Navigating the Evolving Landscape: Why Global Merchants Need to Keep Up with Card Scheme Updates

Why it's essential for global merchants to stay updated on card scheme updates

The role of card schemes to ensure secure and seamless payment experiences is undeniable. Card schemes like Visa and Mastercard play an important part in ensuring a global business environment that inspires trust. Even more so as customer expectations and payment preferences continually evolve. Every party in the global commerce ecosystem from merchants, payment providers, gateways and card schemes are constantly adapting to evolving consumer needs.

1. Global business compliance

In today’s interconnected global markets, particularly for businesses that operate across multiple markets, regulatory compliance is not just legal obligation, but a strategic imperative. As governments and regulatory bodies worldwide continue to tighten their oversight on financial transactions, consumer privacy, and cross-border operations, those that fail to stay compliant can risk heavy penalties.

For global businesses, compliance isn’t a one-time effort; it demands continuous monitoring of regulatory updates across markets and proactive adaptation to changing standards. From card scheme regulations to anti-money laundering laws, these rules are designed to ensure fairness, security, and accountability in the global economy.

Businesses that prioritise compliance not only protect themselves from legal risks but also gain a competitive edge by fostering trust with their partners and customers. In a world where non-compliance can mean millions in fines or operational disruptions, forward-thinking risk management isn’t just about avoiding pitfalls – it’s about building resilience and driving sustainable growth.

2. Lower fraud rate and chargeback rate

Managing fraud rates and chargeback rates is critical for maintaining profitability and customer trust in a global marketplace. For international brands, adhering to card scheme rules and frameworks provides an effective approach to mitigating these risks. Card schemes, such as Visa’s Fraud Monitoring Program (VFMP) and Mastercard’s Excessive Chargeback Program (ECP), serve as proactive measures to monitor and reduce fraudulent activities and excessive chargebacks across payment networks.

These programmes establish thresholds that merchants must stay within to avoid penalties, while also offering guidance to improve transaction security and dispute resolution processes. Compliance with these frameworks ensures businesses are leveraging best practices, such as enhanced verification tools, dispute management protocols, and fraud monitoring systems, which protect both the merchant and the consumer.

By aligning with card scheme requirements, merchants not only reduce financial losses but also sustain operational efficiency, foster trust with issuers and payment partners, and improve their overall reputation in the market. Ignoring these rules can result in fines, getting blacklisted, payment processing restrictions, or even removal from the payment ecosystem, making adherence vital for long-term success and scalability.

3. Business reliability and reputation

Maintaining brand reputation and brand trust is key, especially for global brands operating in the dynamic and highly regulated fintech industry. Abiding with card scheme rules and frameworks is not just a legal obligation, but an effective strategy to safeguard and enhance brand reputation. These rules and frameworks are designed to ensure the highest standards of security, transparency, and consumer protection, which are fundamental to building and maintaining trust with customers.

For instance, the Payment Card Industry Data Security Standard (PCI DSS) sets stringent requirements for handling cardholder data, thereby reducing the risk of data breaches and associated reputational damage.

In recent years, card schemes have also introduced updates aimed at enhancing transaction security and reducing fraud.

In effect: Visa Acquirer Monitoring Programme

So, what’s ahead for the global business community? Among upcoming updates, one of the most important ones is the new Visa Acquirer Monitoring Programme (VAMP) which has come into effect from 1 April 2025. The new VAMP replaces the existing Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP), and impacts both acquirers and merchants.

The programme introduces 2 important metrics:

• VAMP ratio which measures fraudulent and disputed transactions against total settled transactions. VAMP ratio is applicable to Card Not Present transactions and is calculated monthly.

VAMP ratio = (Monthly number of transactions reported as fraud + number of non-fraud disputes) / Monthly number of settled transactions

• Enumeration ratio which is used to identify and track card testing attempts or enumeration attacks.

Enumeration ratio = Confirmed number of enumerated transactions / Total number of settled transactions

Merchant VAMP thresholds triggering enforcement actions

From 1 April, merchants need to ensure their VAMP ratio is less than 1.5% and enumeration ratio is less than 20%. VAMP will have a six-month advisory period before full enforcement beginning 1 October 2025 and more stringent thresholds taking effect from 1 January 2026. Exceeding these thresholds will lead to enforcement actions from Visa including fines and termination of merchant accounts.

According to Visa, a three-month grace period will be granted to first-time offenders for a rolling 12-month period. After which, merchants will be fined 10 USD per fraudulent or disputed transaction above the VAMP ratio.

This new programme aims to simplify monitoring while providing a more comprehensive view of fraud and chargeback activity – further creating a conducive commerce environment for both businesses and consumers. What this means for merchants is that they may need to look into optimizing their current risk management strategies, including 3D Secure, to take into consideration dispute cases. Besides risk management optimisation, merchants can also consider further aligning with card scheme recommendations by using available dispute and chargeback solutions offered by payment providers and card schemes.

The risk management approach should focus on helping merchants effectively guard against fraud to ensure secure transactions and business continuity. In doing so, merchants can abide with global regulation requirements and card scheme updates, as well as provide a better experience for their customers.

Learn more about card scheme updates, VAMP and proactive fraud prevention with Antom.

About the Author

Leo Li is a Senior Risk Management Strategist at Antom, Ant International. He leads the Global Risk Management team and works closely with international and local businesses in Asia, Europe and the US, across verticals including E-commerce, Travel, Mobility, Digital & Entertainment and New Energy.

About Antom

Ant International's Antom is the leading payment and digitisation services provider for merchants around the world. Serving a myriad of verticals including E-commerce, Digital & Entertainment, Travel, Hospitality and Logistics, Antom is trusted by businesses of all sizes – from global top brands, including Agoda, Air Asia, Delivery Hero and Shopify, to small- and medium-size businesses across international markets.

Antom supports merchants in over 50 countries and regions, enabling them to connect with consumers in more than 200 markets, with the flexibility to accept payments in more than 100 currencies. Beyond payments, it provides digital marketing solutions, risk management and merchant digitisation services to help merchant streamline operations and enhance customer engagement. Learn more at https://www.antom.com/