What is VAMP and why it replaces Visa’s previous VDMP and VFMP;
How the changes affect merchants in different verticals;
What’s confirmed, what’s changed, and what’s still ambiguous;
How to calculate and monitor your VAMP rates;
Best practices to avoid penalties under the new rules;
How AI and automation can support merchants in adapting to industry changes.
As the payment ecosystem is rapidly evolving, the complexity of players involved in the process, as well as the technological advancements in payment methods have led to the rise of fraud, disputes, and card testing. Visa and other players in the industry have a shared goal to help protect ecosystem participants – from acquirers to issuers, merchants, and consumers – from fraudulent activities.
Visa has consolidated six separate monitoring programmes into the single, streamlined, new VAMP.
The consolidated VAMP eliminates the operational burden of managing multiple programmes while maintaining effective oversight of the payment ecosystem’s health. VAMP goals include prioritising reduction of consumer friction, a streamlined and efficient delivery, flexibility for changing business models, and greater impact on fraud prevention.
The new VAMP ratio calculation includes:
Numerator: TC40s (fraud reports) + TC15s (all disputes, including fraud disputes)
Denominator: Settled transactions (TC05s)
Focus: Transaction count rather than dollar amounts, prioritizing customer experience
The programme operates on a tiered system:
Green Zone: Standard performance (no action required)
Blue Zone: Early warning (monitoring only)
Yellow Zone: Above standard (50-70 basis points for acquirers)
Orange Zone: Excessive (70+ basis points for acquirers, 220+ basis points for merchants)
Effective as of 1 April 2025, Visa has extended its advisory period for VAMP until 30 September 2025, allowing clients and their partners enough time to implement the proper controls and comply with the programme. On 1 October 2025, enforcement of the new VAMP will begin only for excessive levels. On 1 January 2026, enforcement of the new VAMP will be extended to Acquirers with above standard performance. Starting 1 April 2026, VAMP Merchant Excessive thresholds will move from 220 to 150 basis points in most regions (excluding EMEA).
During the advisory period, merchants are encouraged to take the following immediate steps:
Ratio monitoring: Obtain current VAMP ratios from their Acquirers and establish ongoing monitoring;
Acquirer communication: understand acquirer-level implications and potential pass-through policies;
Chargeback and fraud analysis: identify root causes of disputes and fraud to implement preventive measures;
Tool evaluation: assess pre-dispute tools and Compelling Evidence 3.0 for ratio optimisation.
By remaining compliant with the new VAMP programme, merchants will benefit from improved authorisation rates and enhanced operational efficiency.
According to Visa data, lower-risk portfolios achieve 10% higher approval rates from issuers, directly impacting revenue growth and customer experience.
At the same time, reduced fraud and dispute rates lead to decreased manual review requirements, lower operational costs, improved resource allocation, and enhanced customer loyalty and trust.
To encourage adoption, pre-dispute products that reduce customer friction will be excluded from dispute calculation Moreover, Compelling Evidence 3.0 wins will be excluded from fraud calculations, incentivising proper dispute representation.
The webinar also included a practical case study showing how a merchant with USD 150 average sale value would navigate the transition from legacy programmes to VAMP. Key findings included that most merchants would see increased ratios due to the inclusion of fraud disputes and that the effective use of pre-dispute tools could significantly improve compliance positioning. At the same time, merchants below minimum thresholds (1,500 VAM count) would remain unaffected in this case study.
VAMP reflects the payment industry’s evolution from traditional card-present transactions to diverse digital payment models, including ecommerce growth, social media payments, gaming transactions, and real-time payment acceleration.
The VAMP programme represents Visa's commitment to balancing the ecosystem protection with operational efficiency. Merchants should use the advisory period to:
Establish robust data collection and monitoring processes;
Engage proactively with acquirers and PSPs;
Implement or optimise fraud prevention and dispute resolution tools;
Develop contingency plans for threshold management.
Success in the VAMP environment requires a holistic approach combining technology, process optimisation, and strategic partnerships. Merchants who proactively address these requirements will not only ensure compliance but also boost authorisation rates, operational efficiency, and customer satisfaction.
For detailed programme specifications and ongoing updates, merchants should consult the official Visa fact sheet and maintain regular communication with their acquiring partners.
Irina is a Senior Editor at The Paypers, primarily specialising in online payments and fraud prevention. She has a Ph.D. in Economics and a strong economic academic background, with interests in fraud prevention, chargebacks, fintech, ecommerce, and online payments. Reach out to her via LinkedIn or email at irina@thepaypers.com.
Justt is dedicated to helping online merchants navigate the complex and costly system for credit card disputes. The company’s smart technology and in-house expertise successfully resolve chargebacks for merchants, automatically reuniting them with their revenue. Justt’s proprietary AI pulls the best evidence to build merchants’ most compelling defence.
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