As part of Visa’s ongoing efforts to streamline and enhance its monitoring programs, effective as of March 31, 2025, Visa will retire the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP). From April 1, 2025, these programs will be consolidated into an enhanced Visa Acquirer Monitoring Program (VAMP). This new program will incorporate updated metrics and enforcement measures designed to improve fraud and dispute monitoring, impacting how merchants manage their compliance implications.
“In an industry where the only constant is change, staying ahead of fraud trends is not just a necessity, but a competitive advantage.” Al Pascual, Senior Vice President, Javelin Strategy & Research.
Understanding VAMP
VAMP is part of Visa’s compliance program suite, designed to monitor acquirers and their agents who exceed acceptable dispute and fraud thresholds. Non-compliance can result in corrective actions, including penalties, fees, and even the closure of merchant accounts. This regulatory initiative is critical for limiting the risks associated with high chargeback ratios, ensuring that the payment system remains secure and efficient.
Recent Changes to VAMP
1. Program Consolidation
VDMP and VFMP Retirement:
Starting in 2025, both the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP) will be phased out. Effective March 31, 2025, Visa will retire these programs and consolidate them into the enhanced VAMP, which will be introduced on April 1, 2025. This move aims to simplify the monitoring process, particularly for merchants in Europe.
2. New Compliance Criteria
Transaction Count-Based Metric: VAMP will introduce a new transaction count-based metric that combines both fraud and non-fraud (a.k.a service, processing errors, and authorization chargebacks) disputes. This change aims to reduce the complexities associated with maintaining acceptable dispute ratios. If you are an acquirer or a merchant, you know how challenging it is to maintain a proper chargeback management system and keep track of all the card scheme rules, which are often not straightforward.
Enumeration Monitoring: Enumeration, the formal term for attempted payments
submitted to test card account numbers, or credentials., will now be monitored with enhanced criteria based on the Visa Account Attack Intelligence (VAAI) Score system. This system will replace the current static Risk Operations Center (ROC)-blocked transactions, providing more accurate and efficient monitoring.
Enforcement Changes
“Adopting a risk-based approach to fraud management allows organizations to allocate resources more effectively and respond swiftly to emerging threats.” Avivah Litan, Distinguished VP Analyst, Gartner.
Risk-Based Approach:
Starting April 1, 2025, VAMP will adopt a risk-based enforcement strategy. This approach provides flexibility by accommodating varying levels of risk appetite among acquirers offering a more nuanced and adaptive enforcement mechanism. In contrast, the older system operated purely based on a standardized penalty system, regardless of the acquirer’s risk profile. Not ideal to say the least…
Program Thresholds:
The updated framework introduces several changes:
- No “early warning” stage.
- Stricter thresholds for acquirers, with the “Above standard” threshold set to 0.3%, down from 0.9%.
Impact on Merchants
New Thresholds
Merchants will now operate under updated thresholds in the enhanced VAMP. The chargeback ratio will be calculated using both fraud and non-fraud disputes:
- Total Disputes (Reported Fraud + Non-Fraud Disputes) by CPD divided by Total Settled Transactions by CPD
CPD (Central Processing Date): The date Visa receives a transaction.
Updated Thresholds at a Glance:
| Category | Acquirer “Above Standard” Threshold | Acquirer “Excessive” Threshold | Merchant “Excessive” Threshold |
| Initial (April 1, 2025) | Greater than 0.5% | N/A | Greater than 1.5% |
| Subsequent (Jan 1, 2026) | Greater than 0.3% but less than 0.5% | Greater than 0.5% | Greater than 0.9% |
****** As you can see in the above table, there is currently no reference to the merchant ”Standard” threshold in the new thresholds system.
This represents a significant change from the previous system outlined for merchants in VDMP, see below:
Previous VDMP Thresholds:
| Merchant “Standard” Threshold | Merchant “Excessive” Threshold |
| 100 disputes and a 0.9% ratio | 1000 disputes and 1.8% ratio |
Resolved & Refunded Disputes
Disputes that have been resolved or refunded before a chargeback filing are excluded from the ratio calculation. This only applies to disputes managed through Visa’s programs and tools such as CDRN, RDR, and Order Insight with Compelling Evidence E3.0. This is aimed to help offset some of the threshold lowering for acquirers, making the system more “fair”.
Enumeration Ratio Updates
With the new VAMP, Visa will update how they calculate fraud ratios:
- Enumeration Ratio = Confirmed Enumerated Transactions / Settled Transactions by CPD
Enumeration attacks, or card testing where fraudsters try to validate stolen card details with small amounts, will now be under stricter scrutiny! This new threshold aims to pressure acquirers and merchants to curb this type of fraud, which previously didn’t trigger amount-based programs.
According to Visa, these changes are crucial for the overall security of the payment system. They state, “Enumerated transactions impact the entire ecosystem, and with the VAAI Score, we’re giving our clients a sophisticated tool that can help prevent cardholder accounts from being compromised and stop fraudulent transactions before they happen.”
Fines and Enforcement
The updated VAMP will bring changes to how non-compliance is handled, offering more flexibility:
Grace Period:
First-time offenders will get a three-month grace period within a 12-month rolling period.
New Fee Structure:
| Category | Above Standard | Excessive |
| Acquirer | USD 5 per dispute | USD 10 per dispute |
| Merchant | USD 10 per dispute | USD 10 per dispute |
Previous Fee Structure:
| Above Standard | Excessive |
| Month 1 – 4: Workout period, no fees | Month 1 – 6: 50 USD per dispute |
| Month 5 – 9: 50 USD per dispute | Month 7 – 11: 50 USD per dispute, 25,000 USD acquirer review fee |
| Month 10+: 50 USD per dispute, 25,000 USD acquirer review fee, Possible disqualification | Month 12+: 50 USD per dispute, 25,000 USD acquirer review fee, Possible disqualification |
Technical Tweaks in VAMP
With the consolidation of VDMP and VFMP into VAMP and the new threshold calculations, Visa will update its technical systems.
“The shift towards consolidated and more predictive fraud management systems is crucial for maintaining trust in digital transactions.” Karen Webster, CEO, PYMNTS.com
OneERS Platform:
Starting April 1, 2025, merchants will have access to OneERS, a new platform based on Microsoft Dynamics. This will provide a performance dashboard, remediation information, alerts, and training materials. There will be a 90-day grace period to help everyone get up to speed.
Visa Account Attack Intelligence (VAAI) Score System:
This new AI-based system will replace the old static Risk Operations Center (ROC)-blocked transactions. It promises to cut down on false positives by 85% and improve fraud detection.
Conclusion
The upcoming changes to VAMP reflect a comprehensive approach to maintaining a secure and efficient payment system. By consolidating existing programs, introducing new metrics, and implementing a flexible, risk-based enforcement strategy, Visa aims to enhance fraud and dispute monitoring. Merchants should prepare for these changes by understanding the new compliance criteria and leveraging the OneERS platform for better performance management. These changes not only aim to secure the payment ecosystem but also provide merchants with the tools needed to maintain compliance and reduce the risk of fraud and disputes.
Overall, while the new rules might seem a bit daunting at first, they’re designed to make the payment process smoother and safer for everyone involved. So, gear up, get familiar with the new metrics, and take advantage of the tools Visa is providing to stay ahead of the game.
This article was contributed by Ben Herut, Director of Risk at Chargeflow