Visa Acquirer Monitoring Program (VAMP) Guide

Written by Dave Galens on August 15, 2025

A Merchant's Guide to the Visa Acquirer Monitoring Program (VAMP)

The payment processing landscape shifted on April 1, 2025, when Visa launched its Acquirer Monitoring Program (VAMP). Businesses across the globe are feeling the impact as payment processors tighten requirements and dispute ratios climb under the new formula.

This guide shows you how to protect your business from account termination, costly fees and processing disruptions. Merchants who master VAMP compliance can negotiate better processing rates, avoid costly fees, and build customer trust through superior fraud prevention.

What VAMP is, and how it's changing things

VAMP replaces two separate monitoring programs (VDMP and VFMP) with one unified system that tracks both fraud reports (TC40s) and customer disputes (TC15s). This consolidation sounds simple, but it creates a dramatically different landscape for merchants.

TC40s are fraud reports that Visa receives directly from card issuers when they identify fraudulent transactions. TC15s are non-fraud disputes stemming from customer dissatisfaction, processing errors or authorization issues.

How VAMP's formula may inflate your dispute ratios

VAMP uses a straightforward formula that presents unique challenges for merchants:

VAMP Ratio = (Monthly TC40s + Monthly TC15s) ÷ Monthly Settled Transactions

This formula creates two key considerations for merchants:

The Double-Counting Effect: When a transaction gets reported as fraud (TC40) and then disputed by the customer (TC15), it counts twice in your VAMP ratio.
The TC40 Expansion: Banks now report fraud on smaller transactions they previously ignored, inflating your fraud numbers.

Real-world impact: A merchant with a 0.3% dispute rate under the old system might suddenly see a 0.8% VAMP ratio, nearly triple their previous number.

Current thresholds that determine your fate

VAMP calculates ratios monthly and applies different thresholds based on your role:

For acquirers:

Above Standard: 0.5% (down from 1% under old programs)
Excessive: 0.7%

For merchants:

Above Standard: 0.9%
Excessive: 1.5%

Special enumeration threshold:

20% for card testing attacks (applies to merchants under 300,000 monthly transactions)

Minimum requirements:

1,000 total disputes (including reason codes 11, 12 and 13)
First-time violators receive a three-month grace period before fees apply

Processors are conducting portfolio reviews, requesting additional documentation and, in some cases, preemptively terminating merchant relationships. The message is clear: clean up your fraud prevention now, or find a new processor later.

The three biggest VAMP threats to your business

These three issues can catch merchants off guard, destroying your payment processing relationship before you realize what's happening.

1. The hidden ratio inflation

VAMP's formula creates artificial inflation in your dispute ratios through mechanisms you can't directly control. TC40 reporting now captures transactions that banks previously couldn't or wouldn't dispute. Examples include small-dollar fraud, international transactions and card-not-present fraud that fell below dispute thresholds.

2. Your acquirer's panic response

Payment processors face their own VAMP compliance pressure. With acquirer thresholds dropping from 1% to 0.5%, processors are scrambling to clean up their merchant portfolios. This creates a domino effect:

Processors set merchant limits well below VAMP thresholds and scrutinize fraud rates more closely.
Account reviews become more frequent and aggressive.
Termination decisions happen faster with less warning.
New merchant approvals become more stringent.

Warning signs your acquirer relationship is deteriorating:

They start requesting additional fraud prevention documentation.
You get surprise account reviews or reserve requirement changes.
They pressure you to implement specific fraud tools or services.
They consistently reach out to discuss your dispute ratios.

3. The cost of non-compliance

VAMP violations carry direct and indirect costs that can devastate your business.

Direct VAMP fees:

$4 per disputed transaction for Above Standard violations
$8 per disputed transaction for Excessive violations
Applied to every single dispute once you exceed thresholds

Indirect costs:

Higher processing rates and fees from nervous acquirers
Reserve requirements or delayed funding
Account termination and the cost of finding new processors
Business disruption during payment system transitions
Lost sales during processing interruptions

Your VAMP defense strategy: 7 things you can do

You don't have to be perfect, but you can build layered defenses that work together to keep your ratios low and your business protected.

1. Calculate your baseline and set up early warning systems

Start by calculating your current VAMP ratio using the data from the past three months.

Set up automated monitoring through your payment processor's reporting tools. Configure alerts when your ratio approaches 75% of the threshold limits. That way, you have time to respond before violations occur.

