Important update on Visa's new dispute thresholds
You may recall that we recently let you know about the launch of the Visa Acquirer Monitoring Program (VAMP) - a new comprehensive program focused on card-not-present transactions replacing existing initiatives. This formally came into effect on 1st April 2025 and seeks to monitor elevated levels of fraud, enumeration, and dispute activity across the Visa network.
At the time, we were told that disputes resolved through Visa's proprietary tools, such as Verifi and Rapid Dispute Resolution (RDR), are excluded from these calculations. However, since then Visa has decided that this exclusion will no longer apply.
Full information on the revised VAMP process can be found below, but here are the key elements to be aware of:
- Effective 1st April 2025, a new comprehensive indicator metric will be used to consider transaction count and combine all types of disputes (both fraud and non-fraud). Occurrences of card testing activities (enumeration) are of particular concern. Anything above 1.5% will be considered excessive, and this will be lowered to 0.9% in 2026. If you are considered excessive, additional fees and penalties will be imposed by Visa as part of VAMP. If Trust Payments incurs these costs, we will pass these on to you.
- For a merchant to be considered under VAMP, they must have at least 1,000 combined fraud and non-fraud disputes per month. There are various grace periods available at Visa’s discretion, but we hope this advance notice avoids you needing to use these.
- The primary goal of these new thresholds is to encourage both merchants and acquirers to implement robust payment fraud prevention measures and enhance consumer protection and we are committed to helping you achieve this with our risk management tools.
If you have any questions or concerns, please contact our Support Team.
Introduction
In April 2025, Visa is implementing a significant change to its merchant monitoring programs. The current Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) are being replaced by a new, comprehensive program called the Visa Acquirer Monitoring Program (VAMP). Whilst VAMP has long been a program focusing on the overall performance of acquirers, the change will now extend to merchants as well.
The Visa Acquirer Monitoring Program (VAMP) is a comprehensive program focused on card-not-present transactions. It's designed to monitor elevated levels of fraud, enumeration, and dispute activity across the Visa network. To maintain compliance with VAMP, we will be working closely with our registered agents and merchants to ensure they stay within acceptable thresholds for these performance metrics. This is achieved through the implementation of robust risk mitigation measures, remediation and ongoing monitoring of transaction patterns.
This guide provides essential information about the Visa Acquirer Monitoring Program (VAMP) and aims to prepare merchants for the upcoming changes Visa is implementing. We've compiled key details to help our merchants understand and adapt to this new program effectively.
Key Changes and Implementation Timeline
It's important to note that changes will be made in Europe initially and then applied to the rest of the world. Below are the highlights of the key changes and timeline:
1. Program Consolidation
- Visa Dispute Monitoring Program (VDMP) will be retired on 31st March 2025.
- Visa Fraud Monitoring Program (VFMP) will also cease operations on 31st March 2025.
- The updated Visa Acquirer Monitoring Program (VAMP) will take effect on 1st April 2025.
2. Geographic Roll-out Strategy
- Initial implementation will begin in the Visa Europe region.
- Subsequent phases will see the program expanded to the rest of the world.
3. VAMP Enhancements
- Elimination of the "above standard" threshold for merchants, while retaining it for acquirers.
- Introduction of a new comprehensive indicator metric that considers transaction count and combines all types of disputes (both fraud and non-fraud).
- Retirement of previous indicator metrics in favour of this new, more holistic approach.
4. Transition Period
- A transitional phase has been established from 1st April 2025 to 31st December 2025.
- This period will allow merchants and acquirers to adapt to the new program requirements.
5. Impact on Acquirers and Merchants
- As acquirers, we will need to revise our risk management strategies to align with these changes.
- We will play a crucial role in supporting our merchants through this transition, helping them understand and adapt to the new VAMP requirements.
Program Identifications and Thresholds
Effective 1st April 2025, Visa is implementing new thresholds for the Visa Acquirer Monitoring Program (VAMP). The initial merchant threshold will be set at 1.5%, with a planned reduction to 0.9% starting 1st January 2026. Merchants exceeding these thresholds will be classified as "excessive" under the program.
