Visa Acquirer Monitoring Program – What European Merchants Need To Know

The update to VIRP on April 1, 2024, marked significant changes to the payment processing landscape. Starting April 1, 2025, the game will forever change again, with VAMP (Visa Acquirer Monitoring Program) replacing the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP).

The Visa Acquirer Monitoring Program was created to manage risk and enforce compliance within the payments ecosystem for European merchants and acquirers. It monitors chargeback performance among acquiring banks and merchants, targeting those with excessive rates to clamp down in an already stringent environment that leaves very little room for chargebacks.

By setting specific thresholds and metrics, VAMP ensures that acquirers who exceed acceptable levels face fines and increased scrutiny. This rigorous oversight helps maintain the integrity of the payment system and protects all stakeholders from the negative impact of high chargeback ratios.

If you’re a European merchant looking to buckle down on your chargebacks, fill out our demo below for a quick quote and a plan to prepare you for April 1, 2025.

Key Takeaways With VAMP

• VDMP & VFMP will be completely phased out before April 1, 2025
• VAMP will roll out in Europe first, as it hasn’t been announced in the US as of now
• Program thresholds undergo considerable changes on April 1
• Starting April 1, the new “above standard” threshold for acquirers has been reduced from .9% to .5% in 2025 and .3% in 2026
• The “early warning” stage has been removed
• Utilizing a chargeback management company such as CB-Alert is vital going into 2025

Who Does The Visa Acuirer Monitoring Program Affect?

If you’re a European merchant or acquirer, April 1, 2025, is a date to bookmark. Significant changes with VAMP will make it more challenging than ever for merchants and acquirers to stay compliant and below the threshold.

Before getting into everything the new changes VAMP will bring, it’s important to note a few things:

• Strict Monitoring: Visa closely tracks chargebacks for acquirers and their merchants each month. You may be placed into a chargeback monitoring program if your monthly chargeback ratio surpasses these limits. This can result in additional fees and activity restrictions, and if the issue continues, your bank might freeze or even terminate your account. With the new VAMP, the chargeback threshold limits have become even stricter, making it extremely difficult to remain compliant.
• Consolidation Of Visa Fraud Monitoring Program (VFMP) and Visa Dispute Monitoring Program (VDMP): VAMP essentially consolidates these programs and brings its own tweaks to chargeback rules and limits.
• Date The Changes Go Live: The Visa Acquirer Monitoring Program (VAMP) will undergo a major overhaul on April 1, 2025.
• Simplified Process With VAMP: The update will streamline and improve how merchants and acquirers manage chargebacks and engage with Visa’s risk ecosystem.

CB-Alert is here to provide expert assistance in navigating these changes and optimizing your chargeback management. Contact us to ensure you stay compliant and effectively manage your chargeback risks.

What is the Visa Acquirer Monitoring Program?

The Visa Acquirer Monitoring Program (VAMP) is designed to oversee acquirer activity related to fraud and chargebacks. It uses transaction metrics and the Visa Account Attack Intelligence (VAAI) Score system to enhance risk management and fraud detection. 

VAMP is crucial for maintaining robust controls and oversight, aiming to protect the Visa brand from fraud and excessive chargebacks. 

It involves monthly performance reviews of acquirers and their merchants, offering support and guidance to ensure payment ecosystem security. The program includes tools like the OneERS dashboard to help clients track and improve their performance.

As you can already tell, you will need to be well aware of VAMP and ensure your company is ready to fight disputes/chargebacks in 2025.

So, What Are The Changes To VAMP?

Starting April 1, 2025, Visa will discontinue the Visa Fraud Monitoring Program (VFMP) and Visa Dispute Monitoring Program (VDMP) for merchants in the Visa Europe region. These programs will be replaced by an upgraded Visa Acquirer Monitoring Program, bringing troubling changes to acquirers and merchants.

Below, we breakdown the current thresholds under the current programs, and then we breakdown the changes.

Current Thresholds Under VDMP

Program	Monthly Threshold
VDMP Early Warning	Chargeback ratio of 0.65% and up to 75 chargebacks
VDMP Standard	Chargeback ratio of 0.9% and up to 100 chargebacks
VDMP Excessive	Chargeback ratio of 1.8% and up to 1,000 chargebacks

Current Thresholds Under VFMP

Program	Monthly Threshold
VFMP Early Alert	$50,000 in chargebacks and 0.65% of total sales
VFMP Standard	$75,000 in chargebacks and 0.9% of total sales
VFMP High Risk	$250,000 in chargebacks and 1.8% of total sales

Thresholds Under VAMP

Program Level	Threshold Requirements
VAMP Card-Absent Dispute Criteria	750 disputes with a 1% dispute ratio
VAMP Card-Absent Fraud Criteria	$500,000 in card-not-present fraud with a 1% fraud-to-sales ratio

VAMP Revisions & Thresholds

An acquirer is flagged for the Visa Acquirer Monitoring Program if they exceed either the updated fraud-dispute ratio or the new enumeration ratio, calculated as follows:

New Formulas Below:

