October 1, 2025 marks the start of VAMP enforcement, and if you process Visa transactions, the clock is ticking. While the new Visa Acquirer Monitoring Program launched April 1, the real consequences begin when enforcement kicks in this October.
VAMP combines your fraud (TC40) and dispute (TC15) counts - if you're over 50bps, you're "Above Standard" and need action before Oct 1. Running your VAMP ratio calculator today could save you from steep penalties and processing restrictions tomorrow.
The October 1 Enforcement Deadline
VAMP already launched on April 1, 2025, consolidating Visa's previous VDMP and VFMP programs into one comprehensive system. But Visa gave merchants a six-month advisory period to adjust. That grace period ends September 30, with full enforcement starting October 1 for merchants hitting the Excessive threshold.
The consolidation brings a major change to how Visa dispute monitoring works. The new VAMP ratio counts both TC40 fraud reports and all TC15 disputes together, essentially double-counting fraud-related chargebacks. This means your ratio will likely be higher under VAMP than it was under the old programs.
Critical VAMP Thresholds for October
As of June 1, 2025, following Visa's May updates, these thresholds determine your VAMP status:
Excessive Threshold for Merchants Starting October 1, 2025: 220 basis points (2.2%) with at least 1,500 combined disputes monthly Starting April 1, 2026: 90 basis points (0.9%) with 1,500+ disputes
Acquirer Thresholds Excessive: 70 basis points (0.7%) starting October 1, 2025 Above Standard: 50 basis points (0.5%) starting January 1, 2026
Your VAMP ratio calculator needs to account for the new formula: (TC40 fraud reports + all TC15 disputes) divided by total card-not-present transactions. If a transaction appears in both TC40 and TC15, it gets counted twice.
How the New VAMP Ratio Changes Everything
The updated calculation method fundamentally changes dispute math. Under the old VDMP, a merchant with 70 fraud cases and 80 regular disputes out of 10,000 transactions would have a 0.8% dispute ratio. Under VAMP, that same merchant faces a 1.5% ratio because fraud cases count in both TC40 and TC15.
This double-counting particularly impacts merchants with high fraud rates. E-commerce businesses, digital goods sellers, and subscription services need to recalculate their risk immediately. Many merchants discover they're already above the April 2026 threshold of 90 basis points.
Regional Variations and TC40 TC15 Compliance
Different regions face varying implementation schedules:
North America and Europe Full TC40 TC15 compliance requirements apply immediately. The 220 basis point threshold for October enforcement gives some breathing room, but the April 2026 drop to 90 basis points requires aggressive dispute prevention now.
Latin America LAC regions get a slightly lower threshold at 150 basis points for October enforcement, dropping to 60 basis points in April 2026. However, TC40 TC15 compliance standards remain equally strict.
Enumeration Monitoring All regions must also track enumeration attacks. If you hit 300,000+ enumerated transactions with a 20% enumeration ratio, you face additional VAMP enrollment regardless of dispute levels.
What VAMP Enforcement Means for Your Business
Starting October 1, exceeding VAMP thresholds triggers immediate consequences:
First 3 Months: Grace period for first-time violations (if you haven't been identified in the past 12 months)
Month 4 Onward: $8 per dispute above threshold for merchants at Excessive level
Ongoing Requirements: Monthly remediation plans and regular reviews with your acquirer
The financial impact compounds quickly. A merchant with 2,000 disputes at the Excessive threshold pays $4,000 monthly in VAMP fees alone, plus any acquirer-imposed penalties.
Prevention Tools That Actually Reduce Your VAMP Ratio
Good news: Visa dispute monitoring now excludes disputes resolved through prevention tools. Transactions resolved via Verifi RDR, Ethoca alerts, or Compelling Evidence 3.0 don't count toward your VAMP ratio. This creates a powerful incentive to implement prevention rather than fight chargebacks after they happen.
Your VAMP ratio calculator should track:
- Total card-not-present transactions
- TC40 fraud reports filed
- TC15 disputes (both fraud and non-fraud)
- Prevention alerts resolved
- RDR deflections
Merchants using comprehensive prevention see 40-60% reductions in their VAMP ratios simply by stopping disputes before they become formal chargebacks.
Timeline for VAMP Implementation
April 1, 2025: VAMP program launched (advisory period began)
June 1, 2025: Updated thresholds took effect after May revision
September 30, 2025: Advisory period ends
October 1, 2025: Enforcement begins for Excessive threshold
January 1, 2026: Above Standard enforcement begins for acquirers
April 1, 2026: Stricter merchant thresholds take effect (90 basis points)
The April 2026 threshold drop from 220 to 90 basis points represents a massive tightening. Merchants need prevention strategies in place before October to avoid scrambling when standards get even stricter.
