On April 1, 2025, Visa introduced significant updates to its Visa Acquirer Monitoring Program (VAMP), and businesses need to be prepared.
These changes overhauled how fraud and chargebacks are monitored, focusing particularly on card-not-present (CNP) transactions. With this update, Visa discontinued the Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) on March 31, 2025, marking a major shift from the system that had been in place since October 1, 2019.
Past
Visa has steadily consolidated its compliance measurement efforts over time, with a strong focus on streamlining the dispute resolution process—a trend that shows no signs of slowing down. A key milestone in this ongoing transformation was the launch of the Visa Claims Resolution (VCR) system in April 2018. VCR fundamentally reshaped how disputes are managed, with the goal of enhancing workflow efficiency and improving global coordination across the payments ecosystem.
Before VCR, Visa operated under its U.S. and Global Fraud and Chargeback Programs, which had been in place for decades. The decision to transition to VCR was driven by several critical goals:
- Simplifying the dispute process: The previous chargeback system was complex and time-consuming, often requiring significant manual intervention from both issuers and merchants to resolve disputes.
- Reducing chargeback volumes: With the rapid growth of e-commerce and digital payments, Visa sought to prevent invalid or unnecessary chargebacks from overwhelming the system.
- Shortening resolution times: The older system often led to lengthy dispute timelines, whereas VCR was designed to resolve most disputes within 30 days by leveraging automation and clear, categorized workflows.
- Leveraging automation and real-time data-sharing: VCR leveraged tools like Verifi and Ethoca, which use real-time data-sharing to resolve disputes before they escalate into chargebacks.
By April 2018, Visa had fully replaced both the U.S. and Global Fraud and Chargeback Programs with VCR, marking a major step forward in modernizing fraud and chargeback processes, enhancing global fraud monitoring, and reducing the operational burden on stakeholders across the payments ecosystem.
Until March 2025
Until March 31, 2025, Visa tracked the number of chargebacks and the level of fraud that acquirers and merchants incurred each month under the programs below. Merchants exceeding the thresholds faced significant penalties, including extra fees, operational restrictions, and, in extreme cases, the freezing or termination of accounts.
Program Thresholds in Effect Until March 31, 2025:
- Visa Dispute Monitoring Program (VDMP):
- Early Warning: 75 chargebacks and a chargeback to sales ratio of 0.65% within a month.
- Standard: 100 chargebacks and a chargeback to sales ratio of 0.90% within a month.
- Excessive: 1,000 chargebacks and a chargeback to sales ratio of 1.80% within a month.
- Visa Fraud Monitoring Program (VFMP):
- Early Warning: $50,000 of fraud and a fraud to sales ratio of 0.65% within a month.
- Standard: $75,000 of fraud and a fraud to sales ratio of 0.90% within a month.
- Excessive: $250,000 of fraud and a fraud to sales ratio of 1.80% within a month.
- Visa Acquirer Monitoring Program (VAMP):
- CNP Dispute Threshold: 750 chargebacks and a chargeback to sales ratio of 1.00% within a month.
- CNP Fraud Threshold: $500,000 of fraud and a fraud to sales ratio of 1.00% within a month.
- CNP In the US Region – In addition, for Domestic Visa Secure Fraud Activity monitoring: $100,000 of fraud and a fraud to sales ratio of 0.75% within a month.
- Standard CNP Enumeration Attack Threshold: Enumeration block count of 5,000 transactions or enumeration rate of 5.00%.
- Excessive CNP Enumeration Attack Threshold: Enumeration block count of 50,000 transactions or enumeration rate of 10.00%.
For the thresholds in effect today, and more on enumeration attacks, please refer to the Byte titled “What We Know About VAMP.”
Today and Beyond
Visa’s fraud and chargeback monitoring programs have changed again with VAMP, and further change is likely. As real fraud, friendly fraud and chargebacks grow more complex—particularly with the rise of card-not-present (CNP) transactions and mounting regulatory pressures—businesses need to stay ahead of evolving compliance requirements. Visa’s programs will continue to adapt, and you need to be ready for what’s next.
That’s where Slyce360 comes in.
Slyce360 offers advanced analytical tools that both acquirers and merchants need to proactively identify risks and implement tailored solutions to mitigate them. Our platform is designed to foster collaboration, ensuring acquirers and merchants can thrive together in a payments landscape where compliance requirements are constantly changing and measuring compliance metrics is increasingly complex. With Slyce360, you’re not just reacting—you’re staying ahead of the curve.
Ready to protect your business and keep growing in this fast-paced environment? Let’s connect today and explore how Slyce360 can help you stay compliant, reduce risks, and drive growth!