As of April 1, 2025, Visa is launching the Acquirer Monitoring Program (VAMP), setting stricter compliance requirements for merchants and acquirers in the payment ecosystem. The program consolidates previous initiatives, such as the Visa Fraud Monitoring Program (VFMP) and the Visa Dispute Monitoring Program (VDMP), into one comprehensive framework aimed at enhancing transaction security.
"Our goal with VAMP is to create a more robust and secure environment for electronic payments by monitoring and mitigating risks effectively," said a Visa spokesperson. The new regulations come as part of Visa's commitment to uphold high standards for transaction security, especially with card-absent transactions that see a high volume of disputes.
One of the significant changes VAMP introduces is a unified threshold for monitoring. Starting on January 1, 2026, even stricter requirements will take effect. To ease the transition for businesses, the advisory period—which was initially three months—has been extended to last until October 1, 2025, allowing merchants some extra breathing room to comply without facing penalties.
Merchants involved in card-absent transactions are particularly affected by these new rules. Those exceeding the specific thresholds set by VAMP may be classified as "excessive," which could lead to fines, increased scrutiny, or even processing restrictions. Underlining this importance, the spokesperson emphasized, "Understanding these classifications is crucial for businesses to maintain compliance."
The formula for calculating the VAMP ratio is straightforward: (Fraudulent transactions + non-fraud disputes) / Total settled card-absent transactions. Exclusions from this formula include disputes resolved through tools like Rapid Dispute Resolution (RDR), as well as other specific Visa reason codes.
Different regions will have varying enrollment thresholds. For instance, the Latin American and Caribbean (LAC) region is set at 0.9%, while the U.S., Canada, Europe, Central Europe, the Middle East, Africa (CEMA), and Asia-Pacific (AP) regions face a higher standard of 1.5%. Additionally, both merchants and acquirers will need to have at least 1,000 disputes per month for enrollment.
When assessing compliance, merchants must also recognize the new VAMP enumeration ratio, monitored by Visa to capture large-scale card testing attacks. Merchants handling fewer than 300,000 enumerated transactions fall outside of this metric.
The financial implications of non-compliance are considerable. Fines of $10 will be imposed for each excessive merchant or acquirer transaction, while those labeled above the standard will face a penalty of $5 per fraudulent or disputed transaction. No fees will be applied from April to September 2025, but full enforcement will begin on October 1, 2025.
To alleviate potential risks and ensure compliance with VAMP’s requirements, experts advocate for several strategies. For example, training staff on fraud prevention and updating internal policies can help mitigate disputes.
“Regularly track dispute ratios and transaction trends to keep them below VAMP thresholds—this can make a significant difference,” emphasized a payments analyst. By enhancing their dispute resolution processes through tools such as RDR and Order Insight®, merchants can not only address disputes effectively but also maintain a healthy VAMP ratio.
RDR, Visa’s automated coping mechanism, allows merchants to pre-authorize refunds under specific conditions to prevent escalation. "RDR helps businesses avoid formal chargebacks by issuing instant refunds for disputes meeting set criteria," said a Visa implementation manager. This capability to resolve issues before they reach the chargeback stage makes RDR a crucial element in the compliance toolkit.
Moreover, Order Insight®—developed by Visa subsidiary Verifi—enables merchants to communicate transaction details directly to issuers when a customer challenges a charge. This capability reduces disputes significantly. “Empowering issuers to clarify customer concerns before they escalate into chargebacks is essential,” noted a Verifi representative.
In summary, Visa's VAMP program signifies a notable shift in the compliance landscape for merchants and acquirers. Adaptation is no longer optional; it's crucial to navigate these changes successfully. As we approach the enforcement date, businesses must proactively adjust their operational strategies to safeguard against penalties and ensure a seamless transition into this new, more secure compliance era.