Stricter VAMP Ratio Thresholds Are Now in Effect. Here's How to Stay Compliant
April 1, 2026 marks an important shift for merchants with high rates of fraud or customer disputes. The updated thresholds under the Visa Acquirer Monitoring Program (VAMP) are now in force, lowering the tolerance for excessive fraud and dispute activity across the network.
The most important change for merchants is the reduction of the "excessive" VAMP ratio threshold from 2.2% to 1.5%. That adjustment narrows the margin for error and increases the likelihood that more businesses will fall into enforcement categories if their current practices remain unchanged.
This change arrives alongside earlier pressure on acquirers, whose own thresholds tightened at the start of the year. As a result, merchants are now operating in an environment where both Visa and their acquiring partners are paying closer attention to performance metrics.
Understanding how VAMP works and how to reduce exposure is now even more essential. Maintaining compliance requires a deliberate approach that prioritizes prevention, visibility, and ongoing adjustment.
Quick Refresher: What Is VAMP?
The Visa Acquirer Monitoring Program consolidates two previous systems: the Visa Dispute Monitoring Program (VDMP), which tracked chargebacks, and the Visa Fraud Monitoring Program (VFMP), which tracked fraudulent transactions. By combining these into a single framework, Visa created a unified method for evaluating merchant risk.
At the center of this system is the VAMP ratio, calculated as the sum of reported fraudulent transactions and total disputes divided by total settled transactions. Only card-not-present transactions are included. Fraud is measured using TC40 reports submitted by issuers, while Visa tracks disputes under the label of TC15.
Enrollment in VAMP begins when a merchant or acquirer's VAMP ratio exceeds Visa's stated limits. For merchants, that limit changed from 2.2% to 1.5% on April 1. Acquirers face two thresholds: the "excessive" threshold of 0.7% and the "above standard" threshold of 0.5%. Visa began enforcing the latter on January 1.
First-time violations within a rolling twelve-month period qualify for a three-month grace period during which enrollment will be delayed. After that window, a merchant or acquirer that continues to exceed the threshold will be enrolled in the monitoring program. Merchants enrolled in VAMP are assessed a fee of $8 per fraudulent or disputed transaction.
How to Stay Compliant with the New VAMP Thresholds
Maintaining compliance under VAMP requires a more coordinated approach to managing both disputes and fraud. The most reliable way to stay within acceptable limits is to reduce the volume of disputes entering the system while ensuring that many of those that do arise are resolved before a chargeback is filed. A combination of real-time tools, fraud controls, and operational improvements can help merchants manage both sides of that equation and keep ratios under control.
VAMP Ratio Monitoring
Consistent monitoring of VAMP ratios is essential for maintaining compliance. Visibility at the merchant ID level is particularly valuable for organizations managing multiple business units or sales channels.
Effective monitoring relies on integrating multiple data sources, including TC40 fraud reports that may not be tied to a chargeback at all. When the transaction amount is small, the issuing bank may credit the customer directly rather than processing a chargeback. Merchants that don't track TC40 data may have no visibility into how these smaller transactions are contributing to VAMP ratios.
Real-time tracking enables early alerts when performance approaches defined thresholds. This allows merchants to take corrective action before enforcement levels are reached.
Fraud Prevention Tools
Reducing fraud at the source plays a central role in controlling both disputes and TC40 reports, since many chargebacks originate from unauthorized transactions that could have been stopped earlier in the process. Of course, every merchant must weigh the risk of fraud against the risk of increased customer friction or false declines. Striking the right balance demands careful testing and analysis of any tools implemented.
At a baseline level, most merchants benefit from controls such as address verification (AVS) and CVV matching that are standard for online transactions. These checks provide an initial filter against low-effort fraud attempts. Beyond these basics, stronger authentication methods such as 3-D Secure introduce an additional layer of issuer-backed verification. In many cases, this shifts liability away from the merchant and reduces exposure to unauthorized transaction claims.
