Key Components
VAMP Ratio Calculation:The program uses a unified metric: (TC40 Fraud Alerts + TC15 Non-Fraud Disputes) ÷ Total Settled CNP Transactions. Notably, fraudulent transactions that become disputes are double-counted, appearing in both TC40 and TC15 categories.
Threshold Levels:
- Merchants: Face "Excessive" classification at 2.2% globally (1.5% in Latin America/Caribbean), dropping to 1.5% globally by April 2026
- Acquirers: Two tiers - "Above Standard" (0.5-0.7%) and "Excessive" (≥0.7%), tightening to 0.3-0.5% and ≥0.5% respectively by January 2026
- Minimum Volume: 1,500 combined fraud and dispute transactions monthly for evaluation
Financial Penalties:
- Merchants in "Excessive" category: $10 per fraudulent or disputed transaction
- Acquirers: $5 per transaction at "Above Standard" level, $10 at "Excessive" level
- Penalties calculated and assessed monthly
Impact on Subscription Businesses
VAMP particularly affects subscription and recurring billing models due to:
- Count-based metrics treating all transactions equally regardless of value (a $1.99 trial affects ratios the same as a $59.99 annual subscription)
- Common dispute triggers including forgotten subscriptions, unclear billing descriptors, and free trial abuse
- Elimination of RDR protection for TC40 fraud alerts, removing a key compliance tool previously used by subscription businesses
- Higher baseline dispute rates with SaaS businesses averaging 0.66% chargeback-to-transaction ratios
High-Risk Merchant Considerations
Businesses in high-risk categories (adult entertainment, gambling, cryptocurrency, CBD/cannabis, travel, telemarketing) face:
- Stricter acquirer-imposed limits typically 0.5-0.7% despite identical Visa thresholds
- Enhanced requirements including mandatory registration for gaming merchants (MCC 7994/7995) with annual fees of €480-950
- Operational constraints such as 10-20% reserve requirements and 2-5% higher processing fees
- Limited processor options creating vulnerability if accounts are terminated for VAMP violations
Compliance Strategies
Prevention Technologies:
- 3D Secure 2.0 authentication (reduces fraud by up to 70%)
- Real-time fraud detection with machine learning
- Device fingerprinting and behavioral biometrics
- Velocity checks and enumeration attack prevention
Chargeback Management:
- Prevention alert services (Verifi/Ethoca) for pre-dispute intervention
- Compelling Evidence 3.0 for fraud liability shift
- Clear billing descriptors following "BRANDNAME*Product/Service" format
- Pre-billing notifications 7-10 days before charging
Customer Service Excellence:
- 24/7 support channels with sub-24-hour response times
- Empowered front-line staff with refund authority
- Transparent cancellation processes
- Proactive communication about subscription changes
Exit Requirements
Unlike legacy programs, VAMP has no specified minimum holding period for exit. Cases close automatically once performance returns below excessive thresholds. However, failed remediation after 6-12 months can result in:
- Merchant account termination
- Addition to MATCH/TMF list for 5 years
- Severely limited future processing options
Program Evolution
VAMP replaced five separate Visa programs (VDMP, VFMP, VFMP-3DS, VAMP-Enumeration, and VABRP) with key changes including:
- March 2025: TC40 fraud alerts resolved through RDR now count toward ratios
- May 2025: Introduction of double-counting methodology for fraud-related disputes
- April 2026: Further threshold reductions scheduled for most regions
Related Terms
- TC40: Visa's fraud alert system for reporting confirmed fraudulent transactions
- TC15: Visa's non-fraud dispute reporting system
- Rapid Dispute Resolution (RDR): Automated refund system for preventing chargebacks
- Enumeration Attack: Systematic card testing to validate stolen payment credentials
- MATCH List: Terminated Merchant File preventing future payment processing
Sources
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