Key Takeaways
- Visa’s new VAMP program merges fraud and dispute monitoring and uses a single ratio that can be inflated by double-counting.
- Stricter thresholds begin in early 2026, with $8 fees for each fraudulent or disputed transaction above limits.
- Prevention tools like RDR, CE3.0, Order Insight, and Verifi CDRN help reduce counts, but TC40 filings remain unpredictable.
- Merchants should track ratios closely, improve fraud controls, and prepare for tighter limits from their acquirers.
As we head into the final stretch of 2025, change continues to define the payments industry, with Visa leading the charge in enhancing security and compliance. At Durango Merchant Services, we’re committed to helping high-risk and traditional merchants alike stay ahead of these changes. One of the most significant updates this year is the Visa Acquirer Monitoring Program (VAMP), which went live on April 1 and began enforcement on October 1.
Drawing from insights in Tim Tynan’s recent article, we’ll break down what VAMP means for your business, the potential challenges, and practical steps to maintain compliance—while highlighting how our tailored merchant services can support you every step of the way.
What is the Visa Acquirer Monitoring Program (VAMP)?
Visa has streamlined its oversight by merging the Dispute Monitoring Program (VDMP) and Fraud Monitoring Program (VFMP) into a unified framework: VAMP. This program focuses exclusively on card-not-present (CNP) transactions, aiming to simplify monitoring while cracking down on excessive fraud and chargebacks.
The New Unified Ratio
At its core, VAMP introduces a single ratio to measure performance:
(Reported fraudulent transactions (TC40) + Total chargebacks (TC15)) ÷ Total transactions
The VAMP formula can be tricky and misleading because the same fraudulent transaction can get counted twice against acquirers and merchants. Here’s how that can happen:
When a cardholder reports fraud, the issuer typically sends a TC40 fraud report for each transaction.
Separately, the issuer may also file a chargeback for some of those transactions—usually only the larger or more risky ones.
So even though the merchant experienced 10 fraudulent transactions, Visa may count them like this:
10 TC40 fraud reports
4 chargebacks (for the higher-value items)
These two categories are added together in the VAMP formula, meaning the ratio treats this as 14 problem transactions, not 10. This artificially inflates your fraud/dispute ratio and makes it easier to hit thresholds.
Visa calculates your ratio once per month, using the previous month’s data.
To reduce how many items count against you, merchants can implement prevention tools such as RDR, CE3.0, Order Insight, and Verifi CDRN (covered below)—each of which helps eliminate or offset certain dispute types before they appear in Visa’s monitoring system.
What Is a TC40 Report?
How issuers flag cardholder-reported fraud to Visa
A TC40 report is a fraud notification that a card issuer sends to Visa when a cardholder claims a transaction is unauthorized. TC40s let Visa, issuers, and acquirers track potential fraud and compromised cards at the network level.
When Are TC40 Reports Filed?
- Whenever a cardholder reports fraud or an unauthorized transaction.
- Even if the issuer does not file a chargeback.
- Even on small-dollar transactions the issuer chooses not to dispute.
- Even if the merchant refunds the customer or resolves the issue directly.
- Even when prevention tools like RDR or Verifi CDRN stop the dispute from becoming a chargeback.
Because TC40 filings are controlled entirely by the issuer and can be filed with or without a chargeback, the same incident can be counted twice in programs like VAMP (once as a TC40 and once as a chargeback), which can inflate your fraud/dispute ratio.
Key Prevention Tools
Rapid Dispute Resolution (RDR): Subtracts from chargebacks but not fraud counts.
Compelling Evidence 3.0 (CE3.0): Subtracts from both chargebacks and fraud counts.
Order Insight: Prevents disputes by providing info to cardholders, avoiding both reports and chargebacks.
Verifi CDRN Alerts: Allows refunds before chargebacks, reducing counts.
However, TC40 filings remain at the issuer’s discretion, adding an element of unpredictability.
