Visa’s bombshell announcement will forever change how European merchants manage their fraud and dispute ratios.

The new Visa Acquirer Monitoring Program (VAMP) counts TC40 fraud alerts resolved through Rapid Dispute Resolution (RDR) toward your VAMP ratio.

High-risk merchants and subscription businesses are warned.

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What’s Changing with VAMP?

Visa initially created VAMP to consolidate and simplify its monitoring programs. Instead of dealing with separate programs for fraud (VFMP) and disputes (VDMP), businesses face a single framework with a unified ratio.

But the latest update brings a twist.

Previously, Visa stated that TC40 fraud alerts resolved through prevention tools like RDR would be excluded from VAMP calculations. Now, they’ve reversed course. All TC40 fraud alerts resolved with RDR will count toward your VAMP ratio.

This means alerts that were once safely excluded now directly impact your risk statistics.

The good news? Non-fraud disputes (TC15) resolved through RDR will still be excluded from calculations.

Why This Matters for European Merchants

In Europe, where 3D Secure (3DS) is widely implemented, fraud-related chargebacks are relatively rare. The Strong Customer Authentication (SCA) requirement under PSD2 made 3DS a standard feature of online payments, with 92% of UK merchants now supporting it.

However, two groups of European merchants should pay close attention:

Subscription Businesses: Even with 3DS, recurring transactions after the initial authentication can still generate fraud claims.

Merchants Still Using 2DS: If you haven’t upgraded to the latest authentication protocols, you remain vulnerable to fraud chargebacks that will now count toward your VAMP ratio.

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The Timing Gives a Grace Period to Prepare

Recognizing the significance of these changes, Visa extended the advisory period for VAMP until October 1, 2025. During this six-month window, merchants who exceed thresholds will receive warnings but won’t face penalties. This gives you time to adjust your fraud prevention and dispute management strategies.

What Happens When VAMP Fully Launches?

Once the advisory period ends, the consequences become serious. Merchants classified as “Excessive” will face fees of $10 per disputed or fraudulent transaction. While payment processing acquirers technically receive these fees from Visa, they’ll almost certainly pass those costs to merchants. They may even impose additional penalties or tighter thresholds.

With Visa’s acquirer threshold dropping to 0.3% in 2026, many acquirers will enforce stricter requirements to ensure their overall portfolio remains compliant. Merchants exceeding limits could face:

• Additional fees and fines
• Account reserve requirements
• Potential account termination in severe cases

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A Preview of Coming Challenges for US Businesses

While these changes begin in Europe, US merchants should watch closely. Unlike Europe, the US lacks uniform federal regulations for payment authentication, and 3DS isn’t mandatory.

When VAMP eventually rolls out globally, US merchants may face even greater challenges managing their fraud ratios without the protective shield of mandatory 3DS.

Action Steps: Protecting Your Business Now

1. Monitor your data vigilantly. Make sure you can track your VAMP ratio properly, especially if you’re using 3DS.
2. Strengthen your fraud prevention stack. Implement robust anti-fraud solutions, consider 3D Secure where applicable, and employ velocity checks and device fingerprinting.
3. Partner with dispute management experts. Consider working with specialists who can help represent your chargebacks and track fraud and chargeback ratios across different card schemes.
4. Communicate with your acquirer. Understand how they’re implementing VAMP and how it affects your specific business model.
5. Stay informed about further changes. Visa continues to evaluate and potentially adjust VAMP rules during this advisory period.

The consolidation of Visa’s monitoring programs changes how you manage fraud and disputes.

By preparing now, you can navigate these changes successfully and avoid costly penalties when enforcement begins. Remember, with the right strategy, you can maintain healthy ratios while continuing to grow your business.

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