Monitor card testing attacks if you're a smaller merchant. VAMP includes a separate 20% threshold for "enumeration," when fraudsters test stolen card numbers on your site.

If you process under 300,000 transactions monthly and card testing represents more than 20% of your transaction attempts, you'll face VAMP violations even if your main ratios look good.

2. Deploy core fraud prevention tools

Fraud prevention tools form your first line of defense against VAMP violations, including:

Address Verification Service (AVS)
Security Code Validation (CVV/CVC2/CID)
Velocity Checks
3D Secure 2.0

3. Deploy advanced fraud tools

Basic fraud tools aren't enough under VAMP's stricter requirements. You need advanced systems that prevent disputes before they happen and automatically handle the ones you can't avoid. These include:

Order Insight
Rapid Dispute Resolution (RDR)
Real-time fraud scoring
Device fingerprinting

Focus on solutions that work seamlessly with your existing payment infrastructure and e-commerce platforms.

4. Stop disputes before they start with clear customer communication

Most customer disputes stem from confusion rather than actual fraud. Clear and timely communication prevents disputes better than any fraud tool. These include:

Clear billing descriptors
Proactive notifications
Immediate order confirmations with detailed product descriptions
Shipping notifications with tracking information
Delivery confirmations when packages arrive
Follow-up communications for subscription or recurring charges
Accessible customer service
Transparent return and refund policies, shipping timelines and billing practices.

5. Prepare to win disputes with Compelling Evidence 3.0 (CE3.0) and Order Insight

Pre-dispute, and facilitated through Verifi’s Order Insight solution, merchants who participate in CE3.0 can proactively provide purchase details to issuers in an attempt to deflect a transaction in question from becoming a chargeback.

Moreover, when customers dispute legitimate transactions, CE3.0 lets you prove they're repeat customers with a purchase history. If you can show two previous undisputed transactions from the same customer, Visa shifts liability back to the bank.

Required proof for CE3.0:

Same device fingerprint between the disputed transaction and past purchases
Matching IP addresses showing the customer shops from consistent locations
Identical shipping addresses across multiple orders
User account data that proves an ongoing customer relationship

The 120–365 day rule:

You need two clean transactions from the same customer between 120 and 365 days old. At least two data points must match between the disputed transaction and each of the historical purchases.

Set up automatic evidence collection:

Configure your systems to save device data, IP addresses, shipping details and customer communications for every transaction. You can't fight disputes without this documentation.

Work with your processor:

Ensure your merchant name appears consistently across all transactions so Visa's systems can find your historical data when you need it.

6. Secure your payment processor partnership before it's too late

VAMP puts your processor relationship at risk. Have these conversations now while you're in good standing.

Ask about their VAMP strategy:

What merchant limits are you setting to stay compliant?
How will you support merchants approaching violation levels?
How quickly will you notify me if my ratios spike?

Get specifics about your account:

What's my current VAMP ratio?
Which fraud tools do you recommend for my business?
What happens if I have one bad month due to a fraud attack?

Negotiate protection now:

Request rate reductions for implementing fraud prevention, or get written commitments for support during temporary ratio spikes.

Line up backup options:

Research alternative processors before you need them. Focus on those experienced in your industry and understand their VAMP policies.

7. Establish Monitoring and Response Procedures

Build systems that catch problems before they become violations.

Monitor daily:

Set up automated reports for unusual activity, failed authorizations and customer service complaints that signal coming dispute spikes.

Calculate weekly ratios:

Track your VAMP numbers weekly, not monthly. Create reports showing current ratios, trends and projections based on pending disputes.

Set automatic triggers as you approach danger:

When you hit 75% of the violation threshold, automatically increase fraud screening. At 85%, add temporary transaction limits. At 95%, deploy emergency fraud tools.

Write down your emergency playbook:

Write step-by-step procedures for card testing attacks, compromised payment pages and processor communications during emergencies.

How Inovio protects your business under VAMP

Inovio's payment platform includes everything you need for VAMP compliance:

Real-time VAMP monitoring: Live dashboards track your ratios with early warning alerts at 75%, 85% and 95% of thresholds
All fraud tools integrated: AVS, CVV, 3-D Secure 2.0, and velocity checking - all in one system
Automatic dispute prevention: Order Insight integration and smart customer communication that stops disputes before they happen
Evidence collection: Automatic documentation for Compelling Evidence 3.0 disputes

Case studies that prove Inovio's results

Our clients achieved these results within months of switching to Inovio.