VAMP Thresholds, Fees, and Enforcement Phases
Visa is rolling out enforcement in phases to give businesses time to adapt. Currently, the focus is on “Excessive” levels, with tighter limits coming soon:
Thresholds and Fees Overview
| Entity | Phase 1 (Current) Threshold | Phase 2 Threshold (Starting Jan. 1 for Acquirers; April 1 for Merchants) | Fees for Exceeding |
|---|---|---|---|
| Acquirers – Above Standard | N/A | 0.5% | $4 per fraudulent/disputed transaction (Above Standard); $8 (Excessive) |
| Acquirers – Excessive | 1.0% | 1.0% | $8 per fraudulent/disputed transaction |
| Merchants – Excessive | 2.2% | 1.5% | $8 per fraudulent/disputed transaction |
Exceeding these limits triggers fees on each fraudulent or disputed transaction, which can add up quickly for high-volume merchants. Acquirers face the biggest shift, with their dispute ratio limit halving from 1% under the old system.
What are The Key Updates and Timeline for VAMP?
Since its announcement, Visa has refined VAMP based on feedback:
March 11, 2025: Reversed a decision to remove TC40 reports from resolved disputes via RDR or Verify CDRN.
March 24, 2025: Extended the advisory period to September 30.
May 15, 2025: Adjusted the formula to include fraud-related disputes alongside TC40s, raised ratio limits, reduced fees, and delayed stricter merchant limits to April 1, 2026.
Visa has stated these are the final changes, so now’s the time to lock in your compliance strategy.
How VAMP Impacts Merchants Like Yours
The program’s effects vary by industry and chargeback profile. For merchants dealing heavily in fraud-related disputes (e.g., e-commerce or digital goods), double-counting could push ratios higher, increasing the risk of fees. On the flip side, if your chargebacks are non-fraud related, the looser initial limits might provide breathing room.
Acquirers, however, must manage their entire portfolio to stay under 0.5% starting January 1. This could lead some to impose even stricter limits on individual merchants—potentially below Visa’s 1.5%—to protect their overall compliance. High-risk sectors might feel this squeeze more acutely.
At Durango Merchant Services, we specialize in supporting merchants across risk levels, from CBD and nutraceuticals to standard retail. We’ve seen firsthand how programs like VAMP can disrupt operations, but with proactive monitoring, it’s manageable.
Strategies for Staying Compliant with VAMP
Compliance isn’t about quick fixes—it’s about a holistic approach. Here’s how to get started:
Step 1: Monitor Ratios Granularly
Track VAMP ratios by Merchant ID (MID) to spot issues early. Variations across MIDs can reveal specific pain points.
Step 2: Leverage Prevention Tools
Test RDR, CE3.0, Order Insight, and Verifi CDRN. These can significantly lower counts, but remember, they don’t always block TC40 reports.
Step 3: Enhance Fraud Detection
Implement basics like AVS, CVV, and 3-D Secure 2.0, plus advanced real-time risk scoring. Combine tools for maximum impact without over-relying on one.
Step 4: Prepare for Stricter Mandates
Even if you’re under 1.5%, anticipate acquirer-imposed limits. Experiment with tool combinations to find cost-effective solutions.
Partnering with experts can make all the difference. Chargeback management services—like those integrated with Durango Merchant Services—offer unified access to these tools, MID-level tracking, alerts for nearing thresholds, and data consolidation from multiple processors. Our team can assess your risk, recommend customized strategies, and adjust as your business evolves, helping you avoid fees and maintain smooth operations.
Final Thoughts: Act Now to Safeguard Your Business
Map represents a shift toward tighter fraud and dispute control, but with the right preparation, it’s an opportunity to strengthen your payments ecosystem. Don’t wait for enforcement to bite—assess your current ratios, test prevention methods, and build a resilient plan.
At Durango Merchant Services, we’re here to guide you through VAMP and beyond. Whether you need help integrating dispute tools, monitoring MIDs, or optimizing your merchant account, our experts are ready to assist. Contact us today for a free consultation and let’s ensure your business thrives in this new era of compliance.
