Q: What happens if I'm over 0.9%?

PSPs will typically: freeze new payouts, demand an immediate action plan, require proof of backup processor, and threaten termination in 30-60 days if you don't show improvement. You must submit a detailed action plan and reduce your ratio below 0.4% within 60-90 days.

Q: Is VAMP the same for all card networks?

No. Mastercard has EVFM (Excessive Fraud Merchant program) with different thresholds. American Express and Discover have their own programs. VAMP specifically refers to Visa's program, but PSPs track all networks combined.

Q: How long does this course take?

The full course takes about 30 minutes. It includes 5 modules: What is VAMP (5 min), Fraud ×2 Weighting (10 min), The 3 Thresholds (5 min), How to Reduce Your Ratio (10 min), and Already Over 0.9% (5 min). You can skip to any section based on your needs.

Question 1

What is VAMP?

Accepted Answer

VAMP (Visa's Acquirer Monitoring Program) is Visa's system for tracking merchant chargeback ratios. It calculates your ratio using the formula: (fraud disputes × 2 + service disputes) ÷ total transactions. If you exceed 0.9%, PSPs typically freeze accounts.

Question 2

Why do fraud chargebacks count double?

Accepted Answer

Visa weights fraud chargebacks 2× in the VAMP formula to punish merchants who allow fraud more heavily than those with service issues. For example, 5 fraud disputes count as 10 weighted disputes, while 5 service disputes count as only 5.

Question 3

What is the 0.9% VAMP threshold?

Accepted Answer

While Visa's official early warning threshold is 0.9%, most PSPs (Stripe, PayPal, Square) enforce this as their freeze/termination threshold. They start watching merchants at 0.4% and take action at 0.9% to avoid Visa fines.

Question 4

How do I calculate my VAMP ratio?

Accepted Answer

Formula: (fraud chargebacks × 2 + service chargebacks) ÷ total transactions. Example: 3 fraud + 2 service over 1,000 transactions = (3×2 + 2) ÷ 1,000 = 8 ÷ 1,000 = 0.8%. Use MerchantGuard's VAMP Calculator for automatic calculation.

Question 5

How do I reduce my VAMP ratio?

Accepted Answer

Focus on fraud prevention first (since it counts 2×): enable Stripe Radar or similar tools, require CVV/AVS, block high-risk countries, and add 3D Secure. For service disputes: make billing descriptors clear, respond to support requests in <4 hours, and issue proactive refunds.

Question 6

What happens if I'm over 0.9%?

Accepted Answer

PSPs will typically: freeze new payouts, demand an immediate action plan, require proof of backup processor, and threaten termination in 30-60 days if you don't show improvement. You must submit a detailed action plan and reduce your ratio below 0.4% within 60-90 days.

Question 7

Is VAMP the same for all card networks?

Accepted Answer

No. Mastercard has EVFM (Excessive Fraud Merchant program) with different thresholds. American Express and Discover have their own programs. VAMP specifically refers to Visa's program, but PSPs track all networks combined.

Question 8

How long does this course take?

Accepted Answer

The full course takes about 30 minutes. It includes 5 modules: What is VAMP (5 min), Fraud ×2 Weighting (10 min), The 3 Thresholds (5 min), How to Reduce Your Ratio (10 min), and Already Over 0.9% (5 min). You can skip to any section based on your needs.

Quick VAMP Ratio Check

How many successful transactions did you process last month?