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) on April 1, 2025.
Latest Change to VAMP
On March 11, Visa made a notable change to the program’s rules. Fraud-related disputes resolved through Rapid Dispute Resolution (RDR) or CDRN alerts will no longer be excluded from the VAMP ratio calculation.
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.
Changes to VAMP Ratio and RDR
- 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.
- The new VAMP ratio calculation is:(Reported fraudulent transactions from TC40 data + Non-fraud disputes) ÷ Total settled transactions
- Visa originally announced that disputes resolved through certain Visa-approved methods would be excluded from this calculation, regardless of whether the dispute was fraud-related. These methods included Rapid Dispute Resolution (RDR), Order Insight, Compelling Evidence 3.0, and alerts from Verifi CDRN.
- As of March 11, Visa updated its policy: Fraud-related disputes resolved through RDR or CDRN will no longer be excluded from the VAMP ratio calculation. Non-fraud disputes resolved through these methods will still be excluded.
Implications for Merchants and Acquirers
- Merchants who rely heavily on RDR and CDRN will likely see higher VAMP ratios, which could lead to enforcement actions including fines and fees.
- Acquirers must adjust their tracking and calculations to reflect this rule change, adding complexity to their implementation efforts before the April 1 launch date.
- A transitional period from April 1, 2025, to December 31, 2025, will allow stakeholders to adapt to the updated program requirements.
What Is VAMP?
The Visa Acquirer Monitoring Program (VAMP) is Visa’s latest initiative to oversee and enforce compliance among acquirers and their merchants. Designed to reduce risks associated with excessive chargebacks and fraud, VAMP replaces the Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) while introducing streamlined processes, stricter thresholds, and an updated fraud-to-sales calculation model.
A recent update from Visa, announced on March 11, 2025, has significant implications for how fraud-related disputes factor into VAMP compliance. Previously, disputes resolved through Rapid Dispute Resolution (RDR) or Verifi CDRN alerts were excluded from the VAMP ratio calculation. However, Visa has now clarified that fraud-related disputes settled through RDR or CDRN will no longer be excluded from this calculation.
Key Features of VAMP
- Unified Compliance Framework: VAMP consolidates fraud and non-fraud disputes for a more holistic risk assessment.
- Updated Dispute Tracking: The new VAMP Ratio accounts for all reported fraudulent transactions (from TC40 data) and non-fraud disputes, divided by total settled transactions.
- 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 maintain a ratio below 0.9% to avoid penalties.
- Revised Fraud Calculation: Fraud-related disputes resolved through RDR or CDRN will now count toward the VAMP ratio, increasing the risk of non-compliance for merchants relying on these tools.
- Advanced Fraud Detection: Visa’s Account Attack Intelligence (VAAI) Score enhances fraud prevention efforts.
- Enumeration Ratio Tracking: Visa will also measure the Enumeration Ratio, which tracks suspicious transaction attempts that may indicate fraud patterns.
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 |
Chargeback Ratio Limits
| 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 |
The Change to RDR and VAMP Ratio
At the core of these changes is how Visa calculates the new VAMP Ratio, which assesses all card-not-present transactions using the following formula:
(Reported fraudulent transactions from TC40 data + Non-fraud disputes) ÷ Total settled transactions
Visa originally announced that disputes resolved through certain Visa-approved methods—including Rapid Dispute Resolution (RDR), Order Insight, Compelling Evidence 3.0, and alerts from Verifi CDRN—would be excluded from this calculation.
However, on March 11, Visa clarified that fraud-related disputes resolved through RDR or CDRN will now be included in the VAMP ratio calculation. Non-fraud disputes resolved through these methods will still be excluded.
How Does VAMP Impact Merchants?
Visa’s recent adjustments mean that merchants relying heavily on RDR and CDRN to resolve disputes may see an increase in their VAMP ratios, which could trigger enforcement actions such as fines and fees.
- Stricter Acquirer Limits: Acquirers may impose tighter chargeback thresholds to maintain Visa compliance, increasing merchant pressure.
- Financial Consequences: Higher VAMP ratios could lead to penalties, reduced authorization rates, and increased reserve requirements.
- Operational Adjustments: Merchants will need to rethink fraud prevention strategies, implement more robust chargeback mitigation measures, and leverage advanced monitoring tools to stay compliant with Visa’s updated standards.
For acquirers, who were already scrambling to put the new program in place before the April 1 launch, this change complicates compliance tracking, requiring updates to how merchant ratios are calculated and monitored.
Lower Your VAMP Ratio with Delayed Capture
Looking to reduce your VAMP (Visa Acquirer Monitoring Program) ratio? Implementing Delayed Capture can significantly lower fraud risk and improve your dispute management process. With Visa’s latest update that fraud-related disputes resolved through RDR and CDRN will now count toward the VAMP ratio, merchants must explore every available strategy to keep their ratios within acceptable limits.
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 fraud before finalizing them, helping to prevent disputes that could negatively impact the VAMP ratio.
Why Use Delayed Capture?
With Visa’s revised fraud calculation rules, merchants who previously relied on RDR and CDRN to reduce their fraud ratio may now see higher VAMP ratios. Delayed Capture offers an alternative method to screen transactions before funds are finalized, reducing fraud-related disputes before they occur.
Key Benefits:
- Fraud Prevention: Fraudulent activity often occurs shortly after capture. Data shows that up to 15% of fraud cases happen within the first 7 days after a transaction is captured. By delaying capture, merchants can spot and void risky transactions early, preventing them from impacting their VAMP ratio.
