In an ever-evolving payments landscape, fraud prevention remains a top priority for payment networks, acquirers, and merchants. Visa has introduced the Visa Acquirer Monitoring Program (VAMP) to enhance fraud oversight and reduce excessive chargebacks. The program aims to protect consumers while ensuring acquirers and merchants maintain compliance with Visa’s risk management framework.
What is the Visa Acquirer Monitoring Program (VAMP)?
VAMP is Visa’s latest initiative designed to monitor and manage fraud at the acquirer level. Unlike previous monitoring programs that focused primarily on merchants, VAMP holds acquirers accountable for high fraud rates. By combining the fraud and dispute threshold, and introducing new enforcement measures, Visa aims to encourage acquirers to proactively manage their merchants' risk profiles, and to take corrective action where necessary.
Primary Goals of VAMP
- Enhancing fraud oversight – Visa is shifting focus to acquirers to strengthen fraud prevention efforts across the payment’s ecosystem.
- Reducing excessive fraud rates – By enforcing new thresholds, VAMP incentivises acquirers to take proactive steps in managing fraud risks among their merchants.
- Encouraging a risk-based approach – Acquirers and merchants are encouraged to adopt fraud mitigation strategies that align with best practices in risk management.
As Aaran Jackson, our Risk and Acquirer Relationship Manager, states: “Over the past decade, the thresholds within which merchants must adhere, have gotten stricter. VAMP is a continuation of that trend. This will likely impact membership merchants, and merchants with trial periods most of all.”
What Will Change for Merchants?
For merchants, VAMP represents a shift in how fraud is monitored and addressed. While merchants are still expected to maintain compliance with fraud prevention measures, acquirers will now face increased scrutiny. As a result, merchants operating with high fraud or chargeback rates may experience;
- More stringent oversight from their acquirers
- The need to implement stronger fraud prevention tools
- Potential termination of their merchant accounts if deemed too risky
What is Changing with VAMP?
The most significant changes under VAMP include:
- A shift in responsibility towards acquirers to ensure their merchants portfolios maintain acceptable fraud levels
- The introduction of new fraud thresholds, with stricter enforcement set to roll out over time.
- Increased penalties for acquirers that consistently exceed fraud limits.
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 (January 2026) | Greater than 0.4% but less than 0.5% | Greater than 0.5% | Greater than 0.9% |
Note: There is currently no reference to the merchant “Standard” threshold in the new threshold system. This means that while acquirers will face new enforcement measures, merchants exceeding the “Excessive” threshold may also see more direct intervention from their acquiring banks
Timeline for VAMP Rollout
Visa has provided a phased timeline for the implementation of VAMP:
- April 1, 2025 - Initial fraud thresholds take effect.
- January 1, 2026 - stricter fraud thresholds are introduced, further reducing acceptable fraud rates.
Which Transactions Qualify for VAMP?
Visa will monitor all transactions processed through acquiring banks to determine fraud rates. The program focuses on:
- Card-not-present (CNP) transactions - given their higher fraud risk.
- Chargeback-prone transactions - To identify merchants with frequent disputes
- High-risk industry segments - Such as adult entertainment, gaming and high ticket sales.
How Can Merchants Prepare for VAMP?
With the introduction of VAMP, merchants should take proactive steps to avoid exceeding fraud thresholds. Key actions include:
- Strengthening Fraud Prevention Tools
Merchants should implement fraud detection tools such as:
- 3D Secure authentication as part of a 2 Factor Authentication program
- AI-Driven fraud monitoring
- Monitoring Chargeback Ratios
Regularly reviewing chargeback trends and addressing disputes promptly can help reduce chargeback rates and maintain compliance.
- Enhancing Customer Verification
Ensuring accurate customer data collection and verifying customer identities can prevent fraudulent transactions.
- Engaging with Acquirers
Maintaining open communication with acquirers to address potential issues before they escalate can help merchants avoid compliance risks.
Enforcement Changes Under VAMP
Visa will enforce stricter compliance measures for acquirers that consistently exceed fraud limits. Acquirers failing to manage their merchant portfolios effectively may face:
- Increased fines and penalties
- Mandatory fraud reduction plans
- Restrictions on onboarding new high-risk merchants
For merchants, acquirers will be under pressure to take corrective action, which could result in account terminations or increased scrutiny for those with persistent fraud issues.
VAMP marks a significant shift in how Visa addresses fraud and disputes within the payments ecosystem. By shifting responsibility towards acquirers, Visa aims to create a safer environment for transactions, while encouraging all parties to adopt better fraud prevention practices. Merchants must proactively implement robust fraud management strategies to stay compliant and avoid disruptions to their payment processes.
Axcess Merchant Services is here to help merchants navigate the changes introduced by VAMP. By implementing robust fraud prevention tools and adopting best practices such as delayed capture, merchants can better manage risk and maintain compliance. Our team is available to provide guidance and support in ensuring your payment processes align with evolving regulations.
