Navigating Visa’s VAMP program and staying ahead of rising fees
What you need to know to reduce fraud spikes, stay within VAMP thresholds, and keep more of every sale
Visa has introduced the Visa Acquirer Monitoring Program (VAMP), a unified system to manage fraud and chargeback risks globally, effective April 1, 2025. This change aims to create a safer payment environment for everyone—but it also comes with new rules and responsibilities for your business. Here’s a quick overview of what’s changing:
What is VAMP?
Visa’s new VAMP program consolidates several monitoring programs into one, simplifying compliance but also introducing stricter standards for fraud and chargebacks. Here's what you need to know:
- Unified monitoring: Previously, fraud and chargeback programs were separate. Now, they’re combined under a single system.
- New risk thresholds: Visa has updated the metrics for what qualifies as high risk, meaning tighter limits on acceptable fraud and chargeback rates.
- Focus on acquirers: Acquirers (like us) are tasked with monitoring merchants more closely and intervening early when risks appear.
- More scrutiny for high-risk industries: Businesses in sectors like cryptocurrency or luxury goods are under closer watch due to their naturally higher risk profiles.
Managing fraud has become critical, as global retail businesses lost $308 billion to false declines in 2023 alone. VAMP is Visa’s way of addressing this by creating clearer, unified standards to help businesses minimize fraud while avoiding unnecessary revenue losses.
Managing fraud has become critical, as global retail businesses lost $308 billion to false declines in 2023 alone
Understanding VAMP ratios and fee thresholds
As part of the VAMP rollout, Visa introduced updated ratio ranges that determine when an acquirer or a merchant is placed into early warning or excessive categories. These categories matter because they influence whether additional fees apply and when further oversight is triggered.
Here is a simplified view of the new VAMP structure based on Visa’s published guidance:
How VAMP will affect your business
- Your VAMP ratio determines whether fees apply. Keeping fraud and disputes low helps ensure VAMP penalties don’t appear on your statement.
- Fees start as soon as activity hits “Above Standard” or “Excessive.” These charges are small individually but can become meaningful if elevated levels continue month after month.
- Thresholds tighten in April 2026. The merchant excessive VAMP ratio drops from 2.2% to 1.5%, making it easier to enter the high-risk category if fraud or dispute levels rise.
- Visa reviews performance monthly. A single spike, even one week of unusual activity, can move you into a higher category.
- Acquirers handle VAMP differently. Some may pass their own VAMP-related fees on to merchants, including those who remain within the acceptable range. Partnering with an acquirer that applies the program correctly helps keep your costs stable.
- Healthy ratios reduce costs. Managing fraud and disputes proactively helps you stay within Visa’s safe range and avoid unnecessary fees.
Visa’s updated approach is designed to improve security and reduce risk across its payment network. Here’s what it means for your business:
- Stricter standards for fraud and chargebacks
Visa is now monitoring fraud and chargebacks together under unified thresholds. If your rates exceed these limits, your business could face penalties or even restrictions on processing Visa payments.
√ What you should do: Monitor your chargeback and fraud activity more closely and ensure that both stay within acceptable levels.
- Heightened oversight for certain industries
High-risk industries like crypto and luxury goods will be under more scrutiny. Even a few fraudulent transactions could trigger flags and increase your risk rating.
√ What you should do: Consider investing in advanced fraud detection tools that help you identify and block risky transactions before they escalate.
- Invest in fraud prevention
Visa’s updated thresholds mean you’ll likely need more sophisticated fraud prevention tools, such as AI-driven monitoring or data enrichment solutions. These will help detect fraud early and keep you compliant.
√ What You Should Do: Work with your payment provider to ensure your fraud prevention strategy is up-to-date and aligned with the latest standards. 86% of eCommerce businesses working proactively with payment providers reported increased profitability in the last 12 months thanks to better fraud prevention strategies.
- Reputation management and compliance
Staying compliant with Visa’s new standards isn’t just about avoiding penalties—it’s about protecting your reputation with customers and partners.
√ What You Should Do: Take a proactive approach to compliance, knowing it helps build trust and ensures uninterrupted operations.
How we’re supporting you
Adapting to new compliance requirements can feel overwhelming, but we are taking proactive steps to ensure businesses like yours are protected and prepared for Visa’s VAMP program. Here’s how we’re helping:
- Proven expertise in compliance and fraud prevention:
We have a track record of successfully implementing major compliance updates, while ensuring a frictionless payment process for your customers. This experience positions us as experts in balancing security and seamless transactions. - Advanced reporting tools:
Our reporting software, including updates to platforms like Cpanel, will provide you with clear insights into your fraud and chargeback performance. These tools make it easier to monitor your compliance and make informed decisions about risk management. - Ongoing risk monitoring:
We continuously monitor transactions for fraud and chargeback risks in real-time, helping to identify and address issues before they become problems. This proactive approach ensures your business stays within Visa’s safe thresholds. - Enhancing fraud prevention strategies:
Leading payment providers are embracing industry best practices like AI-powered fraud detection, real-time fraud screening, and data enrichment to strengthen fraud prevention and compliance efforts. These innovations help protect your business from evolving risks.
The bottom line
Visa’s VAMP program introduces important changes to how fraud and chargebacks are managed, requiring businesses to stay vigilant and proactive. But you don’t have to do it alone. At Nuvei, we’re ready to help you navigate these changes, keep your business compliant, and protect your operations. With us by your side, you can focus on what matters most — growing your business.
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