- Dispute Reduction: Pending authorizations can’t be disputed, meaning fraud-related disputes won’t be initiated until after capture. This gives merchants more time to investigate and cancel fraudulent transactions before they escalate into chargebacks or fraud reports.
- Proactive Fraud Alerts: Merchants can still receive Ethoca alerts and other fraud notifications on authorized transactions before capture, allowing them to intervene before funds are finalized. This proactive approach can reduce overall dispute volume and help keep merchants below Visa’s new fraud thresholds.
With Visa’s updated fraud tracking methodology under VAMP, merchants should reevaluate their fraud prevention and dispute mitigation strategies. Delayed Capture is an effective tool that provides greater control over transaction risk, helping merchants avoid enforcement actions, fines, and penalties.
What Is Visa OneERS?
As part of the updates to VAMP, Visa is introducing OneERS, a new risk technology tool designed to enhance acquirers’ ability to monitor portfolio performance and manage compliance. This case management platform streamlines risk oversight and automates key processes, ensuring acquirers can respond quickly to changes in fraud and dispute ratios—which is particularly important given Visa’s recent updates to the VAMP ratio calculation.
Key Features of OneERS
- Performance Dashboards: OneERS provides acquirers with a real-time view of performance drivers, helping them track VAMP ratio fluctuations and identify high-risk merchants before they exceed thresholds.
- Integrated Risk Services: Built for comprehensive risk management, OneERS integrates seamlessly into Visa Online through a Microsoft Dynamics-based interface, allowing acquirers to monitor and mitigate fraud trends more effectively.
- Automation: The platform streamlines case management and dispute tracking, reducing manual effort and enabling acquirers to react swiftly to sudden increases in fraud-related disputes.
OneERS will be instrumental in ensuring compliance with Visa’s stricter standards, especially now that fraud-related disputes resolved via RDR and CDRN are included in the VAMP ratio calculation. Acquirers will need to adjust their risk monitoring strategies to factor in these newly counted fraud disputes.
VAMP Enforcement Levels
Acquirers who exceed Visa’s VAMP thresholds must implement corrective actions. The March 11 rule change means that some acquirers may see unexpected increases in their fraud-to-sales ratio, making it more likely they’ll be flagged under Visa’s two enforcement levels:
Above Standard Level
This level highlights a notable rise in fraud, disputes, or enumeration activities compared to market benchmarks. Given Visa’s updated VAMP ratio formula, acquirers flagged as “Above Standard” may see higher ratios than before if they rely heavily on RDR or CDRN for dispute resolution.
Acquirers flagged as Above Standard must:
- Investigate portfolio performance issues related to rising VAMP ratios.
- Develop and implement new remediation strategies that account for the inclusion of RDR and CDRN fraud-related disputes.
- Adjust merchant monitoring to ensure proactive fraud prevention and compliance tracking.
Visa will actively monitor these activities to ensure corrective actions effectively lower fraud and dispute levels.
Excessive Level
The Excessive level signifies a severe increase in fraud, disputes, or enumeration activity beyond acceptable market standards. Acquirers at this level face greater scrutiny and potential fines, particularly if their VAMP ratios increase due to the new fraud calculation rules.
Acquirers flagged as Excessive will be required to:
- Conduct detailed risk analysis on individual high-risk merchants within their portfolio.
- Group and analyze merchant descriptors to identify systemic fraud issues.
- Deploy enhanced fraud monitoring and intervention measures to prevent further escalation.
Acquirers flagged as Above Standard or Excessive due to fraud and disputes face penalties and potential enforcement actions. The latest VAMP updates reinforce Visa’s commitment to holding acquirers accountable for merchant fraud management, making proactive monitoring through tools like OneERS more crucial than ever.
VAMP Fines and Grace Periods
Visa has outlined the following fine structures for acquirers and merchants under VAMP. With the recent update that fraud-related disputes resolved through Rapid Dispute Resolution (RDR) and Verifi CDRN will now count toward the VAMP ratio, acquirers and merchants relying on these resolution methods may see increased dispute volumes, potentially leading to higher fines.
| 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
Visa allows a three-month grace period for first-time violations within a rolling 12-month period. During this time, merchants and acquirers flagged under VAMP can take corrective action without immediate penalties.
However, once the grace period ends:
- Fines will be applied for each non-fraud dispute or TC40 fraud report if the merchant’s VAMP ratio exceeds 0.3% of total transactions.
- Given the new calculation method, merchants using RDR and CDRN to manage fraud disputes may see a higher ratio than expected, potentially leading to fines more quickly.
- Certain regions, including Europe and Asia-Pacific, may provide exemptions for acquirers if unsecured dispute fees are already being applied.
Timeline for VAMP Changes
| Phase | Date | Details |
|---|---|---|
| Advisory Period | April 1, 2025 – June 30, 2025 | Acquirers are encouraged to implement risk controls without penalties. |
| Fine Enforcement | Starting July 1, 2025 | Visa will begin assessing fines based on updated VAMP thresholds and enforcement levels. |
With the recent changes, acquirers and merchants must adjust their fraud management strategies to mitigate the impact of fraud-related disputes now being included in the VAMP ratio. Monitoring dispute trends early in the advisory period can help businesses avoid fines when enforcement begins in July 2025
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.
