Important Developments for European Acquirers & Merchants: Major Updates Coming to the Visa Acquirer Monitoring Program (VAMP)
Visa maintains strict monitoring on the number of chargebacks an acquirer and their merchants are allowed to receive each month.
As a merchant, if your monthly chargeback ratio exceeds these limits, you could be forced into a chargeback monitoring program. This means incurring added fees, restrictions on your activities and, if the problem remains persistent, your bank may be forced to freeze or terminate your bank account entirely.
At least, that was the way it worked. However, with a newly announced overhaul to the Visa Acquirer Monitoring Program ( or “VAMP”) set to take effect in 2025, we will see changes which will simplify and evolve this process. This program update will transform the way both merchants and acquirers interact with the Visa risk ecosystem.
Recommended reading
- Visa Chargeback Rules: Your “A-to-Z” Guide for Visa Disputes
- What is the Visa Arbitration Process for Chargebacks?
- Visa Chargeback Time Limits: The 2024 Guide
- Visa Authorization Rules: Changes to Time Frames & Options
- Visa Chargeback Fees: 8 Tips to Help You Cut Dispute Costs
- Visa Resolve Online: The Guide to Manage Disputes With VROL
What is the Visa Acquirer Monitoring Program?
- Visa Acquirer Monitoring Program
The Visa Acquirer Monitoring Program (VAMP) is a consolidated initiative that tracks acquirer activity related to fraud and chargebacks. It leverages a transaction count-based metric and the Visa Account Attack Intelligence (VAAI) Score system to offer better risk-based enforcement and improved fraud coverage.
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Before going into the details of the program updates, it will be helpful to have a working knowledge of the Visa Acquirer Monitoring Program.
The VAMP is designed to help acquirers, their designated agents, and merchants maintain robust controls and oversight of risk. The ultimate aim is to protect the Visa brand from undesirable fraud and chargeback activity by deterring fraudulent and compromising business practices in the Visa ecosystem.
Each month, Visa will examine the performance of acquirers and their merchants. The card network will conduct a thorough review of non-fraud disputes filed on card-not-present transactions, as well as fraud incidents and enumeration performance. Visa will gauge performance conduct on the previous month's overall sales activity.
Visa aims to collaborate with acquirers to ensure the security of the payments environment. To this end, a Visa representative may reach out to discuss the program's performance, the remediation plan, and any relevant issues to assist acquirers.
What's Changing?
Beginning April 1, 2025, Visa will phase out its Visa Fraud Monitoring Program (VFMP) and Visa Dispute Monitoring Program (VDMP) for merchants operating in most global regions. The Visa Acquirer Monitoring Program will be enhanced to effectively replace these two programs.
Under current Visa rules, the program thresholds are as follows:
VDMP
| Program | Monthly Threshold |
| VDMP Early Warning | 0.65% chargeback ratio and 75 chargebacks |
| VDMP Standard | 0.9% chargeback ratio and 100 chargebacks |
| VDMP Excessive | 1.8% chargeback ratio and 1,000 chargebacks |
VFMP
| Program | Monthly Threshold |
| VFMP Early Warning | $50,000 and 0.65% of sales value |
| VFMP Standard | $75,000 and 0.9% of sales value |
| VFMP Excessive | $250,000 and 1.8% of sales value |
VAMP
| Program Level | Program Threshold |
| VAMP Card-Absent Dispute Threshold | 750 disputes and 1% dispute ratio |
| VAMP Card-Absent Fraud Threshold | $500,000 in card-absent fraud and 1% fraud-to-sales ratio |
The revised VAMP program will feature a new transaction count-based metric based which measures reported fraud and non-fraud chargebacks together. This will be accompanied by new criteria based on confirmed enumerated transactions, identified and confirmed by the Visa Account Attack Intelligence (VAAI) Score system, rather than Risk Operations Center (ROC)-blocked transactions.
Additionally, Visa Acquirer Monitoring Program will transition from non-compliance assessment-based enforcement to risk-based enforcement. This will provide greater flexibility for clients and accommodating varying levels of risk appetite.
As per Visa, enumeration is “the criminal practice of submitting fraudulent card not present transactions into the payments ecosystem in order to obtain valid payment information.” An enumeration attack is closely related to card testing; a scammer will systematically submit transactions with partial cardholder information to try and identify valid data attributes. In the context of VAMP, we’re referring here to transactions submitted by merchants that are, themselves, engaged in an enumeration attack.
What is Visa OneERS?
Another major change to come as a part of this update will be the introduction of the Visa’s OneERS technology.
OneERS is a new risk technology tool being introduced by Visa. It’s a case management apparatus that will allow Visa acquirers to independently monitor their portfolio performance. These acquirers can then automate key aspects of case management, with the goal being to improve operational efficiencies for all parties.
Visa will use OneERS to provide access to a performance tracking dashboard, enabling acquirers to understand the key drivers of their performance. They can then engage in more self-service management of cases.
OneERS is designed to be usable for all risk management services in the Visa ecosystem. The tool uses a Microsoft Dynamics interface and is accessible through Visa Online for ease of use.
Visa has committed to providing clients with training and materials for OneERS prior to the program’s launch in April 2025.
