VISA is making some major changes to how it keeps tabs on merchants. While these changes will not be enforced until October, now is the time to learn about them, and prepare for them.
High-Level Takeaways about VAMP
– VAMP monitors merchant disputes and fraud incidents. If merchants go over a certain incident threshold, they will be financially penalized.
– VAMP will also penalize merchants who experience many enumeration attacks.
– There are no penalties during the current “Advisory Period” for VAMP. Enforcement begins on October 1st, 2025.
– The threshold for penalties will become more rigorous beginning on April 1st, 2026.
Read on for more details.
What is VAMP?
VAMP is the successor to the Visa Dispute Monitoring Program (VDMP), the Visa Fraud Monitoring Program (VFMP), and several other programs. Whereas its predecessors separately monitored customer disputes and fraudulent transactions, VAMP does both at the same time. VAMP also provides specific rules for enumeration attacks, which involve bad actors rapidly inputting thousands of sensitive credentials to determine which ones are valid.
What is the VAMP Ratio?
VAMP monitors merchant performance across both fraud (TC40) and disputes (TC15) for Card-Not-Present (CNP) transactions. Any merchant with at least 1,500 monthly fraud and dispute incidents, or 300,000 monthly enumeration attacks, is a candidate for VAMP. The metric used to measure determine qualification is the VAMP ratio:
VAMP Ratio = Count of [Fraud (TC40) + Fraud & Non-Fraud Disputes (TC15)] ÷ Count of Settled Transactions (TC05)
A separate VAMP Ratio is calculated for enumerated transactions:
VAMP Ratio (for Enumeration) = Count of Enumerated Transactions ÷ Total Count of Transactions
Starting on October 1st, 2025, if either VAMP ratio is equal or greater than 220 bps (or 2.2%), the merchant will be categorized as “Excessive.” Merchants who qualify as “Excessive” will be charged $8 per disputed CNP transaction (starting on October 1st).
The threshold for penalties will become more stringent early next year. On April 1st, 2026, the threshold for either VAMP ratio to qualify as “Excessive” falls to 150 bps (1.5%).
How Do We Prepare for VAMP Enforcement?
There’s time to prepare for VAMP. Visa has provided a transition window, known as an “Advisory Period,” during which penalties will not be assessed. The Advisory Period will continue until September 30th, 2025, and is your chance to proactively address issues, plan remediation, and avoid future penalties.
Your acquirer processor is a key resource during the time — and TabaPay is committed to helping customers succeed.
Here are key steps to take during the advisory period, both internally and with TabaPay’s help:
1. Start Monitoring Dispute, Fraud, and Enumeration Thresholds Right Away
TabaPay recommends that our clients monitor their chargeback ratios every day using TabaPay’s Daily Chargeback and Daily Fraud Reports. Set up internal monitoring thresholds to ensure you know exactly where you stand relative to the VAMP threshold. Setting a more rigorous threshold (such as 1.5%, the threshold starting in April 2026) should motivate your organization to investigate, reduce, and mitigate problematic chargeback patterns.
When setting up internal thresholds, keep in mind that the VAMP Ratios are calculated based on calendar month. Specifically, Visa looks at the total number of fraud reports (TC40) and chargeback disputes (TC15) submitted for the month, divided by the total number of settled transactions during that same month.
2. Watch for News and Messages from TabaPay
TabaPay’s Fraud & Risk Team is working vigorously to prepare clients for the start of VAMP penalty enforcement. The team is monitoring weekly VAMP ratios across TabaPay’s client base, and will notify any merchants who are trending towards the threshold to qualify as “Excessive.”
TabaPay is also happy to offer extra support for clients who are concerned about their volume of fraud or disputes. On request, TabaPay’s team can review current fraud controls and recommend vendor solutions for chargeback mitigation.
(Note: If you receive a VAMP-related notification from us, it’s meant as a helpful heads-up and opportunity to collaborate with us – NOT a penalty.)
3. Make Sure You’re Using the Full Capabilities of TabaPay Shield
All TabaPay customers receive access to TabaPay Shield – and if you aren’t currently using all of its risk mitigation tools, now’s a good time to start. Key features for keeping your VAMP Ratio low include:
- Address Verification Service (AVS) – Use AVS to ensure you don’t accept cards with fraudulent addresses.
- Account Name Inquiry (ANI) – Use ANI to ensure the name on a card matches the name on file at the issuer’s bank.
- Card Verification & Eligibility – Use this feature to check that a card’s Bank Identification Number (BIN) permits pull or push transactions as needed. Plus, ask for CVV2 to ensure the cardholder has their card in hand.
- 3DS – Leverage Three-Domain Secure protocol to add an extra layer of security to CNP transactions.
- Apple/Google Pay – Support Apple Pay and Google Pay to improve security while making the customer experience more convenient.
- Real-Time Monitoring and Blocking – Fraud Detection and Mitigation for Cards. Currently in a beta program, commercial availability is anticipated in Q3 2025.
TabaPay shares the same goal as its clients: to stay well below Visa’s thresholds while minimizing fraud and dispute costs. We encourage you to engage with TabaPay’s team early so we can work together to strengthen your program ahead of VAMP’s October enforcement date. If you are not currently a TabaPay customer but interested in becoming one, reach out to us.
