Starting April 1, 2025, Visa is set to implement major updates to its monitoring programs, consolidating all of them into one single enhanced program. This revamped Visa Acquirer Monitoring Program (VAMP) will introduce new risk metrics and thresholds rolled out in two phases.
These updates are designed to streamline oversight but also bring stricter requirements for merchants managing fraud and disputes. With these changes, businesses will need to adopt more strategic methods to maintain compliance and protect their payment processing capabilities. Let’s explore what this means for merchants and how to stay prepared.
A Quick Rundown on the Visa Acquirer Monitoring Program
To understand the upcoming changes with VAMP, let’s look at the current monitoring programs: VDMP (Visa Dispute Monitoring Program), VFMP (Visa Fraud Monitoring Program), and the existing VAMP. These programs track merchant performance based on fraud and dispute metrics, and exceeding thresholds can lead to penalties.
Here’s how these programs currently work:
Under the current system, disputes and fraud are monitored separately through VDMP and VFMP. Each program has its own thresholds, and going over them can result in penalties, higher processing fees, or even losing access to payment processing. For example:
- VDMP: If you receive 100 chargebacks in a month and your chargeback ratio is 1%, you could be placed under the Standard level.
- VFMP: If your fraud volume hits $75,000 in a month and represents 0.9% of your sales, you’re flagged for closer monitoring.
These programs help Visa monitor risks and enforce compliance. However, the upcoming VAMP changes will combine these metrics into a single system, making it even more important to stay within acceptable limits for both fraud and disputes.
What’s Going to Happen?
Big changes are coming with Visa’s revamped monitoring program. Here’s what you need to know before it gets carried out:
Merging programs into one
Visa is retiring the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP) and replacing them with a single program—the Visa Acquirer Monitoring Program (VAMP). This consolidation means disputes and fraud will now be monitored together under one system.
For example, if your dispute ratio is 0.75% and your fraud ratio is also 0.75%, these will combine into a VAMP ratio of 1.5%. That combined ratio will determine compliance, so even if each number was acceptable separately, together, they might not be.
New accountability standards
VAMP shifts accountability to both merchants and acquirers. Acquirers will be required to monitor their entire merchant portfolio, much like merchants have been monitoring their own accounts. For merchants, the thresholds are becoming tighter since fraud and disputes are combined. Acquirers might enforce even stricter thresholds to stay compliant themselves.
What counts and what doesn’t
One bit of good news is that disputes resolved through Visa’s tools like CDRN, RDR, and Order Insight won’t count toward your VAMP ratio. This means using Visa’s resolution systems can help you avoid penalties. While these tools aren’t mandatory yet, their benefits make them hard to ignore.
New metrics for fraud prevention
Visa is also rolling out enhanced security measures, like the Visa Account Attack Intelligence Score system, to tackle fraud, such as brute force attacks that try to guess valid card details. These updates come with new thresholds for what counts as an attack, providing better fraud coverage.
Enumeration ratio changes
Fraud ratios will now be calculated under a unified program. This change comes with an update on how enumeration ratios are calculated.
Previously, fraud ratios and penalties for non-compliance were tracked separately through VAMP and VFMP. Now, these will be combined, streamlining the process of monitoring fraud and ensuring merchants stay within compliance thresholds.
These changes start rolling out on April 1, 2025, with further updates expected in 2026.
The Fee Structure on the Updated VAMP
The updated Visa Acquirer Monitoring Program (VAMP) introduces stricter rules for calculating and enforcing fees. Here’s how the fee structure works and what you need to know to avoid penalties:
Grace period for first-time identification
If you’re flagged for the first time within a 12-month rolling period, you’ll get a three-month grace period. This gives merchants and acquirers time to address the issues causing high dispute or fraud ratios before fees start to kick in.
Enforcement fees
Fees are applied per dispute once the thresholds are exceeded. These thresholds include both fraud and non-fraud disputes, meaning any chargeback beyond the limit can result in added costs. For example, if an acquirer’s portfolio or an individual merchant’s transactions go above the dispute threshold, enforcement fees will apply.
What counts toward thresholds?
