to keep up with new risks in the payments ecosystem.
Collaborate With Providers
Engage with key players in your payments, fraud, and dispute management network. Ask providers about their plans for addressing the upcoming changes and how their systems will support compliance.
Share Crucial Data With Merchants
Transparency with merchants is essential to help them stay informed and compliant.
- Provide Dispute Data: Many acquirers withhold dispute details when liability shifts to them. However, disputes still impact the merchant’s ratio and their compliance status. Sharing this data empowers merchants to monitor and mitigate risks.
- Promote Education: Use this opportunity to help merchants better understand their dispute ratios and overall payments landscape.
Prioritize Merchant Experience
Consider how you can support merchants who may face challenges under the new regulations. If merchants are flagged for programs like VAMP, ensure they receive the technical and customer service they need to navigate the situation.
A proactive, merchant-first approach will not only improve compliance but also strengthen relationships and long-term satisfaction.
How Corepay and CB-Alert Help Merchants Stay Compliant
Corepay and CB-Alert offer tailored solutions to help merchants adapt to the new VAMP standards.
CB-Alert automates data aggregation and evidence collection, ensuring all submissions align with Visa’s new compliance guidelines. Our tools provide real-time alerts to help merchants address potential issues proactively.
Advanced Fraud Prevention
With enhanced fraud detection algorithms, CB-Alert integrates seamlessly with existing prevention tools to reduce chargebacks and maintain low fraud ratios. Our proactive approach ensures merchants stay ahead of evolving threats.
Chargeback Management
Our platform simplifies dispute resolution using tools like Rapid Dispute Resolution (RDR), Cardholder Dispute Resolution Network (CDRN), and Visa Compelling Evidence 3.0. By deflecting disputes effectively, merchants can improve compliance and minimize penalties.
For merchants flagged under VAMP, we assist in crafting detailed remediation plans to address root causes of non-compliance. These plans are submitted within Visa’s required timelines to ensure continued operations.
Preparing for the Future with Corepay
As VAMP’s stricter thresholds and enhanced monitoring take effect, European and global merchants and acquirers must adopt robust strategies to stay compliant. Corepay, through CB-Alert, offers the expertise and tools needed to navigate these changes seamlessly.
Find out how Corepay can help prepare you for VAMP today.
