VAMP Simplified: The New Core Metric

VAMP fundamentally changes the metric used to judge risk. It moves away from separate monitoring for fraud and disputes and introduces a single, consolidated ratio that is applied at the Acquirer level.

The core metric is the VAMP Ratio, which is calculated as:

VAMP Ratio=Monthly CNP Sales Transactions / Monthly CNP Fraud and Non-Fraud Disputes

What is VAMP and How Will It Affect Merchants? 

Visa has just introduced a seismic shift in how it manages transaction risk with the Visa Acquirer Monitoring Program (VAMP). If your business accepts Visa cards online, particularly in the Card-Not-Present (CNP) environment, you need to pay close attention. VAMP isn't just a new name; it's a completely new, stricter framework that replaces the older Fraud and Dispute Monitoring Programs (VFMP and VDMP).

VAMP Simplified: The New Core Metric

VAMP fundamentally changes the metric used to judge risk. It moves away from separate monitoring for fraud and disputes and introduces a single, consolidated ratio that is applied at the Acquirer level.

The core metric is the VAMP Ratio, which is calculated as:

VAMP Ratio=Monthly CNP Sales TransactionsMonthly CNP Fraud and Non-Fraud Disputes

This means that a single issue can now contribute to your risk score in multiple ways, dramatically increasing the pressure to maintain low fraud and chargeback rates.

The Tighter Thresholds: Why Merchants Should Care

While VAMP technically monitors Acquirers (the banks or processors that hold your merchant account), the impact flows directly down to you. Visa has significantly tightened the threshold for when an Acquirer is deemed "Excessive."

This 50% reduction in the allowable risk limit for Acquirers has profound consequences for merchants:

• Acquirer Scrutiny Rises: To avoid penalties from Visa for breaching the 0.5% limit, Acquirers will become much more aggressive in monitoring and managing their highest-risk merchants.
• Stricter Merchant Limits: Your Acquirer may now impose their own internal limits that are much lower than Visa's official Merchant Allowable threshold (which itself is also tightening, moving towards 1.5% and lower).
• Faster Penalties and Termination: If your business is identified as a significant contributor to your Acquirer crossing the 0.5% threshold, you face a higher risk of:
  • Immediate fines passed down from the Acquirer.
  • Mandatory remediation plans.
  • Ultimately, the termination of your merchant account.

 Action Plan: 3 Steps to VAMP Compliance

VAMP is a clear signal that proactive risk management is now non-negotiable for online merchants.

1. Harden Your Fraud Defenses:
   • Implement advanced fraud screening tools.
   • Specifically combat enumeration fraud (where bots test stolen cards) with tools like CAPTCHA, velocity checks, and transaction limits.
   • Utilize 3D Secure (3DS) where appropriate to shift liability for fraudulent transactions.
2. Focus on Customer Service (Chargeback Prevention):
   • Many disputes are "non-fraud" (e.g., "service not received" or "goods not as described"). Improve your customer communication, use clear billing descriptors, and make your refund and return policy extremely transparent.
   • Integrate pre-dispute alert services (like Ethoca or Verifi) to intercept and resolve potential disputes before they become official chargebacks.
3. Know Your Ratios:
   • Start tracking your combined CNP fraud and non-fraud disputes as a percentage of your total CNP sales. This is your personal VAMP indicator. If you're trending anywhere near the 1.0% mark, you need immediate remediation.

VAMP ensures that only merchants committed to best practices in both fraud prevention and customer service will thrive in the CNP ecosystem. Compliance isn't just about avoiding fees—it's about preserving your ability to accept Visa payments.