- VAMP Ratio: Count of TC40 + Count of TC15 Non-Fraud Disputes / Count of Total Settled Transactions
- Enumeration Ratio: Count of Enumerated Authorization Transactions (approved + declined) / Count of Authorization Transactions (approved + declined)
For clarity, Visa defines dispute categories as follows:
- Fraud disputes: Card-absent fraud (TC40) transactions, counted by post date
- Non-fraud disputes: Disputes under condition codes 11, 12, and 13 (TC 15), counted by central processing date (CPD)
- Total sales count: Also calculated based on CPD
Merchants or acquirers labelled as "excessive" will be enrolled in the VAMP program, which entails additional fees and penalties. It's important to note that this classification applies separately to each merchant ID (MID) or acquiring entity.
The primary goal of these new thresholds is to encourage both merchants and acquirers to implement robust payment fraud prevention measures and enhance consumer protection. As your acquiring partner, we're committed to helping you navigate these changes and maintain compliance with the new VAMP requirements.
Count of TC40 + Count of TC15 Non-Fraud Disputes Count of Total Settled Transactions
Count of Enumerated Authorisation Transactions (approved + declined) Count of Authorisation Transactions (approved + declined)
Introducing the Enumeration Ratio
A key addition to VAMP is the new enumeration ratio, designed to encourage the detection and prevention of card testing activities. Card testing, also known as enumeration, involves fraudsters attempting to validate stolen card details through multiple small transactions.
For our merchant partners, it's crucial to identify and block these transactions. Under VAMP, if more than 20% of a merchant's submitted transactions are identified as enumeration attempts, the merchant will be enrolled in the program for closer monitoring and risk mitigation.
The enumeration ratio is calculated using the following formula:
Count of Enumerated Transactions Total Count of Transactions
This new metric underscores the importance of implementing robust fraud detection measures to protect both merchants and acquirers from potential financial losses and reputational damage.
VAMP-Eligible Transactions
The calculation of new VAMP rates and enumeration rates focuses solely on card-not-present (CNP) transactions, including both domestic and cross-border transactions. The calculation incorporates non-fraud dispute condition codes, specifically 11 (Authorization), 12 (Processing Error), and 13 (Customer Disputes).
For a merchant to be considered under VAMP, they must have at least 1,000 combined fraud and non-fraud disputes per month, which are used to determine the VAMP ratio.
Enforcement and Fees
First-time identifications within a rolling 12-month period receive a 3-month grace period before enforcement actions.
Subsequent identifications after the grace period are subject to enforcement actions and fees: $10 per card-absent fraud and dispute non-fraud.
A remediation plan should outline root cause and detailed mitigation strategy to bring dispute, fraud, and enumeration levels below VAMP thresholds.
Non-compliance for 3+ consecutive months may lead to additional enforcement, including Risk Reduction Conditions.
VAMP Thresholds for Acquirers
Visa is implementing new, more stringent VAMP thresholds for acquirers, distinct from those applied to merchants:
- Transitional Period (1st April - 31st December 2025): "Above Standard" threshold: 0.5%
- Permanent Thresholds (Effective 1st January 2026): "Excessive" threshold: 0.5% and above with "Above Standard" range: 0.3% to 0.5%
- It's crucial to note that the new "Above Standard" threshold of 0.3% represents a significant tightening, reduced to just one-third of the previous 0.9% benchmark.
- Financial Implications: Exceeding these thresholds triggers per-dispute fees across an acquirer's entire merchant portfolio:
- "Above Standard" classification: $5 per dispute
- "Excessive" classification $10 per dispute
- These changes underscore the importance of robust risk management and dispute prevention strategies for acquirers.
It's important to emphasize that merchant compliance with VAMP thresholds does directly impact an acquirer's overall performance. Given the stringent new acquirer thresholds, ensuring individual merchant compliance is more important than ever.
Trust Payments values your business and will always strive to ensure both our merchants and our own operations remain below these thresholds. We're committed to working together for a fruitful and successful relationship whilst maintaining compliance with Visa's risk appetite.
