Visa Acquirer Monitoring Program 2025

With October’s new Visa Acquirer Monitoring Program 2025 enforcement now in effect, high-risk merchants face stricter monitoring than ever before. Visa's updated VAMP framework has consolidated fraud and dispute monitoring into a single, more aggressive system that could trigger shutdowns, hefty fines, and processor drops for non-compliant businesses.

If you're processing payments in gaming, telemedicine, nutraceuticals, or other challenging industries, understanding VAMP compliance isn't optional—it's essential for survival.

What You'll Learn

• How VAMP's new ratio calculation affects high-risk merchants
• Specific thresholds that trigger monitoring and penalties
• Warning signs your business might be at risk
• Proactive steps to improve compliance before problems arise
• When switching to a VAMP-compliant processor makes sense

VAMP Thresholds and Penalty Structure

The VAMP program uses what is called the “VAMP ratio” to determine whether a merchant has had enough fraudulent or dispute activity to warrant consequences under the program. Below are the thresholds and their penalties, so businesses that already know their VAMP ratio can figure out where they stand:

*Applies to North America, the EU, and the Asia Pacific regions

Now, let’s dive into how this ratio is calculated.

How the Visa Acquirer Monitoring Program 2025 Affects High-Risk Merchants

Unlike previous monitoring programs, the updated framework introduces a unified ratio that combines fraud reports (TC40) and dispute chargebacks (TC15) into one metric:

VAMP Ratio = (Fraud Reports + Total Disputes) ÷ Total Settled Transactions

This change particularly impacts high-risk merchants because:

• Double-Counting Effect: A single fraudulent transaction often generates both a fraud report AND a chargeback, effectively counting twice against your ratio.
• Lower Volume Penalties: TC40 reports can be filed on small transactions that banks wouldn't normally dispute, inflating your ratio even with minimal dollar losses.
• Friendly Fraud Vulnerability: When cardholders dispute legitimate charges claiming fraud, you get hit with both a TC40 report and a chargeback dispute.

For merchants already operating in challenging industries, this new calculation method makes compliance significantly harder to achieve.

Warning Signs Your Business Is at Risk

If you aren’t sure whether your business is at risk of VAMP enforcement, you can assess your current compliance status by checking these key indicators:

Transaction Volume Thresholds

VAMP is targeted toward higher-risk and higher-volume businesses with significant chargeback and fraud risk. As a result, the following volume thresholds can automatically subject you to VAMP monitoring:

• 1,500+ combined disputes monthly: You're subject to VAMP monitoring
• 300,000+ enumeration attempts: You'll be evaluated for card testing compliance

Industry Risk Factors

High-risk sectors face additional scrutiny under the new regulations, including:

• Online gaming and gambling
• CBD 
• Nutraceuticals
• Telemedicine and telehealth
• Subscription services
• Digital goods and software

Business Risk Metrics

Like prior VISA and Mastercard risk profiling programs, VAMP uses the following traditional risk metrics to determine whether a business is worth monitoring. You are potentially subject to VAMP monitoring if your business experiences:

• Chargeback ratios approaching 1.5-2% range
• Increasing fraud reports from card networks
• Reserve requirements from your current processor
• Rising dispute-related fees and penalties

If you tick any of these boxes, you should arm yourself with proactive compliance strategies to make sure you aren’t subjected to unexpected costs or shutdown.

Proactive Compliance Strategies

To help high-risk merchants better prepare themselves for the VAMP program, we’ve laid out the following proactive compliance framework:

VAMP Compliance Framework

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1. Implement Advanced Fraud Prevention

One of the most important variables in the VAMP ratio equation is fraudulent transactions, and there are many modern tools that can be utilized to proactively protect your firm. Take the following steps to make your fraud management infrastructure more advanced:

• Deploy real-time transaction monitoring
• Use machine learning-based fraud detection
• Implement velocity checks and behavioral analysis
• Set up geolocation and device fingerprinting

2. Optimize Chargeback Management

Chargebacks are another exceptionally important metric in the VAMP ratio calculation, and they are extremely costly for high-risk businesses. Take the following steps to reduce chargeback rates:

• Establish rapid dispute response protocols
• Use compelling evidence packages for disputes
• Implement Order Insights and alert systems
• Monitor dispute reason codes for patterns

3. Enhance Transaction Data Quality

Improving data quality can help you dispute chargebacks, reduce fraud, and create friction that dissuades “friendly fraud.” Implement the following procedures to equip your business with the right data to accomplish these goals:

• Improve billing descriptor clarity
• Implement CVV and AVS verification
• Use 3D Secure authentication where appropriate
• Maintain detailed transaction documentation

4. Strengthen Customer Communication

Better customer communication not only provides better customer satisfaction, but also gives them more effective alternatives than a chargeback when they are dissatisfied with their purchase. Improve your customer communication with the following best practices:

• Provide clear terms of service and policies
• Implement proactive customer support
• Use email receipts with contact information
• Establish easy refund/cancellation processes

Consider Switching Payment Processors

Sometimes, the most effective compliance strategy is partnering with a processor that specializes in high-risk accounts and VAMP compliance.

Cons of Traditional Payment Processing:

• Limited chargeback management support
• Generic fraud tools that are not designed for your industry
• Poor communication about VAMP requirements
• History of dropping accounts without warning

Benefits of VAMP-Compliant High-Risk Processing

• Specialized tools for dispute prevention
• Dedicated risk management support
• Industry-specific fraud prevention
• Proactive compliance monitoring
• White-glove account management

High-risk processors are better equipped to assist merchants who are most at risk for VAMP enforcement, as they have extensive experience in handling merchants with higher fraud, chargeback rates, and transaction volumes.

The Cost of Non-Compliance

The new enforcement standards brought real financial consequences for excessive merchants:

• Immediate Penalties: $8 per dispute for merchants exceeding thresholds 
• Account Reserves: Processors may hold 5-20% of monthly volume 
• Processing Restrictions: Limitations on transaction types or volumes
• Account Termination: Complete loss of payment processing ability

For high-volume merchants, these penalties can quickly escalate into tens of thousands of dollars monthly.

Take Action Before It's Too Late

The Visa Acquirer Monitoring Program 2025 requires ongoing attention, rather than reactive measures taken after problems arise. High-risk merchants who wait until they trigger monitoring programs often face limited options and higher costs.

The key is partnering with a processor that understands your industry's unique challenges and provides the specialized tools needed for compliance. With the right support, you can maintain healthy ratios while continuing to grow your business.

Apply now for specialized high-risk payment processing with built-in VAMP compliance tools.

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