Ratio Type	Numerator	Denominator	Formula
VAMP Ratio	Count of Reported + Non-Fraud Disputes	Count of Total Sales	VAMP Ratio = (Count of Reported + Non-Fraud Disputes) / Count of Total Sales
VAMP Enumeration Ratio	Count of Enumerated Transactions	Count of Total Sales	VAMP Enumeration Ratio = Count of Enumerated Transactions / Count of Total Sales

Date	Acquirer “Above Standard” Threshold	Acquirer “Excessive” Threshold	Merchant “Excessive” Threshold
Starting April 1, 2025	Exceeds 0.5% chargeback ratio	Not Applicable	Exceeds 1.5% chargeback ratio
Starting January 1, 2026	Between 0.3% and 0.5% chargeback ratio	Exceeds 0.5% chargeback ratio	Exceeds 0.9% chargeback ratio

Additional Insights:

The revamped VAMP program will employ a new metric based on transaction counts to assess both fraud and non-fraud chargebacks. This update includes new criteria involving confirmed enumerated transactions, validated through the Visa Account Attack Intelligence (VAAI) Score system, replacing the former Risk Operations Center (ROC) method.

What Happens When Acquirers Are Flagged?

“Above Standard” Level	“Excessive” Level
Significant rise in fraud, dispute, or enumeration activities	Severe increase in fraud, dispute, or enumeration activities
Acquirers must investigate and address issues	Visa closely examines individual merchants and payment facilitators
Visa monitors compliance within the acquirer’s portfolio	Visa groups merchants for detailed analysis and applies strategies to evaluate performance

What Happens When Acquirers Are Identified?

When acquirers are identified, Visa will send a notification detailing their status. This notification will cover:

• Reason for Identification: Explains why the acquirer has been flagged.
• Response Timeline: Specifies the timeframe within which a response is required.
• Consequences of Noncompliance: Outlines potential repercussions if issues are not addressed.
• Recommended Best Practices: Provides guidance on how to improve, where applicable.

Next Steps for Acquirers:

Acquirers must enhance their risk management practices and address the issues highlighted. They are required to:

• Submit a Remediation Plan: Provide a detailed plan within 15 calendar days. This plan should tackle the root causes of the performance issues identified.

*IMPORTANT: As we learn more in updates from Visa, we will make changes here.

What Do The Changes Mean For Merchants?

Under the current system, chargebacks affect your ratio metrics, potentially increasing your fraud-to-sales and dispute-to-sales ratios and resulting in higher fees and penalties. 

With the VAMP changes starting April 1, 2025, European merchants can benefit from reduced restrictions if disputes are managed through Visa and Verifi channels. This new approach will also improve fraud protection across the ecosystem and lessen the financial impact of chargebacks.

How the VAMP Changes Impact Acquirers

The updated VAMP program offers acquirers enhanced tools to handle better risk, fraud, and disputes within their portfolios. With increased flexibility, acquirers can more effectively oversee their entire portfolio and monitor individual merchants, leading to improved management and control.

How CB-Alert Can Help Merchants Adapt to the New VAMP Rules

With the changes incoming, merchants must implement everything in their power to reduce disputes/chargebacks. At CB-Alert, we are dedicated to using every tool at our disposal to ensure you stay well below the thresholds to avoid any complications.

With the upcoming changes to VAMP, here’s how we can assist merchants:

• Data Reporting: Merchants and acquirers must adhere to updated reporting and compliance guidelines. Our product ensures seamless data aggregation and automated evidence collection that aligns with Visa’s new standards.
• Chargeback Alerts: CB-Alert provides real-time tracking and immediate alerts.
• Proactive Fraud Prevention: To meet Visa’s goal of reducing fraud and chargebacks, CB-Alert offers advanced fraud detection algorithms and integrates smoothly with existing fraud prevention tools, supporting your proactive approach.
• Dispute Management: VAMP’s changes emphasize using tools like RDR, CDRN, and Visa Compelling Evidence 3.0 to deflect disputes and tackle friendly fraud. CB-Alert simplifies the use of these programs, easing penalties and improving your chargeback ratios by streamlining dispute and fraud management.

By implementing CB-Alert, adapting to VAMP’s new rules becomes more manageable, helping you stay compliant and effectively manage chargeback risks.

Introducing OneERS Platform

Effective April 1, 2025, merchants will have the opportunity to use OneERS, a new platform built on Microsoft Dynamics. This cutting-edge tool will offer a comprehensive dashboard for performance tracking, detailed remediation guidance, timely alerts, and access to training resources. A 90-day transition period will be provided to ensure all users can familiarize themselves with the platform and its features.

Don’t Wait, Stay Alert

Starting April 1, 2025, Visa’s VAMP will usher in a new era for chargeback management, moving away from outdated programs to a more streamlined system. This evolution will make tools like CDRN, RDR, and Ethoca alerts with CE3.0 even more critical for Visa Europe merchants. Resolving disputes through these platforms will help minimize exposure and avoid penalties, leading to increased authorization rates and reduced reserve requirements.

These changes will improve compliance and dispute management. At CB-Alert, we provide the expertise and tools you need to navigate this transition seamlessly. Don’t miss out on the benefits—contact our experts today to learn how to reduce fraud and chargeback liability by over 90%.