Visa is set to transform the way fraud and disputes are managed with the introduction of the Visa Acquirer Monitoring Program (VAMP) on 1 April 2025. Visa has stated that VAMP “seeks to ultimately reduce fraud and enumeration across the global payments ecosystem by helping acquirers improve their risk controls”. This innovative framework replaces Visa’s existing fraud and dispute programmes, combining them into a single system designed to enhance compliance, reduce risk, and improve security for merchants and acquirers alike.
What is the Visa Acquirer Monitoring Program (VAMP)?
The Visa Acquirer Monitoring Program (VAMP) is a new global initiative that aims to help acquirers and merchants better manage fraud and chargeback rates. By introducing stricter compliance thresholds and a simplified monitoring system, VAMP provides a more effective way to track and address fraudulent and disputed transactions.
Key features of VAMP
- Unified Monitoring: Combines multiple fraud and dispute programmes into one streamlined framework.
- VAMP Ratio: A new metric that measures fraud and disputes as a percentage of total settled Visa transactions.
- Stricter Compliance Thresholds: Sets clear benchmarks for acquirers and merchants to maintain acceptable fraud and dispute levels.
- Enforcement Measures: Includes fines, increased monitoring, and potential restrictions for non-compliance.
How is the VAMP ratio calculated?
The VAMP ratio is calculated using the following formula:
(Count of frauds + Count of non-fraud disputes) ÷ Count of total settled Visa transactions
This ratio applies only to merchants who exceed 1,000 fraud cases and non-fraud disputes per month. It provides a comprehensive view of performance, helping Visa identify areas of concern.
Compliance Thresholds
The programme will be introduced in two phases:
- Phase 1 (from 1 April 2025): Merchants must maintain a VAMP ratio below 1.5%, while acquirers must stay below 0.5%.
- Phase 2 (from 1 January 2026): Thresholds will tighten to 0.9% for merchants and 0.3% for acquirers.
What happens if you exceed the threshold?
Merchants exceeding the thresholds may face serious consequences, including:
- Fines imposed on their acquirer, which may be passed on to the merchant.
- Increased monitoring requirements, potentially including mandatory fraud prevention measures.
- Restrictions or termination of the ability to process Visa transactions if compliance is not achieved.
VAMP-related fees
Visa imposes fines based on the severity of non-compliance:
Acquirer ratio > 0.30% = $5 per dispute for merchants above 0.30%
Acquirer ratio > 0.50% = $10 per dispute for affected merchants
Merchant ratio > 1.5% = $10 per dispute for that merchant
These fines are charged to acquirers, who often pass them on to merchants exceeding the thresholds.
How can you manage your VAMP ratio?
To avoid penalties and maintain compliance with VAMP, merchants can take proactive steps such as:
- Using Verifi Rapid Dispute Resolution (RDR): With a few exceptions, this tool helps resolve disputes automatically before they escalate into chargebacks, keeping your VAMP ratio low.
- Analysing Dispute Reports: Regularly reviewing reports can help identify common chargeback reasons and address them proactively.
- Improving Customer Service: Clear refund policies, better communication, and enhanced customer support can significantly reduce disputes.
What types of disputes count towards the VAMP ratio?
Non-fraud disputes with reason codes 11, 12, and 13 are included in the calculation of the VAMP ratio. However, disputes resolved through Verifi RDR are excluded—making RDR an essential tool for maintaining compliance.
Grace period for adjustments
To help merchants and acquirers adapt to these changes, Visa has introduced a three-month grace period starting on 1 April 2025. During this time, fines will not be enforced, giving businesses time to implement necessary adjustments.
Does VAMP apply to all transactions?
Yes, VAMP applies to all Visa-processed transactions globally—covering domestic and international sales across all merchant categories.
What about Mastercard?
Currently, Mastercard has not announced any changes similar to VAMP. It continues to monitor fraud and disputes through its existing Excessive Chargeback Programme (ECP) and Excessive Fraud Merchant (EFM) programme. Merchants should continue monitoring their performance across all card networks.
How will you know if you are approaching the threshold?
Acquirers will work closely with merchants to provide insights into fraud and dispute trends. If your ratio is approaching the limit, you will be notified so you can take corrective action.
Why is VAMP important?
With global fraud losses exceeding £30 billion annually, VAMP represents a critical step towards creating a safer payments ecosystem. By consolidating monitoring processes and introducing stricter controls, Visa aims to significantly reduce fraud while improving transparency for all parties involved.
For further information or support regarding VAMP implementation—or to learn more about enabling Verifi Rapid Dispute Resolution— speak to the Acquired.com team.
