VAMP: What it means in reality and why

Part 2

Hi there,

In my last newsletter, I discussed how Visa’s new Acquirer Monitoring Program (VAMP) is changing the game for acquiring banks. Now it’s time to talk about what it means for you, because the effects are real and are already being felt. The shift in accountability to acquirers means they’re now scrutinizing their merchant portfolios with hawk-like intensity, and this increased pressure is trickling all the way down.

Under VAMP, the playing field is going to be smaller. While the initial thresholds for merchants are set at 1.5% and will tighten further to 0.9% by January 2026, the real challenge lies in your acquirer's own thresholds. Since an acquirer’s entire portfolio performance is now at stake, they’re likely to impose even stricter, sub-Visa thresholds on their merchants to protect themselves. This means you might be perfectly compliant with Visa's rules but still get flagged for non-compliance and face penalties.

The financial stakes are higher as well. Acquirers are now being fined on a per-dispute basis by Visa, and it's a near certainty that they’ll pass these costs directly on to you. A single problematic month could result in a major financial hit, not just from the fees but from increased reserve requirements and the potential for account termination.

So what should a merchant do?

First, you’re going to need to invest in better fraud detection. VAMP is designed to catch enumeration attacks—the systematic testing of stolen card details—and your fraud prevention tools need to be up to the task. With basic security no longer good enough, you’ll need advanced systems that can detect and block these attacks before they result in a "fraud report" and count against your VAMP ratio.

Second, you need regular communication with your processor AND your acquirer, because you can't fix what you don’t know about. Get a clear understanding of your VAMP metrics and how your acquirer plans to manage their risk. This is a partnership, after all, and you need to make sure they’re providing the data, tools, and support you need. The VAMP program includes resources like the OneERS dashboard and advanced fraud intelligence tools—use them to your advantage.

Finally, get ahead of disputes before they happen. This means improving your customer service, maintaining transparent billing practices, and using pre-dispute resolution tools like Rapid Dispute Resolution (RDR) and the Cardholder Dispute Resolution Network (CDRN). Resolving issues before they escalate into a formal chargeback, you can keep your VAMP ratio low and avoid triggering problems with your acquirer.

This is going to mean investing a little more time and money in your payment processing and fraud detection tools than normal. While that may be a pain, it’s worth remembering that if cybercriminals were a nation, they’d be the 3rd largest economy in the world—an economy that we should all do our very best to avoid.

Until next time,

Joe Zahaitis

Payment Processing Consultant