What Is Visa's VAMP Program?
VAMP (Visa Acquirer Monitoring Program) is Visa's enforcement framework that monitors merchants' chargeback-to-transaction ratios. Merchants exceeding the 0.9% early warning threshold face escalating fines, mandatory remediation plans within 45 days, and potential placement on the MATCH list for ratios above 1.8%, which blocks payment processing for 5+ years.
VAMP Compliance Quick Checklist
- Monitor your chargeback ratio weekly — not just monthly statements
- Implement 3D Secure 2.0 on all card-not-present transactions
- Enroll in Ethoca alerts and Verifi CDRN for pre-dispute resolution
- Enable Rapid Dispute Resolution (RDR) for automatic refund on qualifying disputes
- Ensure billing descriptors clearly match your brand and product
- Set up velocity rules to block suspicious transaction patterns
- Have a remediation plan template ready before you need one
VAMP Threshold Tiers
Visa calculates chargeback ratios monthly by dividing the number of chargebacks received in a month by the total number of Visa transactions processed in the prior month. Understanding each tier helps you set internal alert thresholds well below the danger zone. Most compliance teams target staying under 0.65% as their safe operating range.
| Tier | Ratio | Consequence | Timeline |
|---|---|---|---|
| Early Warning | 0.9% | Notification to acquirer; merchant must acknowledge | 45 days to submit remediation plan |
| Standard | 1.5% | Monthly fines starting at $25,000; mandatory remediation | Fines compound monthly if unresolved |
| Severe | 1.8% | MATCH list placement; account termination risk | MATCH lasts 5+ years minimum |
How VAMP Ratios Are Calculated
Visa divides the total number of chargebacks received in the current calendar month by the total number of Visa sales transactions processed in the prior calendar month. This one-month lag is critical to understand: a spike in chargebacks this month is measured against last month's volume. If your transaction volume drops while chargebacks remain steady, your ratio climbs even without additional disputes.
The 45-Day Remediation Window
Once a merchant breaches the early warning threshold, Visa notifies the acquiring bank, which then notifies the merchant. From that notification date, merchants have exactly 45 calendar days to submit a formal remediation plan. This plan must include specific strategies for reducing chargebacks, a realistic timeline for implementation, and measurable targets. Common remediation strategies include deploying 3D Secure, enabling Ethoca/Verifi alerts, improving billing descriptors, and adding velocity-based fraud rules. Merchants who fail to submit a plan or show measurable improvement face escalation to the fines tier.
The VAMP Prevention Stack
Effective VAMP compliance requires a layered approach combining authentication, pre-dispute deflection, and real-time monitoring. No single tool is sufficient. The merchants who stay well below thresholds deploy at least three of these layers simultaneously.
3D Secure 2.0
AuthenticationShifts chargeback liability to the issuing bank for authenticated transactions. Reduces chargebacks by 60-80% on enrolled transactions.
Rapid Dispute Resolution (RDR)
Pre-DisputeAutomatically refunds qualifying disputes before they become chargebacks. Resolves disputes in real-time at the network level.
Ethoca Alerts
AlertsReal-time alerts from issuing banks when a cardholder initiates a dispute. Allows merchants to refund before the chargeback is filed.
Verifi CDRN / Order Insight
AlertsVisa-owned alert network. Order Insight shares transaction data with issuers to prevent disputes from escalating to chargebacks.
Clear Billing Descriptors
PreventionMatch your billing descriptor to your brand name and website URL. Unclear descriptors cause 15-20% of all friendly fraud chargebacks.
Velocity Rules
Fraud DetectionBlock transactions that exceed normal patterns: multiple cards from one IP, rapid-fire orders, or mismatched billing/shipping addresses.
Understanding the MATCH List
The MATCH (Member Alert to Control High-Risk Merchants) list is the payment industry's equivalent of a blacklist. Maintained by Mastercard but used by all major card networks, MATCH placement means virtually no acquiring bank will approve a new merchant account for the listed business or its principals. Entries remain for a minimum of 5 years, and some categories (like fraud-related terminations) can persist longer. Principal owners listed on MATCH may also be personally flagged, affecting their ability to open accounts under different business entities. Prevention is far more effective than attempting MATCH removal after the fact.
How MerchantGuard Helps With VAMP Compliance
MerchantGuard provides real-time VAMP monitoring, automated alerts when your ratio approaches thresholds, and an AI compliance coach that builds remediation plans specific to your industry and transaction profile.
Frequently Asked Questions
What is the VAMP chargeback threshold?
Visa's VAMP program uses three threshold tiers: 0.9% chargeback-to-transaction ratio triggers an early warning, 1.5% triggers monetary fines starting at $25,000 per month, and 1.8% triggers severe consequences including potential MATCH list placement. These ratios are calculated monthly based on the prior month's transaction volume.
How long do merchants have to fix VAMP violations?
Merchants receive 45 calendar days from notification to submit a remediation plan to their acquiring bank. The plan must include specific chargeback reduction strategies, timeline for implementation, and measurable targets. Failure to submit or implement the plan within the remediation window results in escalation to the next penalty tier.
What is the MATCH list and how long does it last?
The MATCH (Member Alert to Control High-Risk Merchants) list is a shared database maintained by Mastercard that all acquiring banks check before approving new merchant accounts. Placement on MATCH effectively prevents a merchant from obtaining payment processing. MATCH entries remain active for a minimum of 5 years and are extremely difficult to remove early.
Does VAMP apply to all merchants or only high-risk ones?
VAMP applies to all merchants processing Visa transactions regardless of industry or risk classification. However, high-risk verticals like CBD, nutraceuticals, adult content, and subscription services naturally face higher chargeback rates and are more likely to breach VAMP thresholds. Low-risk merchants can also be affected by friendly fraud spikes or poor billing practices.
What tools prevent VAMP violations?
The most effective VAMP prevention stack includes 3D Secure 2.0 authentication for liability shift, Rapid Dispute Resolution (RDR) for automatic refunds on qualifying disputes, Ethoca and Verifi alerts for pre-dispute resolution, clear billing descriptors, and velocity rules to detect fraud patterns. MerchantGuard provides real-time monitoring and automated alerts before thresholds are breached.
