If you process Visa payments, you need to know about VAMP thresholds. The difference between 50 basis points and 70 basis points can mean thousands in assessment fees or even losing your ability to process payments.
What Are VAMP Thresholds?
VAMP (Visa Acquirer Monitoring Program) tracks how many of your transactions result in fraud reports (TC40) or disputes (TC15). Visa calculates this as a ratio using basis points. One basis point equals 0.01% of your transaction volume.
The program has two critical thresholds. At 50 basis points, you enter "Above Standard" status. At 70 basis points, you hit enforcement territory where financial penalties kick in.
Think of it like a speed limit warning system. The 50bps mark is your yellow light. The 70bps threshold is the red light where you get a ticket.
The 50bps Early Warning Threshold
When your VAMP ratio hits 50bps, Visa flags your account as "Above Standard." You won't face immediate fines, but your acquirer gets notified. Most acquirers contact you within days to discuss your Visa dispute monitoring status.
This threshold gives you time to fix problems before penalties start. You typically have one to three months to bring your ratio back below 50bps.
Regional Differences at 50bps
US merchants often get more flexibility at this level. Many US acquirers won't take action until you stay above 50bps for two consecutive months. European merchants face stricter oversight. EU acquirers frequently require immediate action plans when you cross 50bps.
Asian Pacific merchants see the most variation. Some regions mirror US standards while others follow EU practices. Your specific country and acquirer relationship determines the response.
The 70bps Enforcement Threshold
At 70 basis points, everything changes. Visa automatically places you in their enforcement program. Monthly assessment fees start immediately, ranging from $25,000 to $75,000.
Your acquirer must submit monthly reports to Visa about your remediation efforts. Some acquirers terminate merchant accounts that stay above 70bps for three months.
How Regional Rules Affect Enforcement
US merchants in enforcement face standard Visa fees but often get 4-6 month remediation periods. European merchants deal with additional PSD2 requirements that mean faster action on high-risk accounts. EU acquirers might implement rolling reserves immediately upon enforcement.
In Latin America and Asia, enforcement varies by market maturity. Established markets like Japan follow US-style enforcement. Emerging markets might see faster account terminations.
Understanding TC40 TC15 Compliance
Your VAMP ratio calculator results depend on two key metrics that determine TC40 TC15 compliance levels.
TC40 reports capture confirmed fraud on your account. Every unauthorized transaction the bank confirms generates a TC40. International transactions see fraud rates three times higher than domestic ones.
TC15 reports cover all chargebacks and disputes. Product issues, shipping problems, and processing errors all create TC15s. These make up the majority of most merchants' VAMP calculations. Service businesses and subscription models see the highest TC15 rates.
Timeline Pressure: October 1 Deadline
Visa's October 1 enforcement date approaches fast. If you're currently above 50bps, you have limited time to implement fixes. Missing this deadline means automatic progression to the next violation level.
Merchants above 70bps face immediate fee increases on October 1. Level 2 violations double your monthly assessments. Level 3 can reach $75,000 monthly plus potential termination.
Your VAMP ratio calculator results from September determine October's status. August and September transactions directly impact your October 1 standing with Visa dispute monitoring systems.
Regional Variations in VAMP Rules
United States Market
US merchants benefit from standardized VAMP applications. The 50bps and 70bps thresholds apply uniformly. PIN debit transactions count differently in calculations, often helping lower overall ratios.
European Union Differences
EU merchants navigate VAMP alongside Strong Customer Authentication requirements. This dual compliance complicates TC40 TC15 compliance efforts. Cross-border EU transactions receive special treatment, counting as domestic for threshold purposes.
Asia Pacific Considerations
APAC markets show the widest variation. Singapore and Hong Kong follow strict 50bps early intervention. Southeast Asian markets might not enforce until 75-80bps. Lower Visa volume in these markets makes ratios more volatile.
Making Sense of Your VAMP Data
Without knowing your exact VAMP ratio, you can't plan proper remediation. The VAMP ratio calculator combines your TC40 fraud reports with TC15 disputes into one number that determines your fate with Visa.
Most merchants don't realize they're approaching thresholds until it's too late. By the time your acquirer notifies you about Visa dispute monitoring concerns, you might already face enforcement. Real-time monitoring is extremely important for maintaining TC40 TC15 compliance.
Conclusion
VAMP thresholds directly impact your payment processing ability. The gap between 50bps and 70bps represents your last chance to avoid enforcement fees. Stay below 50 basis points or face increasing consequences.
October 1 marks Visa's next enforcement review. Your August and September performance determines whether you face higher fees or potential termination. Understanding your exact VAMP ratio becomes critical for planning your response.
FAQ: VAMP Thresholds Explained
What does bps mean in VAMP thresholds?
The term "bps" stands for basis points, with one basis point equaling 0.01% of your transaction volume. When Visa calculates your ratio at 50bps, disputes and fraud represent 0.50% of your total transactions.
How quickly can VAMP ratios change?
VAMP ratios can shift dramatically between months, especially for smaller merchants. A single high-value dispute can push you from safe territory into 70bps enforcement within one billing cycle.
Do VAMP thresholds apply to all card brands?
VAMP thresholds specifically apply to Visa transactions through their Acquirer Monitoring Program. Mastercard runs MATCH with different thresholds, while Amex and Discover have their own systems.
Can seasonal businesses get adjustments?
Visa doesn't offer seasonal adjustments to the standard thresholds. Holiday merchants must maintain compliance year-round, though some acquirers consider seasonality for reserve requirements.
What's the difference between VAMP and VDMP?
VAMP monitors acquirers while VDMP tracks individual merchants directly. Both use similar 50bps and 70bps thresholds, but VDMP includes additional merchant-level consequences.
Your VAMP Ratio Is Already Calculated
Don't know your VAMP ratio? We have it. Book time for free access.
Chargeblast monitors your TC40 and TC15 data in real-time, giving you the exact basis points before Visa calculates them. Our platform shows whether you're approaching the 50bps warning or 70bps enforcement line. Schedule a quick call to see your current ratio and get a personalized action plan if you're above threshold.
