Risk & Compliance
VAMP (Visa Acquirer Monitoring Program)
Definition
VAMP (Visa Acquirer Monitoring Program) visa's program for monitoring merchants with excessive chargebacks or fraud. Triggered when chargeback ratio exceeds 0.9% or fraud ratio exceeds thresholds. Merchants in VAMP face monthly fees ($25K+), remediation requirements, and potential termination. Program has multiple tiers with escalating consequences. Similar to Mastercard's Excessive Chargeback Program (ECP). Getting into these programs is expensive; staying in is worse.
Related Terms
Chargeback Ratio
The percentage of transactions that result in chargebacks, calculated as chargebacks divided by transactions over a period. Card networks monitor this ratio closely. Visa's threshold for monitoring is 0.9%; Mastercard's is 1.0%. Exceeding thresholds triggers monitoring programs with fines and potential termination. High-risk MCCs often face stricter benchmarks. Ratio calculated monthly, with some lag for dispute timing.
High-Risk Merchant
A classification by acquirers for merchants perceived as having elevated risk of chargebacks, fraud, or regulatory issues. Common high-risk verticals: gambling, forex, adult, nutraceuticals, crypto, travel, and subscription billing. Consequences include higher rates (1-3% premium), rolling reserves, volume limits, and limited acquirer options. Classification is risk assessment, not legitimacy judgment.
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