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Insights and Expertise
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Visa TC40 reports Visa's fraud reporting system helps report, track and
analyze fraudulent transactions and trends. Fraud is
and VAMP defined as someone other than the cardholder using the
account number or card without the cardholder's consent
or when the true cardholder is manipulated to use the
card in a fraudulent manner.
Sausage making

The TC40 consists of four TRRs: TCR 0 through 3. TCRs
1 and 3 are primarily for mail fraud and cardholder-not-
received claims. TCR 0 is the primary record that makes
up the data in the TC40. TCR 2 is a conditional field and
if present contains a Visa transaction identifier. TC40
reporting has a host of information about the merchant,
the transaction, the acquirer and, of course, the type of
fraud. The most common fraud types are:
• Lost
• Stolen
By Ken Musante • Not received as issued
Napa Payments and Consulting • Counterfeit
pring is beautiful. Everything old is renewed.
Strangely, I feel that way about Visa's
Transaction Component 40 (TC40) reports.
S Visa's fraud reports are ageless but are being VAMP: Fast facts
dusted off and held up as a tool Visa will use to measure Launched in 2024, Visa’s Acquirer Monitoring
acquirers and merchants. Program (VAMP) aims to strengthen fraud oversight
by holding acquirers accountable for high fraud levels
Acquirers and processors have consumed the TC40 reports reported by issuers. VAMP relies heavily on data from
to monitor issuer-reported fraud at merchant locations for TC40 reports, which aggregate issuer-reported fraud
decades. This report is another tool in the continual fight and detail unauthorized use of cardholder accounts.
against suspect merchants. It is also a dated tool.
While TC40 reports have long been part of Visa's fraud
Where AI can spot trends and anomalies within ecosystem, VAMP elevates their importance by using
authorization requests, the TC40 awaits the issuer to receive them to calculate a fraud ratio for each acquirer's
notice from a cardholder regarding a fraudulent item and portfolio. This ratio, if it exceeds Visa's thresholds,
then has 30 days to report that item as fraud – before it can trigger increased scrutiny, corrective measures or
appears on the TC40 report. Consequently, while the TC40 financial consequences. Unlike chargebacks, which
is important, it's not an ideal early indicator. That's why I are often addressed quickly due to clear financial
was surprised it was being used as the centerpiece of one incentives, TC40 entries may be delayed—issuers
of Visa's new reporting and fee programs. have up to 30 days to file them.
Recycle
TC40 reports consist of four types of Transaction
With Visa's new Acquirer Monitoring Program (VAMP), Response Records (TCRs), each serving a different
fraud reporting has become critical to acquirers and function, with TCR 0 being the most critical. Fraud
processors. Visa has always monitored fraud and compels categories include counterfeit, stolen, card-not-
issuers (and acquirers) to report fraud, but VAMP has present (CNP), and account takeover.
increased the criticality of measuring and monitoring
issuer-reported fraud (see my prior article on VAMP at VAMP's impact is especially significant for acquirers
www.greensheet.com/ebooks/gs250301/index.html#p=26). boarding new or high-volume merchants. Because
fraud reporting can lag behind transactions, a
Visa provides acquirers with fraud reporting through its portfolio may look healthy at first but deteriorate as
TC40 reporting. The TC40 is composed of daily Transaction TC40 data catches up. To manage risk, acquirers are
Response Records (TRR). The 40 is the code used in all Visa advised to implement proactive fraud controls and
fraud reporting systems. (My fellow industry consultant consider merchant-tiered pricing based on VAMP
Geoff Millikan postulated that 40 was simply the next ratios.
number up in the lineup of clearing messages).

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