Revised VAMP Program Thresholds & Enforcement Levels
An acquirer is identified as being in the Visa Acquirer Monitoring Program if they meet or exceed either the new fraud and disputes ratio, or the new enumeration ratio. These are calculated as follows:
In the table below, we’ve outlined the current program thresholds, as well as the new thresholds set to take effect in April 2025:
| Details | Acquirer | Merchant | ||
|---|---|---|---|---|
| Above Standard | Excessive | Excessive | Excessive | |
| VAMP Ratio | VAMP Ratio | VAMP Ratio | Enumeration Ratio | |
| Threshold Effective Date: April 1st, 2025 | N/A | greater than 0.5% | greater than 1.5% | greater than 20% |
| Threshold Effective Date: January 1st, 2026 | greater than 0.3%, but less than 0.5% | greater than 0.5% | greater than 0.9% | greater than 20% |
| Additional Criteria |
|
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Identified acquirers will receive notification of their status from Visa and are expected to make a response. This notification will explain:
- The reason for the identification
- Response timeline
- Consequences for noncompliance
- Best practices (when applicable)
In response, acquirers must enhance their risk control environment and address the issues that led to their identification. They are required to submit a remediation plan within 15 calendar days that addresses the root causes of the performance issues.
VAMP Enforcement Levels
Acquirers who surpass the identification thresholds are flagged for the Visa Acquirer Monitoring Program and are required to take corrective actions. VAMP identifies two levels of performance issues:
“Above Standard” Level
“Excessive” Level
Acquirers identified as Above Standard or Excessive due to fraud and disputes will be subject to fines. These fines are intended to encourage acquirers (and by extension, their merchant clients) to behave responsibly in regards to fraud and dispute management.
First-time violations within a rolling 12-month period will result in an acquirer being given a three-month grace period in which to fix the problem. After that grace period ends, fines may be applied to every non-fraud dispute or TC40 received involving any merchant with a Visa Acquirer Monitoring Program ratio above 0.3% of transactions. Fines can also be applied to the acquirer if a specific merchant exceeds the thresholds.
A Visa Acquirer Monitoring Program fine will not be applied to acquirers in the European and Asia-Pacific regions if an unsecured dispute fee is applied.
Different fees will be applied at different levels of the program. As of this writing, these are the fees that will be assessed, effective as of the dates in the table in the above section.
Above Standard Acquirer
Excessive Acquirer
Excessive Merchant
When Do All These Changes Take Effect?
Visa is going to take a gradual approach to the enforcement of these new rules and processes.
The rollout will begin with a 90-day advisory period, extending from April 1 through June 30. Visa will not assess any fines to acquirers during this period. But, acquirers should take this time as an opportunity to ensure that they have appropriate risk controls in place.
Visa will start assessing fines to acquirers, in line with the table in the Revised VAMP Program Thresholds & Enforcement Levels section, beginning on July 1, 2025.
What Do Merchants & Acquirers Need to Do?
In short: make sure you’re using all the tools at your disposal.
The Visa Acquirer Monitoring Program is built to encourage merchants to take advantage of Visa and Verifi’s dispute management services. Any dispute resolved through Verifi CDRN or Visa Rapid Dispute Resolution (RDR) will be exempt from impacting Visa monitoring ratios. This covers Order Insight and Compelling Evidence 3.0, as well as resolved TC40 notices via CDRN or RDR.
As per previous updates published by Visa, these changes were originally only to impact acquirers operating in the Europe region. As of this writing, these changes will apply in all regions except Latin America.
What Do These Changes Mean For Merchants?
At present, all chargebacks count against your chargeback ratio. Even if you refund a dispute to prevent a chargeback, it can still adversely affect your fraud-to-sales ratio and/or dispute-to-sales ratio. Plus, like we mentioned above, you will face higher processing fees and penalties if either of those indicators surpass a specific limit.
The Visa Acquirer Monitoring Program will offer merchants a way to avoid the restrictions associated with VDMP and VFMP, provided disputes are resolved through designated Visa and Verifi channels. It will also lead to enhanced fraud coverage across the ecosystem.
What do these changes mean for Acquirers?
The Visa Acquirer Monitoring Program program aims to assist acquirers in managing the levels of risk, fraud, and disputes in their portfolio.
These changes give acquirers more flexibility to manage their overall portfolio. It also enhances their ability to manage and maintain effective oversight of individual merchants.
In Conclusion...
After April 1, 2025, tools like CDRN, RDR, and Order Insight with CE3.0 will be more crucial than ever in helping Visa Europe merchants minimize dispute exposure. Moreover, resolving disputes through these platforms will not invite penalties.
Merchants can also expect additional benefits like increased authorization rates and lower reserve requirements owing to reduced dispute ratios.
The changes to the Visa Acquirer Monitoring Program represent a significant evolution in compliance activity associated with dispute management. Our European clients can look forward to the same protective measures offered by our integrated tools of CDRN, RDR, and Order Insight, but now with additional flexibility in managing their processing ratios courtesy of VAMP.
Not currently using tools like CDRN or RDR? You’re leaving money on the table. Talk to one of our experts today to get started and see your fraud and chargeback liability shrink by as much as 90% overnight.
FAQs
What is an acquirer chargeback monitoring program?
The Visa Acquirer Monitoring Program is a system implemented by Visa to track and manage the frequency and volume of chargebacks incurred by merchants and acquirers. It aims to identify high-risk merchants and reduce fraudulent activities by setting thresholds and corrective measures.
What is the Visa RDR program?
The Visa Risk Dispute Resolution (RDR) program is an initiative designed to streamline the dispute resolution process for chargebacks. It aims to reduce chargeback rates by implementing a clear framework for identifying and addressing fraudulent or erroneous transactions.
What is the threshold for Visa chargebacks?
The threshold for Visa chargebacks is typically set at 0.9% of the total number of transactions processed and 100 chargebacks in a calendar month. Exceeding this threshold may result in the merchant entering a chargeback monitoring program where additional scrutiny and corrective actions will be enforced.
