5 Critical Actions Merchants Must Take to Stay Compliant with Visa’s New VAMP Rules

For years, merchants have navigated Visa’s chargeback and fraud monitoring programs—VDMP and VFMP—like parallel tracks. Each had its own thresholds, metrics, and penalties. But in 2025, Visa upended that system with the launch of the Acquirer Monitoring Program (VAMP) in April. 

This redefined how risk is measured across the entire Visa payments ecosystem. Under VAMP, fraud and disputes are no longer separate. The impact of this is that every chargeback, regardless of reason, now counts against the same threshold. And starting October 1, 2025, merchants who exceed these thresholds risk real financial penalties.

This isn’t just an acquirer problem. Merchants whose ratios cross Visa’s limits could face higher costs, more scrutiny, and even the loss of their processing relationships. The good news is that there’s still time to act.

Here are five essential steps merchants should take right now to stay compliant, protect their revenue, and avoid the VAMP penalty box.

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1. Understand and Monitor Your VAMP Ratio

The first step in any compliance strategy is simple. Know where you stand. Under VAMP, Visa sets an “Excessive” threshold based on a new formula:

VAMP Ratio = (Count of fraud reports [TC40] + Count of all disputes [TC15]) ÷ Total settled transactions. 

For most markets, that threshold is:

• 2.2% until March 31, 2026
• 1.5% starting April 1, 2026
  
  

Many merchants have never had to track their fraud and dispute activity in tandem before. But with VAMP, both numbers matter equally. Even if your fraud is low, too many friendly fraud or service disputes can tip you over the line.

What to do now: Work with your acquirer to get regular, detailed reports showing both fraud alerts and chargebacks. Build an internal dashboard or use a tool that lets you calculate your current VAMP ratio monthly. Early visibility is key to early intervention.

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2. Strengthen Your Fraud Prevention and CX Together

VAMP isn’t just about preventing “true” fraud. Every dispute, whether a stolen card or a customer claiming an item wasn’t received, counts toward your ratio. That’s why both fraud prevention and customer service must work hand in hand.

Too many merchants focus solely on fraud filters and neglect the dispute side: Delivery issues, unclear policies, or slow responses that lead customers to file chargebacks unnecessarily.

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What to do now: 

• Tighten fraud controls with tools like 3-D Secure (which doesn’t exempt you from VAMP but reduces fraud).
  
• Use AVS, CVV, and geolocation checks to block risky transactions.
  
• Proactively manage customer expectations: Send clear order confirmations, transparent shipping updates, and make it easy for customers to reach you before they contact their bank.
  
  

Remember, every preventable dispute is money saved, both in lost revenue and potential VAMP fines.

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3. Implement Pre-Dispute Solutions to Prevent Chargebacks 

Visa’s VAMP rules reward proactive dispute management. If you can resolve a dispute before it becomes a formal chargeback, it won’t count against your ratio. That’s where tools like Verifi’s Rapid Dispute Resolution (RDR) and Ethoca alerts come into play

When an alert is received, merchants can issue a refund immediately, stopping the dispute from progressing. Visa’s rules are clear in that disputes resolved through these pre-dispute channels are excluded from VAMP calculations.

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What to do now:

• Enroll in Verifi RDR and Ethoca alerts if you haven’t already.
• Automate your response where possible. Timing is everything, and disputes must be resolved within the same reporting cycle to be excluded.
  
  

Platforms like ChargebackStop make this seamless by automating alerts, issuing refunds, or submitting compelling evidence at scale. This isn’t essential under VAMP.

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4. Align with Your Acquirer Before Enforcement Kicks In

Visa’s program monitors acquirers too. If your business pushes your processor’s portfolio into Excessive status, you could see more than just fines. You could lose your processing relationship altogether.

Many acquirers are already setting stricter internal thresholds below Visa’s official limits to manage portfolio risk. Merchants who ignore this may find themselves cut off without warning.

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What to do now:

• Proactively meet with your acquirer to understand how they’re interpreting VAMP.
  
• Clarify how your MIDs are classified and ensure descriptors are accurate. Bad descriptor grouping can mask problems or overstate risk.
  
• Ask for transparency: demand monthly VAMP ratio reports and discuss joint remediation plans if you’re close to the thresholds.
  
  

Being collaborative now can save you from scrambling later.

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5. Build a Monthly Compliance Routine Before October 1

VAMP isn’t a one-time audit. You’ve got to ensure compliance continually. Starting October 1, 2025, merchants over the limit can be fined $10 per dispute for every transaction above the threshold.

To avoid surprises, merchants need a standing compliance rhythm. Review fraud dispute reports monthly, monitor for spikes in enumeration fraud (card testing) which can also trigger VAMP, and regularly test your fraud filters and dispute processes.

What to do now:

• Designate an owner on your team responsible for VAMP compliance.
  
• Set internal targets below Visa’s thresholds to create a safety margin.
  
• Leverage automated tools for monitoring and alerts to ensure nothing slips through.
  
  

Visa’s thresholds may tighten further in the future, so being proactive now sets you up for long-term success.

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How ChargebackStop Makes Merchants VAMP-Compliant

At ChargebackStop, we understand that merchants don’t have time to manually track every dispute, every fraud alert, and every ratio. That’s why we’ve built an automated platform that:

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• Integrates Verifi and Ethoca alerts for instant pre-chargeback resolution.
  
• Automates dispute responses using best-in-class representment tools.
  
• Delivers real-time dashboards that track your VAMP ratio and flag risks before they escalate.
  
  

Our clients typically see chargeback volumes drop significantly, often by more than 50% within months of deploying our solution. But they’re not just saving money on disputes. They’re staying in business, protecting their processing relationships, and avoiding the hidden costs of non-compliance.

‍Don’t wait until Visa’s October deadline. Book a free demo with ChargebackStop and take the stress out of VAMP compliance before the penalties start.