As fraud becomes more sophisticated and card brands tighten monitoring programs, understanding TC40 data is no longer optional. For merchants operating in high-risk industries or experiencing increased fraud activity, TC40 data now plays a central role in how acquirers and card networks assess your business, especially under Visa’s updated Acquirer Monitoring Program (VAMP).
While TC40 reports have always been part of the behind-the-scenes fraud ecosystem, recent changes to VAMP make them more visible, more impactful, and more dangerous to ignore.
What Is TC40 Data?
TC40 data is a fraud reporting mechanism used by Visa. When a cardholder files a fraud claim, the issuing bank sends Visa a TC40 record that contains key details about the transaction and merchant. This record is not a chargeback. It is a fraud alert sent to Visa, the merchant’s acquiring bank, and other relevant parties to log the event and update fraud databases.
Each TC40 report typically includes:
- Merchant name and category
- Transaction details (date, amount, location)
- Cardholder information (partially masked)
- Bank identifiers for both issuer and acquirer
- Card presence status (online or in-person)
Mastercard uses a similar system called SAFE (System to Avoid Fraud Effectively). Both are designed to track fraud exposure across the network — not to resolve disputes with merchants.
How VAMP Changed the Stakes
With the introduction of Visa’s VAMP program, the importance of TC40 reporting has increased significantly. Previously, only chargebacks were counted in dispute ratios. Under the new system, fraud claims, including those that never result in a formal chargeback, now factor into a merchant’s risk evaluation.
In short, TC40 data now affects:
- Dispute-to-sales ratios
- Placement on monitoring programs
- Processor and acquiring bank trust
- Merchant category code (MCC) scrutiny
- Potential termination of your merchant account
This means a merchant can appear low-risk based on chargeback volume while quietly accumulating TC40 fraud claims that push them closer to VAMP thresholds without even realizing it.
TC40 Reports Are Invisible to Most Merchants
One of the biggest challenges with TC40 data is access. Merchants typically do not receive these reports unless they are enrolled in Visa’s INFORM program or are working with a processor that shares this data proactively.
Most acquirers do not offer real-time access to TC40 data, and those who do may only share it monthly or quarterly. As a result, many merchants are unaware of their fraud exposure until they are flagged as high-risk, face reserve requirements, or see their processing account terminated.
This lack of visibility can be damaging, especially for merchants in sectors where fraud risk is elevated or transaction volumes are high.
The Problem with Relying on TC40 Data Alone
While TC40 data is valuable for understanding fraud exposure, it is not a proactive fraud prevention tool. By the time a TC40 record is issued, the transaction has already been processed and the customer has claimed it was unauthorized.
Using TC40 data as your primary fraud monitoring source is reactive. It does not prevent chargebacks, it does not stop transactions in real-time, and it often arrives too late to take meaningful action.
Instead, merchants need a multi-layered strategy that includes:
- Real-time fraud screening
- 3D Secure authentication
- Dispute alerts through systems like CDRN or Visa RDR
- Accurate MCC assignment
- Proactive refund policies for high-risk SKUs or buyer profiles
These tools can help reduce the likelihood of TC40 fraud claims being filed in the first place.
Why Corepay Prioritizes TC40 Visibility
At Corepay, we help merchants navigate the complexity of VAMP and chargeback compliance. We work with acquiring banks that understand your industry and provide insights into fraud data, including TC40 case trends when available.
Our gateway, Netvalve, supports real-time dispute tracking and connects to mitigation tools like CB-Alert, RDR, and CDRN. These tools help intercept disputes before they become chargebacks and reduce the volume of fraud reports submitted to Visa.
For merchants processing in high-risk categories such as:
- Telehealth and medspas
- GLP-1 and peptide therapy
- Nutraceuticals
- Online supplements
- CBD and adult products
TC40 monitoring and early fraud detection are essential to maintaining good standing with acquiring banks.
The Bottom Line
Visa’s updated VAMP guidelines have made fraud claims more influential than ever. A merchant can be compliant onchargebacks, but still fail compliance if TC40 cases accumulate quietly in the background. These invisible signals now affect your dispute ratio, your acquiring relationships, and your ability to stay approved.
Understanding TC40 data, and building a strategy around fraud deflection, is now a requirement for long-term success in high-risk payments.
Corepay offers the tools and expertise to keep your fraud exposure in check and your merchant account in good standing.
Ready to take a more proactive approach to fraud and chargeback prevention services? Contact us today to learn how we can help you stay ahead of VAMP.
