In December 2024, I shared an update on the upcoming rollout of Visa’s Acquirer Monitoring Program, also known as VAMP. The final version went into effect in June, and enforcement will begin in October. With just a month to go, now is the time to review what’s changing and how to stay compliant.
What Is VAMP?
If you’re not already tracking your VAMP ratio, now is the time to start. Reach out to your payment provider and ask if they can provide this data.
VAMP replaces two long-standing acquirer programs focused on merchant disputes and fraud. The first is the Visa Dispute Monitoring Program (VDMP), which most of us know well. VDMP focused on chargeback ratios, requiring merchants to stay below a 0.9% chargeback rate and under 100 chargebacks each month in total. The second was the Visa Fraud Monitoring Program (VFMP), which targeted merchants with high fraud levels. VFMP enforced a 0.9% fraud ratio and capped the total fraudulent transaction value at $75,000 per month.
VAMP shifts the focus away from individual merchants and onto acquirers at the bank level. Under the new rules, acquirers must maintain a VAMP ratio of 0.5% or less. Initially, Visa announced that acquirers would need to hit the 0.5% threshold by April 2025 and then further reduce it to 0.3% by January 2026. However, after receiving significant pushback, especially from large acquirers, Visa revised the ratios and timeline, delaying enforcement.
How the VAMP Ratio Is Calculated
Visa will add together issuer-identified fraud (TC40s) and non-fraud disputes (TC15s), then subtract any disputes resolved through Rapid Dispute Resolution (RDR), Cardholder Dispute Resolution Network (CDRN) or Compelling Evidence 3.0 (CE3.0). That total is then divided by the acquirer’s total transaction volume.
For context: RDR is Visa’s system for resolving consumer disputes in real time at the network level, without initiating a chargeback. CDRN is a service from Visa company Verifi that allows merchants to manually refund disputes before they escalate into chargebacks. CE3.0 allows merchants to submit detailed transactional data in an effort to resolve disputes with compelling evidence.
Lesser-Known Changes to Look Out For
Several new aspects of the VAMP program were only clarified in the latest update. One notable change is that under VDMP, chargebacks were capped at 10 per account, but that restriction no longer applies; there is no longer a cap on the number of TC40s that can be associated with a single card number.
Additionally, consumers can now dispute transaction as fraud even if they are older than six months. This is a significant change from previous chargeback rules, which typically limited disputes to a six-month window. Now there is no time limit.
Also important to note: a single transaction can generate both a TC40 and a TC15, and both will be counted unless they are resolved through RDR, CDRN or CE3.0.
Why This Matters to Adult Merchants
The pressure is on — especially in the U.S., where there are only a handful of acquirers willing to onboard adult merchants. These acquirers typically don’t have the benefit of offsetting high-risk merchants with a large number of low-risk accounts, which means they’ll be scrutinizing their portfolios more closely to make sure they meet the new VAMP ratio requirements.
European acquirers that focus on adult often have more diversified portfolios, giving them a bit more breathing room when it comes to VAMP compliance. That said, just because this is an acquirer-focused program doesn’t mean merchants can ignore it. We’ve already received feedback from banking partners regarding merchants with high VAMP ratios. Some of these merchant accounts have been terminated, while others have been asked to provide detailed plans on how they intend to reduce their ratio to the required 0.5% or lower.
What You Should Be Doing Right Now
If you’re not already tracking your VAMP ratio, now is the time to start. Reach out to your payment provider and ask if they can provide this data. You should try to calculate your current VAMP rate even if the data is incomplete. Many acquirers are struggling to get consistent reporting, so it’s important to get a general idea of where you stand, especially in case your provider reaches out. If you’re above the 0.5% threshold, make sure you’re enrolled in both RDR and CDRN. These tools are now widely available through most payment service providers and gateways.
Finally, pair those services with strong customer support, clear consumer disclosures and a solid receipt process. These practices not only help reduce disputes, but also show your acquirer that you’re serious about compliance.
Don’t wait until October to act. Even though VAMP targets acquirers, the downstream effects are already here — and adult merchants are in the spotlight. Be proactive and stay informed, as Visa may make further changes to the program. Take steps now to protect your business before enforcement takes effect.
Cathy Beardsley is president and CEO of Segpay, a merchant services provider offering a wide range of custom financial solutions including payment facilitator, direct merchant accounts and secure gateway services. Under her direction, Segpay has become one of four companies approved by Visa to operate as a high-risk internet payment services provider. For questions or help, contact sales@segpay.com or compliance@segpay.com.
