Impending Arrival of VAMP: Ravelin Advises Merchants to Prepare Prior to Visa Fraud Enforcement Action
Visa has revealed substantial changes to its Acquirer Monitoring Program (VAMP), set to come into effect in the first quarter of 2024. The program aims to consolidate Visa's dispute and fraud monitoring for both merchants and acquirers into a single global framework.
Under the new VAMP, merchants with more than 2.2% of disputed transactions, whether fraudulent or not, will incur a fee of $8 per dispute. Failure to comply with VAMP may result in additional fees or even being blocked from accepting Visa payments.
Martin Sweeney, CEO of Ravelin, emphasizes the impact of VAMP on a merchant's ability to accept Visa payments. He urges merchants to review their current dispute and fraud rates using Visa's new calculations and to take immediate action on the updated VAMP program.
Sweeney also advises merchants to invest in real-time fraud prevention tools to identify and block fraudulent activity. He stresses that maintaining low fraud rates is a business-critical priority for merchants.
In addition, Ravelin recommends considering the deployment of 3D Secure at the merchant level. This security protocol adds an extra layer of protection against fraud by requiring the cardholder to authenticate transactions.
It's worth noting that almost 40% of global card transactions are made using Visa payments, according to Sweeney. Therefore, it's crucial for merchants to stay compliant with VAMP to avoid any potential disruptions in their business operations.
Enforcement of the VAMP program begins on October 1, 2025. From April 2026, the threshold for disputed transactions will be reduced to 1.5%. Merchants should check their acquirer's policies around chargebacks and any changes planned for VAMP to ensure they remain compliant.
Sweeney warns that merchants cannot afford to sit back as VAMP is here and will impact customer experience, operations, and revenue. He urges merchants to ask acquirers to send data for all chargebacks to better understand their current situation and take necessary actions to improve their fraud and dispute rates.
In conclusion, the updated VAMP program by Visa is a significant development for merchants worldwide. By taking proactive steps and investing in fraud prevention tools, merchants can ensure they remain compliant and continue to accept Visa payments seamlessly.
