✨ Visa’s Acquirer Monitoring Program (VAMP): What It Is, New Fees, and How Merchants Can Avoid Penalties

Visa is rolling out a new Visa Acquirer Monitoring Program (VAMP) on April 1, 2025, 🗓️, to strengthen fraud prevention and streamline how payment disputes are handled. In simple terms, VAMP is Visa’s enhanced risk monitoring system that monitors excessive fraud and chargebacks (disputes) in card-not-present transactions (think online sales 💻). This program combines several existing Visa monitoring programs into one unified framework, making it easier for banks (acquirers) and merchants to track and manage fraud and disputes under a single set of rules 📊.

Visa’s goal with VAMP is to create a safer payment ecosystem for everyone by catching problems early and enforcing stricter standards where needed 🚦. One significant change is the introduction of a new risk metric called the “VAMP Ratio” 📊. This ratio blends both fraud cases and dispute (chargeback) cases into one percentage that reflects overall risk. By looking at fraud and disputes relative to your total sales, Visa can more accurately gauge if a merchant (or their acquirer’s portfolio) has unusually high issues 🚨.

VAMP also introduces monitoring for enumeration attacks — these are rapid-fire card testing attempts by fraudsters trying to guess valid card numbers 🔍💳. Visa’s Account Attack Intelligence tool will flag these suspicious bursts of transaction attempts and help mitigate unauthorized transactions 🛑.

🔥 New VAMP Fees and Thresholds: What Merchants Need to Know

Visa sets new fraud and dispute limits; if you exceed them, you’ll face fines 💸. Here’s what you need to know:

📏 VAMP Thresholds

• Starting April 1, 2025 🚀

  • Acquirers exceeding a VAMP Ratio of 0.5% will be considered “Excessive” ⚠️.

  • Merchants exceeding a VAMP Ratio of 1.5% will be considered “Excessive” ❗.

• Stricter Rules from January 1, 2026 🔧

  • Acquirers with a VAMP Ratio between 0.3% - 0.5% will fall under the “Above Standard” category 📊.

  • Merchants exceeding a VAMP Ratio of 0.9% will be categorized as “Excessive” ❗.

💰 New Fees Under VAMP

• Acquirers will be fined:

  • $5 per dispute (fraud or non-fraud) in the “Above Standard” category.

  • $10 per dispute in the “Excessive” category.

• Merchants exceeding the excessive threshold will be fined $10 per dispute 💸.

• These fees are charged to the acquirer, but guess what? Most acquirers will pass those fees down to merchants 😬, meaning you could see increased processing costs if you’re not actively managing disputes.

⏳ Grace Period for First Offenses

The good news is that Visa gives a 3-month grace period 🕒 if you exceed the thresholds for the first time in a rolling 12-month period.

• No fees will be charged during this time, but you must take action to control your fraud and dispute rates. Otherwise, once the grace period expires, the fines kick in ⚠️.

  
  

⚠️ What This Means for Merchants

For merchants with high chargeback or fraud rates, this means higher costs 💰. For example:

• 200 chargebacks in a month could mean $2,000 in fines 📉.

• Acquirers may terminate merchant accounts that repeatedly exceed the limits 🚫.

• Higher reserve requirements or increased processing fees could be applied if you’re considered high-risk.

  
  

✅ How to Avoid VAMP Penalties: Actionable Steps for Merchants

Don’t worry. You can take steps to stay under the thresholds and avoid fees 💪! Here’s how:

🛡️ 1. Strengthen Fraud Screening

• Use 3D Secure, CVV verification, and address checks to catch fraudulent transactions before they happen 🔍.

• Implement AI-powered fraud detection tools (many acquirers offer them as part of their service).

  
  

📊 2. Monitor Transactions & Metrics Regularly

• Check your fraud and chargeback rates weekly 📅.

• Set alerts with your provider when dispute rates rise 📢.

  
  

🏆 3. Use Dispute Prevention Tools

• Enroll in Visa Rapid Dispute Resolution (RDR) ✅ to automatically resolve disputes before they become chargebacks.

• Use Chargeback Alerts (Verifi/Ethoca) to respond before disputes escalate 🚨.

  
  

📝 4. Improve Customer Communication

• Explicit billing descriptors to reduce “I don’t recognize this charge” disputes 🧐.

• Have an easy refund policy to prevent chargebacks before they happen 💡.

  
  

🤝 5. Work Closely with Your Acquirer/Processor

• Ask for monthly reports on fraud and disputes 📊.

• Ensure they offer chargeback management tools to help you stay compliant ✅.

  
  

🚀 Final Thoughts: Stay Proactive & Protect Your Business

Visa’s new VAMP program raises the bar for fraud and dispute management 🚀. While it does introduce new costs for non-compliance (exceeding Visa’s fraud & dispute thresholds), it also incentivizes merchants to implement best practices 🔥.

✅ Take proactive steps today: Strengthen fraud protection, improve customer service, and use dispute prevention tools to stay below the thresholds ⚖️.

A little preparation now can save you thousands in potential fees later 💰. Stay ahead of the game, and your business will thrive in this new era of payment security! 🚀💡

🎯 Ready to Stay Ahead of VAMP?

Don’t wait until you’re in the red — take control before Visa takes action.

👉 Talk to a Payments Guardian expert today to audit your current chargeback setup, optimize your fraud tools, and stay compliant, protected, and profitable.

Your peace of mind (and your bottom line) depends on it. Let’s lock it in. 🔒💼