The Visa blog article titled "Visa Announces New Change to VAMP Rules—Here’s What You Need to Know" explains a major update to Visa's Acquirer Monitoring Program (VAMP), set to take effect on April 1, 2025. The update means that TC40 fraud alerts resolved through Rapid Dispute Resolution (RDR) will now count towards a merchant's VAMP ratio, impacting their fraud metrics. This shift requires merchants to be more proactive in managing chargebacks and fraud prevention to stay within Visa's thresholds and avoid penalties.
The article outlines the key implications of this update for merchants:
- Increased Monitoring: With TC40 fraud alerts now part of the VAMP calculation, merchants must closely monitor their fraud activity to avoid exceeding Visa's limits.
- Stricter Compliance Requirements: As Visa lowers the risk threshold for acquirers to 0.3% by 2026, merchants could face stricter requirements and additional pressure to maintain compliance.
- Fraud Prevention Tools: Utilizing tools like RDR, Order Insight, and Solidgate’s antifraud solutions can help merchants manage disputes more effectively and reduce fraud-related chargebacks.
- Improved Product and Service Quality: By offering a quality product and adhering to subscription merchant guidelines, businesses can reduce disputes and fraud risks.
- Adaptation to New VAMP Thresholds: Merchants must prepare for stricter VAMP thresholds, with penalties applying if they exceed the limits after a grace period.
Overall, the article stresses the importance of proactive fraud management and strategic use of fraud prevention tools to ensure merchants stay within Visa's VAMP thresholds and avoid costly penalties.