More advanced fraud detection tools analyze transaction data in real time to assign a level of risk based on multiple indicators. Machine learning models can identify patterns that indicate elevated risk, such as unusual purchasing behavior, device inconsistencies, or signs of card testing activity. By flagging or blocking these transactions before they are completed, merchants can significantly reduce the volume of fraudulent activity that would otherwise contribute to higher VAMP ratios. Of course, these tools also come at a higher cost than the more basic fraud prevention options.
Dispute Prevention Tools
For high-risk merchants, dispute intervention tools play a central role in minimizing VAMP ratios. Chargeback prevention alerts, including Verifi CDRN and Ethoca Alerts, pause incoming disputes when both the issuing bank and the merchant are enrolled in the same network. When an alert is received, merchants can issue a refund to resolve the dispute. The dispute is not submitted as a chargeback and does not contribute to the merchant's VAMP ratio. Depending on the details of the dispute and the practices of the particular issuing bank, a TC40 report may or may not be filed.
Order Insight addresses disputes driven by confusion rather than fraud. By providing issuers with detailed transaction information at the time of inquiry, it allows cardholders to recognize legitimate purchases without escalating the issue. Clear billing descriptors and comprehensive purchase data improve the effectiveness of this tool and reduce unnecessary disputes.
Visa's Rapid Dispute Resolution offers another mechanism for limiting exposure. By automatically refunding eligible transactions based on predefined rules, it removes certain disputes from the VAMP calculation entirely. This approach is particularly effective for low-value transactions or cases where the probability of successfully challenging a dispute is low. Careful configuration is required to ensure that refunds are applied strategically rather than indiscriminately.
Visa Compelling Evidence 3.0 provides a guaranteed method for addressing certain types of fraud claims. It allows merchants to demonstrate that a transaction was legitimate using historical transaction data. The reliance on previous transactions and the strict data matching requirements limit the system's applicability, but when successfully employed it prevents both the dispute and the associated fraud report from affecting the merchant's VAMP ratio.
Analyzing Root Causes
Analyzing dispute data can reveal underlying problems such as product dissatisfaction, customer service issues, or unclear billing practices. Addressing these root causes reduces the likelihood of future disputes. Clear refund policies and responsive customer service help resolve issues before they escalate into chargebacks.
Centralized analytics can tie these efforts together by identifying trends across multiple data sources. With a clearer understanding of where problems originate, merchants can implement targeted changes that reduce overall risk.
Taking VAMP Compliance Seriously
Compliance under VAMP requires ongoing attention, regular analysis, and adjustments based on current performance. Maintaining a buffer below established thresholds provides protection against normal fluctuations and unexpected spikes.
Investing in prevention tools, strengthening operational processes, and improving visibility into transaction data are all necessary steps. Merchants that take a proactive approach will be better positioned to avoid penalties and maintain stable processing relationships. Those that delay action face a higher risk of falling out of compliance as the new standards take hold.
About Oscar Bello
Oscar Bello is the Chief Sales Officer for Chargeback Gurus. He is an experienced leader of revenue-driven organizations in digital payments and has spent more than 25 years building and managing teams to meet their goals and create shareholder value. Oscar has led regional teams for large multinational digital payment providers, built organizations from the ground up, and transformed under-performing organizations into highly successful ones.
Prior to joining Chargeback Gurus, Oscar's career spanned across LATAM, North America, and Europe with digital payment leaders Ingenico, Sagem, Lipman, Verifone, and Poynt, where he led the LATAM, European and US core revenue teams. He has also consulted hedge funds, private equity firms, and venture capital funds about the payments industry.
About Chargeback Gurus
Chargeback Gurus (CBG) is the leading AI-orchestrated chargeback management platform, helping merchants protect and recover more revenue. CBG's solutions are powered by sophisticated technologies, rich analytics, and deep industry expertise.
With real-time insights and flexible delivery models, CBG equips merchants with the tools and technology needed for effective chargeback prevention and recovery. CBG aligns 100% with client goals and operates with integrity, transparency, and an unprecedented level of security and compliance.
