What Merchants Need to Know About Visa’s Fraud and Chargeback Changes
Starting April 2025, Visa will implement the Visa Acquirer Monitoring Program (VAMP), a significant shift combining fraud and chargeback monitoring into a single compliance framework. This will directly impact how merchants manage disputes, particularly affecting subscription services, digital goods providers, e-commerce merchants, and businesses operating in high-risk industries.
Understanding Visa’s New VAMP Rules
Visa’s new monitoring program integrates both fraud-related and non-fraud disputes, creating tighter compliance requirements for merchants. Here’s what businesses need to prepare for:
Unified Fraud and Chargeback Monitoring
Under VAMP, all disputes—whether fraud or non-fraud—will be collectively assessed. Merchants must now manage overall dispute rates proactively and consistently.
Rapid Dispute Resolution (RDR) Changes
Previously, merchants relied on Rapid Dispute Resolution (RDR) to resolve disputes quickly without impacting their dispute ratios. Under VAMP, all RDR cases will now count against merchants' dispute ratios, demanding even greater vigilance and strategic management.
Stricter Compliance Thresholds
Visa’s threshold for acceptable dispute levels will become stricter, significantly increasing the risk of fines or compliance penalties for merchants failing to control disputes effectively.
Industries Most at Risk from Visa VAMP
The impact of Visa’s new rules will be especially pronounced for:
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Subscription Services: Businesses relying heavily on recurring payments must adopt clearer billing practices.
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Digital Goods Providers: E-commerce platforms and digital product vendors must enhance fraud detection and customer communication.
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High-Risk Sectors: Industries historically associated with higher chargeback rates, such as online gaming, travel, and adult content, must proactively manage payment risks.
How to Ensure Your Business Complies with Visa VAMP
Merchants need to take immediate steps to meet these new compliance requirements effectively:
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Advanced Fraud Prevention: Implement robust, proactive fraud detection software to identify and prevent fraudulent transactions before they result in chargebacks.
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Clear Billing and Transparent Policies: Improve billing clarity, clearly outlining subscription terms, cancellation policies, and refund procedures to minimise customer confusion and disputes.
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Enhanced Customer Communication: Regular and proactive customer engagement reduces the likelihood of disputes, providing customers clear channels to resolve issues before escalating to chargebacks.
Gala Technology’s SOTpay: Secure Your Business Against Payment Risks
Gala Technology’s SOTpay offers an industry-leading payment security solution, significantly reducing fraud risks and chargebacks through PCI DSS-compliant, secure payment processes. Implementing SOTpay helps businesses effortlessly adapt to Visa’s new VAMP rules by:
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Reducing fraud and dispute levels
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Simplifying compliance with Visa’s stringent standards
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Enhancing customer payment security and trust
Prepare Your Business for Visa VAMP with Gala Technology
Don’t risk penalties or compliance issues. Gala Technology’s proven payment solutions help your business manage Visa’s evolving compliance landscape confidently and effectively.
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