E-commerce retailer

Reduced VAMP ratio from 0.8% to 0.3% in 90 days, avoiding $30,000 in annual fees

Subscription service

Cut VAMP ratio from 1.2% to 0.6%, maintained processor relationship and negotiated better rates

Typical merchant results:

40–60% reduction in VAMP ratios within 90 days
2–5% improvement in approval rates
Complete protection without disrupting customer experience

Why choose Inovio for VAMP protection

One platform handles everything: No need to manage multiple fraud vendors or integrate separate systems.
Always-on protection: Automatic fraud detection and response work around the clock, even when you're not
Expert support: Dedicated fraud specialists help you implement, optimize and respond to threats
Easy setup: Integrates with your existing e-commerce platform without rebuilding your payment system

Your action plan: What to do this week, this month, this quarter

VAMP enforcement starts October 1. Here's your timeline for getting protected before issues escalate.

This week: Know where you stand

Calculate your current VAMP ratio using the past three months of data from your processor.
Audit your fraud tools and identify what's missing (AVS, CVV, velocity checks, etc.).
Call your processor to discuss their VAMP strategy and merchant requirements.
Review recent disputes for patterns you could have prevented.

Next 30 days: Build basic protection

Deploy missing fraud tools immediately, including AVS, CVV verification and velocity checking.
Set up Order Insight and RDR to prevent and auto-handle disputes.
Create VAMP monitoring with weekly ratio tracking and threshold alerts.
Improve customer communication by ensuring clear billing descriptors and providing better order confirmations.
Start evidence collection for Compelling Evidence 3.0 disputes.

Next 60 days: Complete your defense

Evaluate your payment processor for VAMP readiness and support.
Add advanced fraud prevention, including machine learning, device fingerprinting and behavioral analysis.
Research backup processors before you need them.
Document emergency procedures for fraud attacks and ratio spikes.
Test everything before October enforcement begins.

VAMP-proof your business in the next 60 days

VAMP enforcement is coming fast. You can either prepare now and gain an edge over competitors who scramble at the last minute, or wait and risk losing your merchant account entirely.

The window for easy VAMP compliance won't stay open forever, and some merchants are already securing better rates by getting ahead of the rush.

Why Inovio prevents VAMP violations

Inovio integrates all VAMP compliance tools, fraud prevention, real-time monitoring, and dispute management into one platform. You don't have to juggle multiple vendors or wonder if you're covered.

Proven results when regulations change

We have helped merchants navigate major payment industry shifts and come out stronger. Our clients do more than survive new regulations. They secure better processing rates and customer trust while competitors scramble to avoid penalties.

The difference

While other processors leave you to figure out VAMP compliance alone, we build it directly into your payment infrastructure. Your protection starts the moment you process your first transaction.

Get VAMP-ready in 30 days or less

Here's how Inovio gets you VAMP-ready in three simple steps.

Free VAMP assessment (this week)

We'll calculate your current ratios, audit your fraud tools and show you exactly what needs fixing before October enforcement.

Fast implementation (next 30 days)

We handle the technical reporting setup, and connect with your team. We’ll help ensure you can get complete VAMP protection without disrupting your current operations.

Ongoing protection

VAMP ratios change monthly. We monitor your numbers, help you adjust your defenses and keep you safely below violation thresholds as your business grows.

Don't delay! Enforcement begins October 1. Get your free assessment today and join the merchants who are already negotiating better rates with their low VAMP ratios, while others face account reviews.

References

Corporate Visa. (2024, August 30). Introducing the Visa Acquirer Monitoring Program. Visa. Retrieved July 28, 2025, from https://corporate.visa.com/en/sites/visa-perspectives/security-trust/introducing-visa-acquirer-monitoring-program.html

Fabara, P. (2025, 5 15). New security program refresh takes aim at payments fraud. Corporate Visa. https://corporate.visa.com/en/sites/visa-perspectives/security-trust/security-program-takes-aim-payments-fraud.html

Visa. (2023, 3 1). Compelling Evidence 3.0 Merchant Readiness. Visa. https://usa.visa.com/content/dam/VCOM/regional/na/us/support-legal/documents/compelling-evidence-3.0-merchant-readiness-mar2023.pdf

Visa. (2025, 4 1). VAMPexternal fact sheet2025 v2. Visa. Retrieved July 28, 2025, from https://corporate.visa.com/content/dam/VCOM/corporate/visa-perspectives/security-and-trust/documents/visa-acquirer-monitoring-program-fact-sheet-2025.pdf