Calculating Your Risk Today
Here’s the basic VAMP formula:
Sounds simple? Here's what most merchants don't know: the dispute numbers in your processor dashboard aren't showing you everything. Your real VAMP ratio includes TC40 fraud reports you've never seen, disputes buried in bank systems, and double-counted transactions that inflate your risk without your knowledge.
We've seen merchants confident they were at 30 basis points discover they're actually at 75. Others paying thousands in monthly penalties while simple prevention tools could have kept them safe. The difference between thinking you're compliant and knowing you're protected? Having someone who can see the complete TC40 TC15 compliance picture that Visa sees. October 1 is coming whether you know your real number or not.
Your VAMP ratio is already calculated, and we’re looking at it right now. Schedule a call with us to see where you stand.
Industry-Specific VAMP Impacts
Digital Goods and Gaming These merchants typically see 1.5-2% dispute rates, already above October thresholds. Implementing strong authentication and clear billing descriptors becomes essential.
Subscription Services Recurring billing creates unique challenges with "friendly fraud" and forgotten charges. Clear cancellation processes and reminder emails before billing help maintain TC40 TC15 compliance.
Travel and Events Long fulfillment windows increase dispute risk. These merchants need robust customer communication and flexible refund policies to stay below VAMP thresholds.
Action Steps Before October 1
Smart merchants are taking these steps now:
- Run your current VAMP ratio using the new calculation method
- Identify dispute sources through root cause analysis
- Implement prevention tools that exclude disputes from VAMP
- Review billing descriptors to reduce confusion
- Strengthen customer service response times
- Set up real-time monitoring for daily ratio tracking
Waiting until you receive an October enforcement notice means you're already three months behind on fixing the problem.
Conclusion
VAMP enforcement begins October 1, 2025, marking a fundamental shift in Visa dispute monitoring. The new calculation method, which combines TC40 fraud reports with all TC15 disputes, means most merchants will see higher ratios than before. With thresholds dropping even further in April 2026, the time for action is now. Use a reliable VAMP ratio calculator to understand your current position, implement prevention tools that keep disputes out of the VAMP calculation, and maintain strong TC40 TC15 compliance processes. The merchants who thrive under VAMP will be those who invested in prevention before enforcement began, not those scrambling to respond after receiving their first penalty notice.
Frequently Asked Questions
How is the VAMP ratio different from the old VDMP calculation?
The VAMP ratio includes both TC40 fraud reports and all TC15 disputes divided by card-not-present transactions. The old VDMP only counted non-fraud disputes, so VAMP ratios typically run 50-100% higher for merchants with significant fraud volumes.
When does VAMP enforcement actually start?
VAMP launched April 1, 2025, but enforcement begins October 1, 2025 for the Excessive threshold. The Above Standard threshold enforcement starts January 1, 2026 for acquirers only.
What are the current VAMP thresholds after the May 2025 update?
As of June 1, 2025, merchants face the Excessive threshold at 220 basis points with 1,500+ monthly disputes. This drops to 90 basis points on April 1, 2026, making prevention critical now.
Do prevention alerts help with VAMP compliance?
Yes, disputes resolved through Verifi RDR, Ethoca alerts, and Compelling Evidence 3.0 are excluded from VAMP calculations. This makes prevention tools essential for maintaining TC40 TC15 compliance and staying below thresholds.
How much are VAMP penalties?
Starting October 1, 2025, merchants at the Excessive level pay $8 per dispute above threshold. Acquirers face $8 per dispute at Excessive level and $4 at Above Standard level starting January 2026.
Can small merchants avoid VAMP monitoring?
VAMP requires at least 1,500 combined monthly disputes to trigger monitoring. Small merchants with lower transaction volumes rarely hit this threshold, though they should still monitor their ratios carefully as they grow.
Cut Your VAMP Ratio in Half with Automated Prevention
Chargeblast's prevention platform intercepts disputes before they hit your VAMP ratio, with real-time alerts that keep both TC40 and TC15 counts under control. Our merchants typically see 40-60% ratio reductions within the first month.
Don't know your VAMP ratio? We have it. Schedule your free VAMP ratio assessment now to see your projected ratio with Chargeblast protection before October enforcement begins.
