Page 26 - GS250301
P. 26
Insights and Expertise
VAMP enhancements – February 2025
Sum of CNP fraud by post date(TC 40) + non-fraud
chargebacks (TC 15 condition codes 11,12,13)
VAMP Ratio* = -----------------------------------------------------
Settled CNP Transactions (TC 05)
*RDR’s and CDRN non-fraud returns and Compelling
Evidence 3.0 disputes are excluded from the numerator
# of Enumerated Transactions
VAMP Enumeration Ratio = ------------------------------------
# of Enumerated Auth attempts (approvals +
declines)
By Ken Musante
Napa Payments and Consulting
he Visa Acquirer Monitoring Program (VAMP)
is being enhanced and reformed. Effective April Currently, to obtain the thresholds, acquirers and
1, 2025, the Visa Dispute Monitoring Program merchants need to comb through their TC 40, TC 15 and TC
T (VDMP) and the Visa Fraud Monitoring 05 reports, but Visa is updating Visa Online with additional
Program (VFMP) are being consolidated into the new tools and training. These additional tools will calculate
VAMP. the metrics needed to determine compliance. Instead of
today's non-compliance assessments, compliance will be
The new VAMP is intended to strengthen acquirer risk enforced through fines.
controls to enhance the safety of the Visa platform. It
specifically targets card-not-present (CNP) transactions. Acquirers are given latitude as to whether to maintain
the merchant within their portfolio. From the acquirer’s
New criteria based on a combined ratio of CNP fraud perspective, trailing activity will count toward their
transactions plus CNP non-fraud disputes are measured ratios. Additionally, non-disputed fraudulent transactions
against totaled CNP settled transactions. are less visible and often have a significant tail. Those
numbers must be managed, nonetheless. RDR’s, CDRN
This is calculated for both merchants and acquirers. non-fraud returns and compelling evidence 3.0 disputes
Enumerated transactions will also be monitored. will be excluded from the VAMP numerator.
Beginning April 1, merchants and acquirers will be Disadvantaging small acquirers
entered into an advisory period which runs through June
of 2025. This format significantly disadvantages small acquirers
and their merchants. Small acquirers do not have the CNP
No fees will be assessed during this period, but acquirers mega merchants to offset their portfolios. A small acquirer
should ensure they have appropriate risk controls, as losing a large CNP merchant will be disproportionately
enforcement actions begin in July of 2025. impacted. Merchants working with smaller acquirers will
pay the price. Think about a small acquirer who exceeds
Measuring the ratios the 30 or 50 bps threshold.
VAMP will target larger merchants and acquirers. A
minimum 1,000 monthly offending transactions are All transactions from merchants who exceed the 30 bps
necessary before VAMP requirements apply. The ratio for threshold will be fined—even if the merchant’s own VAMP
both the acquirer and merchant is measured as follows: ratio was below the "excessive" ratio. Large acquirers will
naturally have a lower CNP VAMP ratio so that same
merchant, at the larger acquirer, with the exact same ratio
will not be impacted.
26
