Visa Enhances Acquirer Monitoring Programme (VAMP): What Merchants Need to Know

20 January 2025

Written by Libby James

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

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Visa Enhances Acquirer Monitoring Programme (VAMP)

Visa has announced significant updates to its fraud and dispute management framework under the Visa Acquirer Monitoring Programme (VAMP). Effective 1 April 2025, these changes aim to better protect the payments ecosystem by consolidating existing programmes and introducing new tools and metrics. Here’s what this means for businesses.

What Is Changing?

Visa will integrate the Visa Dispute Monitoring Programme (VDMP) and Visa Fraud Monitoring Programme (VFMP) into a unified system under VAMP. Key updates include:

Stronger Fraud Controls: Addressing up to four times more fraud globally, potentially mitigating over USD 2.5 billion in losses.
New Metrics: Monitoring fraud and disputes using combined transaction count-based measures for a more comprehensive view.
Updated Thresholds: Acquirer and merchant performance will now be assessed based on revised criteria for fraud and dispute activity.
Enhanced Tools: Introduction of OneERS, a case management system designed to simplify fraud and dispute monitoring.

Key Features for Merchants

Consolidated Oversight: By merging VDMP and VFMP, VAMP creates a streamlined monitoring process for card-not-present (CNP) fraud and disputes, which is particularly relevant for online businesses.
New Monitoring Ratios:
- VAMP Ratio: Measures fraud and disputes as a percentage of settled transactions.
- Enumeration Ratio: Tracks CNP authorisation transactions to identify potential enumeration attacks.
Grace Period: Merchants identified as high-risk will have a three-month window to resolve issues before fines are applied.

Potential Impact on Merchants

The updated VAMP introduces stricter criteria for identifying fraud and dispute risks. Businesses with high levels of chargebacks, fraudulent transactions, or enumeration issues may face:

Increased scrutiny: Higher monitoring thresholds for CNP fraud and disputes.
Fines: $5–$10 per fraudulent or disputed transaction, depending on the severity of the issue. Visa’s approach incentivises improvement by offering time to address performance issues before enforcement begins. For merchants, this means staying vigilant about transaction patterns and implementing proactive measures to mitigate risks.

How to Prepare

To stay compliant with the updated VAMP, consider these steps:

Monitor Performance Regularly: Review chargeback and fraud rates to ensure they remain below Visa’s thresholds.
Leverage Fraud Prevention Tools: Use Visa Secure, tokenisation, and machine learning-based solutions to prevent disputes.
Collaborate with Your Acquirer: Ensure your payment provider understands the VAMP requirements and is ready to support compliance.
Educate Your Team: Train staff to follow best practices for accurate transaction processing and fraud prevention.

Timeline to Enforcement

Visa has provided a 90-day advisory period from April to June 2025. During this time:

No fines will be assessed, giving businesses time to adjust.
Enforcement and fines will start from July 2025, with stricter thresholds effective from January 2026.

Why It Matters

Fraud and disputes not only harm businesses financially but also damage customer trust and confidence. Visa’s enhanced VAMP offers merchants an opportunity to improve operational resilience, protect their revenue, and contribute to a more secure and trustworthy payments ecosystem. By staying informed and implementing effective risk management strategies, businesses can better navigate these changes and minimise potential disruptions.

FAQs

What is the Visa Acquirer Monitoring Programme (VAMP)?

VAMP is Visa's updated risk management framework, consolidating the Visa Dispute Monitoring Programme (VDMP) and Visa Fraud Monitoring Programme (VFMP). It aims to enhance fraud prevention, manage disputes, and strengthen the security of the payment ecosystem.

Which countries are affected by the VAMP changes?

The changes apply globally, including regions such as the Asia Pacific (AP), Canada, Central and Eastern Europe, Middle East and Africa (CEMEA), Europe, and the United States.

When will the changes to VAMP take effect?

The updated VAMP programme will come into effect on 1 April 2025. There will be a 90-day advisory period until 30 June 2025, with enforcement starting on 1 July 2025. Stricter thresholds will apply from January 2026.

How does the VAMP update improve fraud prevention?

VAMP introduces new tools and metrics, such as the OneERS case management system and combined transaction count-based metrics. These updates enable more comprehensive monitoring of fraud and disputes, addressing up to four times more fraud than previous programmes.

What are the penalties for non-compliance under VAMP?

Merchants and acquirers exceeding the specified thresholds may face fines ranging from $5 to $10 per fraudulent or disputed transaction, depending on the level of non-compliance.

Are there any regions with specific thresholds or criteria under VAMP?

Yes, thresholds and criteria vary slightly by region. For example, in the CEMEA region, the merchant’s excessive identification level includes a minimum count of 100 transactions and $75,000 in fraud or dispute amounts.

What types of transactions are monitored under VAMP?

VAMP focuses on card-not-present (CNP) transactions, both domestic and cross-border, processed via VisaNet. Specific monitoring applies to fraud (TC 40) and non-fraud disputes (TC 15) under certain dispute conditions.

How can businesses prepare for the VAMP updates?

Businesses should monitor their fraud and dispute ratios, utilise fraud prevention tools like Visa Secure, collaborate with their acquirer for compliance support, and educate their teams on best practices for transaction processing and fraud prevention. Acquirers will also receive training and materials for the new OneERS system before the programme launches.