Fraud, disputes, and card testing attacks lead to billions of dollars in annual losses for modern merchants.
To protect everyone involved in the payment process, Visa is introducing VAMP, an innovative system of controls and procedures.
VAMP provides merchants and acquirers with guidelines to help reduce costly issues and improve transaction security. As a result, the entire payment experience can become safer and straightforward.
The newly updated VAMP, which went into effect on April 1, 2025, combines five fraud and dispute programs into a single entity, while coalescing 38 remediation processes into one unit.
It also enhances the security of global payments with better-aligned fraud thresholds for domestic and cross-border card-not-present transactions.
Moreover, VAMP includes updated enumeration criteria to guard against specific types of card attacks. Finally, VAMP has been changed to incorporate a life cycle management effort, leading to a more comprehensive approach to managing risks over the long term.
The implementation of Visa's Acquirer Monitoring Program (VAMP) introduces new standards for merchant oversight. To ensure compliance and maintain operational integrity, businesses must strategically address the program's key focus areas.
A proactive approach is essential for mitigating risks associated with fraud, chargebacks, and security vulnerabilities.
The foundational step in preparing for VAMP is to reinforce security measures to reduce the impact of fraud and potential data breaches. Implementing a multi-layered security strategy is critical.
Key recommended measures include the consistent use of:
For enhanced protection, businesses should consider using fraud management tools.
Furthermore, it is advisable to implement tools such as pre-authorization fraud software and velocity checks on payment gateway connections to mitigate card-testing attacks. Security can be further fortified by integrating multi-factor authentication and login barriers, such as CAPTCHA, to prevent unauthorized system access.
Chargebacks represent a significant operational and financial challenge for merchants. VAMP aims to minimize their occurrence, making it imperative for businesses to review their current chargeback rates.
If these figures approach or exceed VAMP thresholds, engaging a service provider to enroll in all available mitigation programs is strongly recommended.
Visa's Rapid Dispute Resolution (RDR) and Cardholder Dispute Resolution (CDR) programs are currently designed to intercept and resolve disputes before they escalate to formal chargebacks, thereby helping to maintain compliant VAMP ratios.
Merchants are responsible for the timely settlement of legitimate disputes and the issuance of refunds. Properly resolving a transaction allows the associated chargeback to be removed from the VAMP ratio calculation.
One of the most effective strategies for reducing chargebacks is to optimize the customer experience. This begins with clear and transparent communication at every touchpoint.
Ensure that billing descriptors are accurate and easily recognizable. New customers should receive detailed information regarding pricing, subscription terms, product specifications, account setup, and communication protocols.
Merchants can also leverage automated tools. Order Insight, developed by Visa-owned Verifi, enables merchants to share rich transaction details directly with the issuer when a customer questions a charge. By providing this data in real-time, merchants can often resolve the dispute before a formal chargeback is initiated.
Finally, actively soliciting customer feedback can help you identify and rectify core service issues that, if left unaddressed, could lead to future chargebacks.
Despite the best preventative measures, some chargebacks are inevitable.
When a dispute occurs, it is essential to look beyond the transaction itself and analyze the underlying reason for the customer's complaint. Understanding the root cause is the key to gathering actionable insights and reducing future incidents.
A deep dive into your chargeback patterns can reveal specific weaknesses. Are disputes frequently linked to subscription renewals, a particular product, or unclear shipping timelines? Do they often occur after a customer service interaction?
By investigating the circumstances of each dispute, you can identify trends and implement targeted, corrective actions to improve your customer experience and prevent future losses.
Final preparation involves adopting a holistic view of company data that extends beyond transactional information. Incorporate data from various parts of your business such as your point of sale system, affiliate marketing platforms, and more to identify alternative fraud vectors.
A well-consolidated and organized data set enables the identification of patterns and trends, providing the solid foundation required to implement meaningful and effective improvements.
By adhering to the robust processes and controls outlined by VAMP, merchants can effectively protect their business from security breaches and dispute-related financial losses.
Prompt and thorough adoption of these guidelines will not only ensure compliance but also foster greater customer trust and long-term business stability.