Be scared. Massive fines coming with the Visa VAMP clampdown. 

Based on the recent re-launch of the Visa VAMP programme in October 2025  

• The new VAMP for fraud and chargebacks has BIG teeth from this month: it will challenge the viability of many merchants and their partners. 
• Let’s not underestimate these VAMP programme changes: merchants that don’t attack their card fraud and disputes/chargeback challenges will suffer. 

The VAMP programme has had confused and misguided reiterations. Not the finest hour for Visa, but we see the intention and challenges, and why ratios have had to change, along with the rationale for Visa fines. 

Card schemes are frustrated by merchants that ignore the rules or circumvent them, especially when merchant focus has been to get around the rules rather than follow them. 

Recurring payment models and free trials for subscriptions are the hardest to manage, as are the higher-risk merchant sectors. Customers hate merchants that treat disputes as a cost of doing business, and such merchants must now be fearful of the new VAMP and serve the consumer and not the crooks. Disputes and chargebacks always indicate unhappy customers, but also more work and additional costs. VAMP will ‘drive’ errant players from the market; but can we count upon it working? 

It may seem like a tool to drive revenue for Visa, but it should eliminate errant disputes and then stop merchants from abusing the system. We must support the new VAMP and its enforcement, and thereby destroy poor merchant practices:  

• Stop merchants that have too many disputes (say, above 0.3% and then lower – irrespective of $£€ values) 
• Investigate merchants that pay excessive MSCs and chargeback fees as justification for higher performance ratios  
• Mandate cardholder authentication globally – especially for high-risk merchants  
• Require scheme rules to be followed  
• Require merchants to check their customer ID in merchant sectors with higher-risk products to address the abuse of anonymity 

Urgent focus should include: 

• Those with introductory offers, free trials for subscription payments, where customer communication is poor or minimal – i.e., when/how payments are taken and by whom 
• Those where chargebacks are seen as a cost of doing business 
• High revenue/high profit margin sectors 
• Acquirers and third parties that simply pass on all penalties and increased fees without addressing the underlying issues  
• High-risk merchant sectors 

For many, the VAMP changes will mean: 

1. more compliance notifications 
2. Visa will see and target the weaker acquirers and payment processors 
3. new creative solutions and industry collaboration will emerge 
4. happier customers that use cards online 
5. better practices that drive out poor and illegal merchant practices 
6. nowhere for errant merchants to turn 

Buckle up! The VAMP journey will get faster, stronger and cleaner, and Visa will enforce with renewed vigour. 

Also read related article here: Fraud and Chargebacks – A New Stance From Visa 

*** 

Authors: Bill Trueman & Kevin Smith, Payments Risk Directors, London, Payments Consulting Network 

Kevin has over 30 years’ experience in the retail management, financial services and payments industries. With 17 years at Visa globally he has a proven track record in developing and executing innovative and practical business strategy, product development and service definition in card acceptance and acquiring. With both marketing and risk management backgrounds, he brings a pragmatic approach to business development.

Bill has over 30 years experience in the bank management, financial services and payments industries, as well as having set-up and grow businesses. With 15 years at Lloyds Bank, largely in payments, risk management, fraud and general banking, in setting up an outsource business and consulting practice: Bill has a proven track record in developing and executing innovative and practical solutions and change management. He has a practical ‘real-world’ leaning. As ‘Riskskill’, he is a Visa-approved reviewer under the Visa Global Acquirer Risk Standards (GARS) programme. 

*** 

If you found this article helpful and would like to read similar articles, please subscribe to our newsletter.