Visa Announces Even More VAMP Changes

On May 15th, 2025, Visa announced significant updates to the Visa Acquirer Monitoring Program (VAMP). These changes include adjustments to how VAMP ratio is calculated, revised thresholds for merchants and acquirers, reduced fees, and updated enforcement timelines.

For acquirers and merchants that process card-not-present transactions, understanding these updates is key to avoiding penalties. While the new thresholds appear more lenient, the revised calculation method means many merchants may face higher ratios than before.

What is VAMP?

Visa's VAMP is a unified program that combines Visa’s previous fraud and dispute monitoring programs into a single framework. Before April 2025, merchants were subject to separate programs—VDMP for chargebacks and VFMP for fraudulent transactions. The consolidation aims to simplify compliance while providing a clearer view of transaction risks.

Key aspects of VAMP include:

• A single ratio for tracking both disputes and fraud.
• New rules on how prevention tools affect reporting.
• Much stricter ratio requirements for acquirers.

This shift means merchants and acquirers must adapt their dispute and fraud management strategies to stay compliant.

VAMP Changes Announced on May 15th

Calculation of VAMP Ratio

As initially outlined, VAMP ratio included all TC40 fraud reports plus all non-fraud disputes. Under Visa’s newly revised framework, it counts all disputes plus all TC40 reports, meaning fraud-related disputes are effectively counted twice: once as a dispute and again as a TC40 report.

Reported fraudulent transactions + Total disputes 
_____________________ ÷ ____________________
Total settled transactions

Tools like chargeback prevention alerts and Order Insight can help avoid chargebacks, which may also prevent TC40 reports. However, issuers can still file TC40 reports at their discretion, even if a dispute is stopped. Visa has stated that disputes resolved through Rapid Dispute Resolution (RDR) will be removed from the dispute count, but not the TC40 count, while those resolved through Compelling Evidence 3.0 (CE3.0) will be removed from both counts.

Threshold Adjustments

For Merchants:

• The initial excessive threshold has been increased from 1.5% to 2.2%.
• Starting April 1, 2026, the excessive threshold drops to 1.5% (previously 0.9%).
• The minimum number of disputes and TC40 reports needed to trigger VAMP monitoring increased from 1,000 to 1,500.

For Acquirers:

• The early warning threshold has been increased from 0.2% to 0.4%.
• The above-standard threshold has been increased from 0.3% to 0.5%.
• The excessive threshold has been increased from 0.5% to 0.7%.

Fee Reductions

Merchants and acquirers who are enrolled in the monitoring program after three consecutive months of exceeding applicable thresholds will be charged fees per dispute and TC40 report once enforcement begins. Visa’s update reduced these fees slightly:

• Acquirers (Above Standard): Reduced from $5 to $4.
• Acquirers (Excessive): Reduced from $10 to $8.
• Merchants (Excessive): Reduced from $10 to $8.

Enforcement Timeline Updates

In a previous update from Visa, the advisory period for VAMP, during which no penalties apply, was extended through September 30, 2025. Enforcement for the excessive level will begin the following day on October 1. This most recent update also pushed back the date when the excessive threshold for merchants will be reduced. Previously this was scheduled to occur on January 1, 2026, but the new date is April 1, 2026.

Acquirers:

• Enforcement of excessive threshold begins: October 1, 2025
• Enforcement of above-standard threshold begins: January 1, 2026

Merchants: 

• Enforcement of excessive threshold begins: October 1, 2025
• Excessive threshold is reduced from 2.2% to 1.5%: April 1, 2026

The New Thresholds and Their Implications

At first glance, the new excessive thresholds appear higher than those previously announced. However, because fraud-related disputes are now double counted, merchants and acquirers will see their VAMP ratios increase significantly.

For example:

• Under the old system, a merchant with 70 fraud disputes and 10 non-fraud disputes out of 10,000 transactions had a 0.8% ratio, just below the 0.9% threshold for 2026.
• Under VAMP, the same merchant would have (70 TC40 reports + 80 disputes) ÷ 10,000 = 1.5%—already at the 2026 threshold.

Those for whom fraud represents a minority of their disputes will experience some relief from this new calculation method, as the increased limits will more than make up for the double counting issue. However, merchants and acquirers for whom most disputes are tied to claims of fraud will effectively face stricter limitations than before.

How Merchants Can Prepare

Merchants must take proactive steps to adapt to the updated VAMP requirements before enforcement begins in October. A strong focus on prevention is more important than ever, and now is the time to test new tools and technologies to determine the best solution.

Chargeback prevention alerts and Order Insight can help intercept disputes before they escalate into chargebacks, though merchants should be aware that TC40 reports may still be filed independently. Investing in these tools can reduce—but not fully eliminate—exposure to inflated VAMP ratios.

Dispute management strategies should also be refined. Prioritizing Rapid Dispute Resolution (RDR) and Compelling Evidence 3.0 (CE 3.0) for eligible cases ensures that disputes are removed from the count.

Merchants should review their dispute response workflows to maximize the use of these resolution pathways. Enlisting expert help from a company like Chargeback Gurus can ensure these prevention tools are used strategically to ensure maximum ROI.

Collaboration with acquirers will be critical. Given the heightened pressure on acquirers to maintain low portfolio-wide ratios, merchants should engage in open dialogue about their performance and any upcoming policy changes.

Some acquirers may offer guidance or resources to help merchants stay compliant, while others might enforce new requirements with little flexibility. Understanding these expectations early allows businesses to adjust their operations accordingly and avoid sudden penalties or account restrictions.

Finally, monitoring VAMP ratio for each Merchant ID (MID) can help identify potential problems before enforcement begins and ensure thresholds aren’t exceeded afterward.

Conclusion

Visa’s May 15th updates to VAMP introduce significant changes for merchants and acquirers. The advisory period offers a temporary reprieve, but merchants should take this time to review their processes, adopt prevention tools, and work closely with acquirers to avoid penalties.

For tailored guidance on adapting to VAMP, consulting with chargeback experts can help businesses stay compliant and minimize risk.