Thresholds are calculated based on specific criteria:
- Non-Fraud Dispute Codes: Includes conditions like processing errors (Code 11), authorization issues (Code 12), and disputes over goods or services (Code 13).
- Transaction Types: Only card-absent transactions, including domestic and cross-border VisaNet activity, are counted. This means in-store card-present transactions aren’t included.
- Volume Requirement: To trigger enforcement, the acquirer or merchant must have at least 1,000 combined fraud and non-fraud disputes in a month.
Excluded disputes
Some types of disputes are excluded from the VAMP thresholds, which can help merchants manage their ratios. For example, disputes resolved through Rapid Dispute Resolution (RDR), the Cardholder Dispute Resolution Network (CDRN), or Compelling Evidence 3.0 (CE3.0) aren’t factored into the calculations. This makes tools like RDR and CE3.0 valuable for keeping your dispute ratios manageable.
How are Merchants Going to Be Affected?
The updated Visa Acquirer Monitoring Program (VAMP) will not only affect processors like Stripe but will also have a ripple effect on merchants. Stripe, for instance, will need to enforce stricter fraud and dispute monitoring to stay within Visa’s thresholds.
If these limits are exceeded, Stripe could face enforcement fees, leading to tighter restrictions and increased scrutiny of merchant accounts. This heightened oversight will directly impact merchants, potentially resulting in stricter onboarding processes, more frequent account reviews, and higher fees. While pre-VAMP merchants can process with dispute rates up to .7 to 1%, post-VAMP merchants will likely need dispute rates under .5% to keep their processors happy.
Tighter fraud and dispute rules
With the new program, both fraud and disputes will be tracked together, which means your ratios will be scrutinized more closely. For example, if you’re dealing with a high number of disputes and some fraud incidents, those will count against each other. You’ll need to keep a better balance between managing disputes and preventing fraud to stay within the set thresholds.
Stricter deadlines
Visa’s new system comes with tighter timelines for handling disputes and fraud. You’ll have less time to resolve issues before they count against your ratios. Missing deadlines for responding to disputes or fraud cases can result in penalties, so it’s important to act quickly when these situations arise.
Higher priority on chargebacks
Chargebacks will be given more attention under the new system. If you don’t manage chargebacks properly, they can add up quickly, pushing you past the limits. With the tighter thresholds, you’ll need to focus more on preventing chargebacks and resolving disputes efficiently to avoid penalties.
How Should Merchants Prepare for the Visa Acquirer Monitoring Program?
Visa’s updated monitoring program brings stricter rules, making preparation crucial for merchants. Taking proactive steps can help you avoid penalties and keep your payment processing smooth. Here’s what you can do:
Implement fraud prevention measures
Start by reviewing your current fraud rates and comparing them to the new VAMP thresholds. Are you close to the limits? If so, it’s time to strengthen your fraud prevention strategies. Tools like 3D Secure can help verify transactions, while fraud detection systems can block suspicious activity. Keep in mind, though, that tightening fraud controls too much might block legitimate transactions, so find a balance that supports your business goals.
Streamline dispute resolution processes
Having a fast and efficient way to handle disputes is more important than ever. Make sure you’re using tools like Visa’s Order Insight or Rapid Dispute Resolution to resolve disputes before they escalate into chargebacks. Also, work with your processor to ensure they provide clear and timely data about chargebacks so you can address issues quickly.
Ensure clear and transparent policies
Transparent policies help prevent disputes before they start. Ensure your customers understand your refund, return, and billing policies. For example, if you offer a subscription service, make sure customers know when they’ll be billed and how to cancel. Clear communication can reduce the chances of customers disputing charges.
Maintain accurate data
Accurate data is crucial for tracking your fraud and chargeback metrics. Regularly audit your systems to make sure that all transactions, disputes, and fraud cases are logged correctly. Miscounted data could make it harder to stay under the thresholds, leading to unnecessary penalties.
Work closely with processors
Your processor plays a big role in helping you comply with the new VAMP rules. Ask them if they’re making any changes to adapt to Visa’s updates. For example, will they adjust their thresholds or introduce new fraud prevention tools? If their plans don’t align with your needs, it might be time to explore other processors that can better support your compliance efforts.
