New VAMP Rules Are Raising the Stakes for Merchants

Quick Take

VAMP: Visa’s New Standard for Merchant Oversight

Visa’s Acquirer Monitoring Program (VAMP) is the new global framework for how Visa monitors acquirers and, by extension, their merchant portfolios for excessive chargebacks and fraud. As of April 1, 2025, VAMP replaces both the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP), consolidating oversight into a single, more robust system. The goal? To ensure that every acquirer-and every merchant-meets Visa’s evolving standards for dispute and fraud management.

Why the change? The payments landscape has shifted dramatically, with fraud tactics evolving and dispute volumes rising in many sectors. Visa’s previous programs monitored fraud and disputes separately, which sometimes led to gaps in enforcement or confusion about compliance. VAMP brings a unified approach, with clearer thresholds and more direct accountability for both acquirers and merchants.

How VAMP Raises the Stakes for Merchants

VAMP is not just a rebranding. It introduces stricter thresholds, expanded monitoring criteria, and a more aggressive enforcement posture. Here’s what’s different:

• Unified Monitoring: Instead of tracking fraud and disputes in silos, VAMP evaluates both under one roof, making it harder for merchants to “fly under the radar” if they have issues in just one area.
• Lower Tolerance: The thresholds for acceptable chargeback and fraud ratios have been tightened. Merchants who exceed these limits can trigger immediate remediation protocols, with less room for error or delay.
• Faster Escalation: Non-compliance can result in swifter penalties, including fines, higher processing costs, and even merchant account termination. Acquirers are incentivized to act quickly, which means merchants may see more proactive interventions from their payment partners.
• Portfolio Impact: Acquirers are now held to higher standards for their entire merchant portfolio. If a merchant’s ratios threaten the acquirer’s standing, the pressure to remediate-or offboard-problem merchants will be intense.

What Merchants Need to Watch: Chargeback and Fraud Ratios

VAMP sets explicit thresholds for both chargeback and fraud activity. While the exact numbers may vary by region and merchant category, the general rule is clear: keep your dispute and fraud ratios well below 1% of total transactions to avoid triggering enforcement actions.

Common pitfalls that can push merchants over the line include:

• Poor billing descriptors that confuse customers and lead to unnecessary disputes.
• Lax fraud prevention, especially in card-not-present environments.
• Inadequate customer service or slow response to complaints.
• High-risk business models or products that naturally attract more disputes.

Proactive Strategies to Stay Below VAMP Thresholds

Staying compliant with the Visa Acquirer Monitoring Program is not just about reacting to problems-it’s about building a proactive, data-driven approach to dispute and fraud management. Here’s how successful merchants are adapting:

• Invest in fraud prevention tools: Solutions like 3-D Secure, address verification, and real-time fraud scoring can help you catch suspicious transactions before they become chargebacks.
• Use chargeback alerts and dispute management software: Platforms that integrate with Visa’s Rapid Dispute Resolution (RDR), Verifi CDRN, and Ethoca Alerts can notify you of disputes before they escalate, giving you a chance to issue refunds or resolve issues directly with customers. Learn more about chargeback alerts and dispute management.
• Improve internal processes: Clear billing descriptors, prompt customer service, and robust documentation of every transaction are essential. Train your staff to recognize and respond to dispute triggers quickly.
• Leverage analytics: Regularly review your chargeback and fraud data to spot trends, identify root causes, and adjust your policies before problems spiral.

The Role of Merchant Service Providers in the VAMP Era

Merchant service providers (MSPs) and acquirers are under more pressure than ever to monitor their merchant portfolios and intervene early when problems arise. For merchants, this means:

• Expect more frequent communication from your acquirer or MSP about your dispute and fraud ratios.
• Be prepared for enhanced due diligence, especially if your business model is high risk or you operate in industries with historically higher dispute rates.
• Collaboration is key. Work with your MSP to implement best practices, share data, and stay ahead of enforcement actions.

Where Do You Go from Here?

If you haven’t reviewed your chargeback and fraud management strategy in the last six months, now is the time. The Visa Acquirer Monitoring Program raises the stakes for everyone in the payments ecosystem. Merchants who take a proactive, technology-driven approach will not only avoid penalties but also build stronger, more resilient businesses.

If you’re unsure where to start, consider reaching out to a chargeback management expert. The right partner can help you implement the tools and processes needed to keep your ratios in check and your revenue flowing.

Why ChargebackHelp?

ChargebackHelp offers a unified platform that brings together the best in chargeback alerts, dispute management, and revenue recovery. Our solutions integrate directly with Visa’s tools and industry-leading platforms like Verifi Order Insight and Ethoca Consumer Clarity, giving you real-time visibility and control over your dispute landscape. With ChargebackHelp, you can automate evidence submission, receive timely alerts, and recover lost revenue-all while staying compliant with VAMP’s new rules. If you want to reduce your risk, lower your costs, and stay one step ahead of network enforcement, contact us today.