Visa’s new VAMP program is not hot news, but as the deadline approaches it’s making business owners quake.
Payment processors across the industry will enforce Visa’s new Acquirer Monitoring Program (VAMP) starting October 1, 2025. This overhaul consolidates Visa’s existing fraud and dispute monitoring programs into a single, more stringent framework that demands immediate attention from merchants and acquirers alike.
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What Is VAMP and Why Should You Care?
Visa launches VAMP to strengthen payment system integrity by combining the Visa Fraud Monitoring Program (VFMP) and Visa Dispute Monitoring Program (VDMP) into one unified framework.
The program actively monitors card-not-present transactions, tracking both fraudulent activity and legitimate disputes through a single metric called the VAMP ratio.
VAMP affects every merchant processing card-not-present transactions. Whether you operate an e-commerce store, subscription service, or any business accepting online payments, this program directly impacts your ability to process Visa transactions.
How Does VAMP Calculate Risk?
The VAMP Ratio Formula
The VAMP ratio uses a straightforward calculation:
VAMP Ratio = (TC40s + TC15s) ÷ Total Settled CNP Transactions
This ratio measures your monthly fraud and dispute activity against your total transaction volume, expressed as a percentage.
TC40s vs. TC15s
TC40s are fraud reports that Visa identifies as fraudulent transactions. These occur when:
- Cardholders report unauthorized transactions
- Banks flag suspicious activity
- Fraud detection systems identify compromised cards
TC15s encompass all disputes, including both fraud and non-fraud chargebacks. These cover:
- Processing errors and authorization issues
- Customer service disputes
- Product/service quality complaints
- Billing descriptor confusion
Recent Changes Create Double Counting
Visa updated VAMP calculations in May 2025, creating a change that affects most merchants. Previously, the formula only counted non-fraud TC15s, but now all TC15s count toward your ratio.
This means fraud-related disputes get counted twice – once as a TC40 and again as a TC15 if they result in a chargeback. This change increases VAMP ratios for most merchants, making compliance more challenging.
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What Are the VAMP Thresholds?
Current Thresholds (October 1, 2025 – March 31, 2026)
Merchants face stricter oversight when they exceed these initial thresholds:
- Merchant Excessive Threshold: 2.2%
- Acquirer Excessive Threshold: 0.7%
Future Thresholds (Starting April 1, 2026)
Visa tightens the standards further with these reduced thresholds:
- Merchant Excessive Threshold: 1.5%
- Acquirer Above Standard Threshold: 0.5%
Minimum Transaction Requirements
Your business must process at least 1,500 combined TC40s and TC15s monthly to enter VAMP monitoring. Merchants below this threshold remain exempt from the program.
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How Is Fraud Measured Under VAMP?
Enumeration Attack Monitoring
VAMP includes enhanced monitoring for enumeration attacks. These are sophisticated fraud attempts where criminals test stolen card data through rapid, small-value transactions. The program flags accounts with:
- 300,000+ enumeration attacks monthly
- 20%+ enumeration transaction ratio
Fraud Detection Integration
The program integrates with Visa Account Attack Intelligence (VAAI) scoring, providing risk-based enforcement that considers multiple fraud indicators beyond simple transaction counts.
What Happens During the Advisory Period?
Extended Grace Period
Visa extended the advisory period through September 30, 2025, giving merchants additional time to adjust their fraud prevention strategies without facing penalties.
Enforcement Timeline
- April 1, 2025: VAMP officially launched
- April 1 – September 30, 2025: Advisory period with no penalties
- October 1, 2025: Full enforcement begins
- April 1, 2026: Stricter thresholds take effect
How Do Dispute Resolution Tools Affect VAMP?
What Counts and What Doesn’t
Visa’s dispute resolution tools provide mixed benefits under the new VAMP structure.
Tools That Help Your Ratio:
- Rapid Dispute Resolution (RDR) removes non-fraud disputes from TC15 counts
- Chargeback Dispute Resolution Network (CDRN) prevents non-fraud chargebacks
Tools With Limited Impact:
- RDR and CDRN do not remove TC40s from your VAMP ratio calculations
- Only Visa CE 3.0 can remove TC40s from your ratio
INCREASE CONVERSIONS, DECREASE CHARGEBACKS
What Should Merchants Do to Prepare?
Immediate Actions Before Oct 1 2025
Audit your current fraud and dispute rates by calculating your VAMP ratio using recent transaction data. Request TC40 and TC15 reports from your acquirer to establish your baseline.
Strengthen your fraud prevention strategy by implementing or upgrading:
- Multi-layer fraud detection systems
- 3D Secure authentication for high-risk transactions
- Address verification systems (AVS)
- Card verification value (CVV) checking
Long-term Compliance Strategy
Optimize your customer service processes to reduce non-fraud disputes:
- Improve billing descriptor clarity
- Enhance return and refund policies
- Implement proactive customer communication
- Train support staff on dispute prevention
Monitor your metrics monthly to track progress toward VAMP compliance. Set internal thresholds well below Visa’s limits to provide buffer room for seasonal fluctuations.
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How Will VAMP Affect Payment Processing?
Penalties and Consequences
Merchants exceeding VAMP thresholds face escalating consequences:
- Increased monitoring and reporting requirements
- Financial penalties and fines
- Processing restrictions or limitations
- Potential termination from Visa’s network
Industry Impact
Payment processors actively prepare enforcement systems for the Oct 1 2025 deadline. Acquirers invest in enhanced monitoring tools and risk management systems to ensure their merchant portfolios remain compliant.
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Conclusion
VAMP is Visa’s most significant monitoring program change in years, consolidating multiple programs into a single, more stringent framework. The Oct 1 2025 enforcement date approaches rapidly, forcing merchants who process card-not-present transactions to prepare.
Success under VAMP requires understanding both TC40s and TC15s, implementing robust fraud prevention measures, and maintaining disciplined monitoring of your VAMP ratio. The program’s double-counting mechanism for fraud disputes makes prevention even more critical than cure.
Merchants who prepare now position themselves for long-term success under Visa’s enhanced monitoring standards. Those who delay face increasing risk of penalties, processing restrictions, and potential network exclusion as enforcement begins this October.
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