If you've been flagged for the Visa Dispute Monitoring Program (VDMP), one of the first things you want to know is: how long do I have to stay in it? The answer depends on how quickly you lower your chargeback rates. Visa decides how you're moved through its enforcement phases. This guide breaks down the timeline, what extends enrollment, and what it actually takes to graduate.
What Is VDMP and Why Are You In It?
Visa created the Visa Dispute Monitoring Program (VDMP) to keep merchant chargeback activity under control. It flags merchants who consistently exceed Visa's chargeback thresholds. Once you're enrolled, you're subject to regular monitoring, fees, and enforcement actions.
VDMP is a formal risk program, and getting out requires actual performance improvement, not just promises to do better.
Enrollment Duration Depends on Your Chargeback Ratio
There's no fixed number of months a merchant stays in VDMP. Instead, it's based on how long your chargeback rate remains above the program threshold. That threshold is 0.9% of total Visa transactions per month, with a minimum of 100 chargebacks.
If your chargeback activity stays below that level for 3 consecutive months, you're eligible to exit the program. But if you keep exceeding the limit, you stay enrolled. Penalties increase over time.
The 4 Key Phases of VDMP (And Their Timelines)
Visa moves merchants through specific phases once they enter VDMP:
1. Early Warning
- Not technically enrolled yet.
- You're getting close to the threshold.
- Visa notifies you to make changes before formal entry.
- Duration: Informal, but can last 1 to 2 months depending on your risk level.
2. Standard
- Triggered when you hit or exceed 0.9% and 100 chargebacks.
- Monitoring begins.
- Visa issues monthly reports.
- Duration: Minimum of 4 months if you reduce chargebacks right away. Otherwise continues.
3. Excessive
- Reached if your chargeback ratio climbs above 1.8%.
- Heavier enforcement kicks in.
- Visa begins charging noncompliance assessment fees.
- Duration: Can continue indefinitely until you fall below 0.9% for 3 straight months.
4. Enforcement
- After several months with no improvement, Visa may escalate.
- Fines rise (up to $50,000 or more per month) and acquiring banks face pressure.
- Visa may even recommend account termination or blacklist the merchant.
How Long Does It Take to Get Out?
If you act fast and fix the root causes of your chargebacks, some merchants exit in as little as 4 to 6 months. But most stay in VDMP 6 to 12 months or longer, especially if their numbers keep fluctuating.
To exit, you need:
- A chargeback ratio below 0.9%
- Fewer than 100 chargebacks per month
- A stable pattern that lasts 3 consecutive months
Your acquirer must also formally notify Visa that your business qualifies to exit. There's no automatic graduation.
What Makes Enrollment Last Longer?
Several things can drag out your time in VDMP:
- Fluctuating ratios: If you drop below 0.9% one month but jump back up the next, the clock resets.
- Recurring fraud: If the same chargeback reasons keep coming up (like "fraudulent transaction"), Visa treats this as a risk pattern.
- Lack of prevention tools: No alerts, no 3DS, no response system. You're not showing any effort to fix the issue.
- Inaction by your acquirer: Even if you qualify to exit, your acquirer has to file the paperwork. Delays here can stall your release.
What Happens If You Do Nothing?
If you make no changes, you could stay in the program indefinitely. Visa will continue to escalate fees and enforcement. In extreme cases, they may cut off your ability to process Visa payments entirely.
That's why taking action early, ideally in the Early Warning phase, gives you the best shot at avoiding long-term penalties.
Final Thoughts
VDMP Visa enrollment doesn't last a set amount of time. It's performance-based, and that puts the clock in your hands. Lower your chargebacks and stabilize your account for three straight months, and you can graduate. But if you wait or stall, fees will climb and Visa may escalate.
This isn't something that fades with time. The faster you act, the sooner you're out.
FAQ: VDMP Visa Enrollment Duration
How long does VDMP enrollment last?
There is no fixed length of time. Merchants remain enrolled until they bring chargeback levels below the program threshold for three consecutive months.
Can I be removed automatically once my chargebacks drop?
No. Your acquirer must request removal from Visa on your behalf. If they don't act, you may stay enrolled even after qualifying.
What happens if I reduce chargebacks but spike again later?
Visa resets the exit timeline. You need to stay below the thresholds for three uninterrupted months to graduate.
Are the noncompliance fees permanent?
No, they stop once you exit VDMP. But they increase each month you stay in the Excessive tier, so delaying action can get expensive quickly.
Is VDMP the same as Mastercard's chargeback program?
Not exactly. Mastercard has its own system (the ECM and HSMP programs) with different thresholds and timelines. Many high-risk merchants get flagged in both.
What tools help me exit the program faster?
Fraud prevention tools like 3D Secure, chargeback alerts, and automated representment systems can all help lower your ratio and speed up exit.
Want Out of VDMP? Here's How to Get Back on Track
At Chargeblast, we help merchants exit VDMP by cutting chargebacks at the source. Real-time alerts. Automated responses. Step-by-step fixes. If your ratios are close or you're already stuck in the Excessive tier, we'll help you dig out, clean up your dispute process, and build a defense Visa can see.
You don't have to wait for another penalty to start fixing it. Let's get you out.
