Visa just tightened the screws on merchant monitoring, and your business might already be in the danger zone. The Visa Acquirer Monitoring Program (VAMP) now tracks every fraud report and chargeback you receive, combining TC40 and TC15 data into one compliance metric that could cost you thousands in fines if you cross the threshold.
Understanding TC40 Fraud Reports
TC40 reports track every fraudulent transaction on Visa cards. When a cardholder reports unauthorized charges, their bank files a TC40 with Visa, whether or not the transaction becomes a chargeback. These reports go straight into your VAMP calculation.
Banks generate TC40 reports automatically when cardholders claim fraud. You might not even know about these reports until they show up in your monthly statements. Each TC40 counts against your fraud ratio, even if you successfully defend against the resulting chargeback.
The tricky part about TC40 compliance? These reports include both actual fraud and friendly fraud cases. A customer who forgets about their subscription or doesn't recognize your billing descriptor triggers the same TC40 report as someone whose card was stolen. Both count equally in your VAMP ratio.
TC15 Dispute Records Explained
TC15 records document every chargeback filed through Visa's network. Unlike TC40 reports that focus on fraud, TC15 captures all dispute types including product issues, authorization problems, and processing errors. Every TC15 directly impacts your VAMP standing.
Your TC15 compliance depends on keeping chargebacks below specific thresholds. Visa counts these disputes monthly, comparing them against your total transaction volume to calculate your dispute ratio. High TC15 counts trigger monitoring programs and potential fines.
The relationship between TC40 and TC15 creates a double-hit scenario. A single fraudulent transaction often generates both a TC40 fraud report and a TC15 chargeback record. This means one bad transaction counts twice in your VAMP calculations.
How VAMP Combines TC40 and TC15 Data
VAMP uses both TC40 and TC15 records to assess merchant risk. The program calculates your combined fraud and dispute rate in basis points (bps). Hit 50 bps and you're classified as "Above Standard" with immediate compliance requirements kicking in.
Think of VAMP as a credit score for payment processing. Your TC40 reports show fraud risk while TC15 records reveal operational issues. Together, they paint a complete picture of your business's payment health. Visa uses this data to decide whether you need closer monitoring or intervention.
The 50 basis point threshold sounds small, but it adds up fast. Just 50 fraudulent or disputed transactions per 10,000 sales puts you over the limit. For high-volume merchants processing thousands of transactions daily, staying under this threshold requires constant vigilance and proactive dispute management.
The Consequences of Non-Compliance
Cross the 50 bps threshold and Visa moves you into their "Above Standard" category. This classification brings monthly fines starting at $25,000, mandatory remediation plans, and potential processing restrictions. Some merchants face fines exceeding $100,000 monthly until they bring their ratios back down.
The financial impact goes beyond fines. Banks charge higher processing fees to merchants in monitoring programs. Payment processors might require reserves or rolling reserves that tie up your working capital. Some processors simply terminate merchants who can't maintain TC40 TC15 compliance.
October 1st marks Visa's enforcement deadline for updated VAMP rules. Merchants already over the threshold need immediate action plans. Those approaching 50 bps should implement prevention strategies now before crossing into non-compliance territory.
Prevention Strategies That Work
Real-time alerts let you resolve disputes before they become chargebacks. Chargeblast integrates Verifi RDR and Ethoca into one platform, automatically refunding qualifying disputes to prevent TC15 records entirely. Our dispute intelligence identifies high-risk customers before they file claims, while payment ID tracking makes verification instant. You get daily VAMP ratio updates showing your exact basis points, not monthly surprises.
Additionally, customer service prevents a lot of potential disputes from happening. Answer phones quickly, respond to emails promptly, and resolve complaints before customers contact their banks. Every prevented dispute keeps your TC40 and TC15 counts lower.
Track TC40 and TC15 patterns by product, payment method, and customer segment to spot problems weeks before they threaten compliance. These prevention tools cost far less than VAMP fines, and our analytics show exactly what to fix first to stay below the 50 basis point threshold.
Conclusion
VAMP compliance isn't optional anymore. Your TC40 and TC15 records determine whether you face fines, restrictions, or smooth payment processing. The 50 basis point threshold separates compliant merchants from those paying thousands in monthly penalties. Smart merchants track their metrics closely and implement prevention strategies before problems arise. With October's deadline approaching, understanding your current VAMP position becomes critical for avoiding sudden compliance violations and protecting your payment processing capabilities.
Frequently Asked Questions
What's the difference between TC40 and TC15?
TC40 reports track fraud claims while TC15 records document all chargebacks including fraud, authorization issues, and customer disputes. TC40 reports don't always become chargebacks, but TC15 records represent actual disputed transactions that impact your merchant account.
How often does Visa calculate VAMP ratios?
Visa calculates VAMP ratios monthly using your previous month's transaction data. Your TC40 and TC15 counts from each month determine your compliance status for the following month's monitoring period.
Can I dispute TC40 reports?
You cannot directly dispute TC40 fraud reports since banks file them based on cardholder claims. However, you can provide evidence to the card network showing the transaction was legitimate, which might prevent it from becoming a TC15 chargeback.
What happens if I exceed 50 basis points?
Exceeding 50 basis points triggers Visa's "Above Standard" classification with monthly fines starting at $25,000. You'll need to submit a remediation plan and might face processing restrictions or reserve requirements from your payment processor.
Do refunds remove TC40 or TC15 records?
Refunds don't remove existing TC40 or TC15 records from your VAMP calculations. However, proactive refunds through alert services can prevent disputes from becoming TC15 chargebacks in the first place.
Your VAMP Ratio Could Already Be Critical
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October 1st brings strict enforcement of Visa's monitoring thresholds, and merchants over 50 basis points face immediate penalties. Chargeblast tracks your TC40 and TC15 data in real-time, showing exactly where you stand before Visa's compliance hammer drops. Our prevention tools automatically stop disputes before they count against your ratio, keeping you safely below monitoring thresholds while you focus on growing your business.
