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.
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.
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:
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.
VAMP calculates ratios monthly and applies different thresholds based on your role:
For acquirers:
For merchants:
Special enumeration threshold:
Minimum requirements:
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.
These three issues can catch merchants off guard, destroying your payment processing relationship before you realize what's happening.
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.
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:
Warning signs your acquirer relationship is deteriorating:
VAMP violations carry direct and indirect costs that can devastate your business.
Direct VAMP fees:
Indirect costs:
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.
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.
Fraud prevention tools form your first line of defense against VAMP violations, including:
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:
Focus on solutions that work seamlessly with your existing payment infrastructure and e-commerce platforms.
Most customer disputes stem from confusion rather than actual fraud. Clear and timely communication prevents disputes better than any fraud tool. These include:
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.
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.
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.
Ensure your merchant name appears consistently across all transactions so Visa's systems can find your historical data when you need it.
VAMP puts your processor relationship at risk. Have these conversations now while you're in good standing.
Request rate reductions for implementing fraud prevention, or get written commitments for support during temporary ratio spikes.
Research alternative processors before you need them. Focus on those experienced in your industry and understand their VAMP policies.
Build systems that catch problems before they become violations.
Set up automated reports for unusual activity, failed authorizations and customer service complaints that signal coming dispute spikes.
Track your VAMP numbers weekly, not monthly. Create reports showing current ratios, trends and projections based on pending disputes.
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 step-by-step procedures for card testing attacks, compromised payment pages and processor communications during emergencies.
Inovio's payment platform includes everything you need for VAMP compliance:
Our clients achieved these results within months of switching to Inovio.
Reduced VAMP ratio from 0.8% to 0.3% in 90 days, avoiding $30,000 in annual fees
Cut VAMP ratio from 1.2% to 0.6%, maintained processor relationship and negotiated better rates
VAMP enforcement starts October 1. Here's your timeline for getting protected before issues escalate.
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.
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.
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.
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.
Here's how Inovio gets you VAMP-ready in three simple steps.
We'll calculate your current ratios, audit your fraud tools and show you exactly what needs fixing before October enforcement.
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.
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