The Visa Acquirer Monitoring Program (VAMP): Key Changes that Await Us
Struggle to understand what changes the new VAMP will bring?
Explore this article to figure it out.
The digital payments landscape is on the cusp of significant change as Visa introduces its upgraded Acquirer Monitoring Program (VAMP). This next-generation framework integrates the previously separate fraud and dispute monitoring systems into a unified, streamlined approach aimed at enhancing security and reducing transaction risks. With cutting-edge tools like AI-powered fraud detection, newly defined performance thresholds, and a flexible compliance structure, VAMP sets a new standard for acquirers and merchants to manage risks effectively. Understanding these updates is not just a priority — it’s essential for navigating the evolving demands of a safer and more accountable payment ecosystem. So, let’s try to figure out what VAMP is and how it works together.
VDMP and VFMP: Predecessors and Key Components of VAMP
The Visa Acquirer Monitoring Program (VAMP) integrates two pivotal systems: the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP). Together, these frameworks address disputes and fraud, ensuring compliance with Visa's monitoring standards while safeguarding the integrity of the payment system.
Visa Dispute Monitoring Program (VDMP)
VDMP is designed to help merchants manage disputes effectively, maintain customer trust, and minimize reputational damage. Merchants are flagged for review if their dispute ratios exceed defined thresholds, prompting them to adopt corrective measures:
Visa Fraud Monitoring Program (VFMP)
VFMP focuses on reducing fraudulent activities by monitoring fraud-to-sales ratios. This program uses financial thresholds to identify merchants with elevated fraud risks:
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Standard program
Applicable to merchants with 100 or more chargebacks and a dispute ratio of 0.9% or higher. At this stage, merchants are encouraged to improve customer service and implement dispute resolution plans to avoid escalation. -
Excessive program
Applies to those with 1,000 or more chargebacks and a dispute ratio of 1.8% or higher. Merchants in this category face significant penalties, emphasizing the need for stronger dispute management strategies.
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Standard program
Targets merchants with $75,000 or more in fraud volume and a fraud-to-sales ratio of 0.9%. Proactive fraud detection measures are vital to staying below this level. -
Excessive program
Reserved for merchants with $250,000 or more in fraud volume and a fraud-to-sales ratio of 0.9%. Breaching this threshold can result in penalties and potential loss of processing privileges, making effective fraud prevention critical.
Both programs aim to maintain a secure payment environment, encouraging merchants to adopt robust systems for managing disputes and fraud effectively. Through monitoring and remediation plans, Visa fosters compliance and trust across its payment network.
Integrating VDMP and VFMP into VAMP
Visa’s decision to merge the Dispute Monitoring Program (VDMP) and the Fraud Monitoring Program (VFMP) under the broader Visa Acquirer Monitoring Program (VAMP) marks a significant step towards simplifying compliance and strengthening payment security. By unifying these systems, Visa provides a centralized solution for tracking and managing both disputes and fraudulent activities, fostering a more secure and efficient transaction environment. This approach requires acquirers and merchants to meet specific performance criteria and emphasizes shared responsibility for compliance.
VAMP Thresholds
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Disputes in card-not-present transactions
The threshold is set at 750 disputes with a dispute-to-sales ratio capped at 1%. -
Fraud in card-not-present transactions
A threshold of $500,000 in fraud value with a fraud-to-sales ratio of 1%.
To exit the VAMP program, businesses must consistently perform below these benchmarks for three consecutive months. However, any penalties and compliance status remain fixed at the highest threshold previously breached until full resolution is achieved. This comprehensive approach underscores the importance of adopting advanced monitoring tools and proactive measures to maintain compliance and protect the integrity of the payment network.
Key Features and Updates
Visa has made some significant changes to its monitoring program, which will surely have an impact on certain workflows of your business. So, let's take a brief look at these changes and what they actually mean for you.
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Threshold adjustments
New thresholds will be implemented to better measure and control fraud and disputes. The program introduces the "VAMP Ratio," which combines fraud and non-fraud disputes into a single metric, offering a clearer view of risk management. Transactions flagged under specific tools like Rapid Dispute Resolution (RDR) and Compelling Evidence 3.0 will be excluded from ratio calculations. -
Emphasis on enumeration attacks
Enumeration transactions, often linked to testing stolen card details, will now be monitored under stricter criteria. This aims to enhance fraud prevention by identifying unauthorized transactions more effectively. -
New tools and metrics
Visa is introducing the Visa Account Attack Intelligence (VAAI) score, an AI-driven system for identifying fraudulent activity while minimizing false positives. Additionally, the "OneERS" platform will provide dashboards and insights to help acquirers and merchants monitor and manage performance. -
Enforcement changes
A more flexible, risk-based approach will replace the earlier penalty-focused system. Merchants exceeding thresholds for the first time in 12 months will get a three-month grace period to comply. -
New fee structures
Dispute and fraud-related fees will now vary based on threshold breaches, with a focus on encouraging compliance rather than punitive penalties.
These are the main features that distinguish the new VAMP program. There are few, yet they are still pretty significant when it comes to payment processing.
Implications for Merchants and Acquirers
So, what do these changes mean for merchants and acquirers? Does anything change at all? Well, it does.
- Merchants must adopt robust fraud prevention strategies, such as using advanced tools (like Verifi) and maintaining clear refund and cancellation policies.
- Acquirers will face increased responsibility for monitoring and remediating fraud within their portfolios, with Visa actively engaging to assist through performance reviews and plans.
These updates aim to create a safer payment ecosystem while giving stakeholders the tools to adapt effectively. Preparing for these changes involves adopting advanced monitoring systems, fraud prevention measures, and thorough record-keeping.
Conclusion
Visa's new Acquirer Monitoring Program (VAMP), launching in 2025, merges the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP) into one unified system. This change introduces updated compliance thresholds that require both acquirers and merchants to manage fraud and disputes more effectively. By adapting to these updates, companies can help ensure a more secure and efficient payment environment.
