With the beginning of the new year, the payments industry is already buzzing with anticipation for one of the most significant regulatory shifts on the horizon: the launch of the Visa Acquirer Monitoring Program (VAMP). With just a few months left until its implementation, now is the time to understand what this program entails and how it will impact the way businesses operate.
What is Visa Acquirer Monitoring Program (VAMP)?
The Visa Acquirer Monitoring Program (VAMP), launching on April 1, 2025, is a new system created by Visa to help reduce fraud and enhance risk controls by addressing disputes and enumeration attacks, ultimately safeguarding the payments ecosystem. It sets consistent fraud limits, introduces new ways to stop attacks, and focuses on preventing problems before they happen. It’s all about making payments more secure and straightforward for everyone.
Key features:
- Visa Acquirer Monitoring Program (VAMP) combines existing fraud and dispute management programs into a single, streamlined framework, simplifying processes for acquirers and merchants. Before that, fraud and chargeback management programs were separated.
- It updates the fraud limits for both domestic and cross-border transactions by changing the thresholds and calculation method.
- VAMP introduces criteria to address enumeration attacks by tracking the number of unauthorised attempts to guess card details, helping to combat sophisticated fraud tactics.
- It is a shift from focusing on isolated fraud cases to managing risks throughout the transaction lifecycle, enhancing the overall security of the payment process.
What will change for merchants?
If your business accepts Visa cards, the upcoming changes will directly impact you. Here’s how:
- Stricter fraud and chargeback monitoring: Unified thresholds for fraud and chargeback ratios will replace previous limits. Exceeding these new limits could result in penalties or restrictions for your business.
- Addressing enumeration attacks: Merchants must tackle fraud attempts where unauthorised parties guess card details through repeated transactions. This may require added security measures, such as rate-limiting or enhanced monitoring.
- Simplified dispute management: By consolidating multiple fraud and dispute programs, VAMP will streamline processes, making it easier to resolve disputes quickly and reducing administrative effort.
- Enhanced risk management: Merchants must adopt proactive risk management strategies, which may involve using fraud detection tools, training staff, or upgrading systems to meet Visa’s standards.
Non-compliance with VAMP’s thresholds will lead to fines or increased oversight, while aligning with the program can help reduce fraud losses and improve operational efficiency.
Timeline for VAMP Rollout
2025: Preparations begin in Visa Europe for the updated Visa Acquirer Monitoring Program (VAMP). Acquirers and merchants receive guidelines on the changes.
March 31, 2025: Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) end.
April 1, 2025:
Updated VAMP launches in Visa Europe, with a global rollout to follow.
New metric introduced, focusing on total transaction counts for all disputes, CNP Fraud Count, CNP Non-Fraud Count and Transaction Count.
Shift to risk-based enforcement begins, allowing flexibility based on risk levels.
From April 1 to 30 June 2025: Advisory period. Visa provides support for a smooth transition and won’t be issuing fines during this period.
January 1, 2026: Full global implementation of VAMP updates, with all regions expected to comply with new standards.
How you can prepare for the Visa Acquirer Monitoring Program (VAMP)
Before new program will be in effect, there are few steps that you as a merchant can do to prepare:
- Review your fraud and chargeback ratios: Assess current fraud and chargeback rates against the new VAMP thresholds, focusing on the new VAMP bps. Review merchants’ fraud and chargeback data, their enrollment in Verifi RDR, and how RDR refunds may help deflect CNP fraud.
- Invest in fraud detection tools: Implement advanced tools to monitor and prevent fraud effectively.
- Enhance security measures: Introduce rate-limiting and transaction monitoring to protect against enumeration attacks.
- Educate staff: Train employees on updated fraud prevention strategies and dispute management practices.
- Update systems and processes: Ensure payment systems and operational workflows are compliant with Visa’s new standards.
- Collaborate with acquirers: Communicate with your payment processor to understand specific requirements and get guidance on meeting compliance. This includes implementing certain remediations to reduce the TC40 and TC15 count of a merchant, which will ultimately drive down the merchant’s VAMP bps.
- Conduct a risk audit: Perform a thorough review of current risk management practices and address any gaps before the program takes effect.
With VAMP just around the corner, now’s the time to get your payments in top shape. By upgrading your fraud prevention and chargeback management tools, enhancing security, and aligning with best practices, you’re not just meeting new standards – you’re setting your business up for success. Embrace the changes, stay ahead, and get ready for a safer, smarter payments future!
