Visa's New Penalty Program
Protect Your Business from Costly Chargebacks
Starting in 2025, Visa’s Acquirer Monitoring Program introduces significant fines for merchants with high dispute rates. Learn how to safeguard your business and avoid these penalties.
Understanding VAMP
Visa's Acquirer Monitoring Program Explained
Visa’s Acquirer Monitoring Program (VAMP) is set to impose stringent fines on merchants who exceed specified dispute and fraud thresholds. Designed to mitigate risk, VAMP categorizes merchants into ‘Above Standard’ and ‘Excessive’ tiers based on their chargeback ratios. Merchants falling into these categories face fines ranging from $5 to $10 per transaction, depending on their classification. This program aims to encourage better transaction management and reduce fraudulent activities. For high-risk merchants, understanding and adapting to these changes is crucial to maintaining profitability and compliance.
The ‘Above Standard’ tier applies to those with a VAMP ratio of 0.5% or fewer than five disputes, while the ‘Excessive’ tier targets those with a 2.2% ratio and over 1,500 monthly disputes. These thresholds will be enforced starting October 2025 for the ‘Excessive’ tier and January 2026 for ‘Above Standard.’ Merchants must prepare to adjust their operations accordingly to avoid these substantial fines.
VAMP Penalties Overview
Above Standard Penalties
Merchants classified as ‘Above Standard’ will incur a $5 fine per transaction if they exceed a 0.5% VAMP ratio or have fewer than five disputes. This tier is designed to encourage merchants to maintain low dispute rates and improve transaction monitoring.
Excessive Penalties
For those categorized as ‘Excessive,’ the stakes are higher with a $10 fine per transaction. This applies to merchants with a 2.2% chargeback ratio and over 1,500 monthly disputes. The goal is to significantly reduce high-risk transactions and encourage better fraud prevention strategies.
Compliance Strategies
To avoid these penalties, merchants should implement robust fraud detection systems, regularly review transaction data, and engage in proactive customer communication. These strategies can help maintain compliance and protect your business from costly fines.
Impact of Chargebacks on Merchant Profits
Chargebacks can reduce merchant profits by up to 40% annually, significantly affecting cash flow and business sustainability.
How CoCard MD Protects You
CoCard MD prevents TC40 and TC15 disputes before they’re filed, keeping your VAMP ratio below threshold — and your business fine-free.
Our proactive system flags risky transactions, intercepts pre-disputes, and stabilizes your merchant ID to eliminate VAMP exposure entirely.
No chargebacks = no VAMP fines
Secure Your Business Against Visa Penalties
Don’t let unexpected fines erode your profits. Act now to protect your merchant ID and avoid costly chargebacks. Our free risk assessment will provide you with the insights needed to stay compliant and fine-free.