Blog by Conor Lyden, Trustap Founder & CEO
When the Visa Acquirer Monitoring Program (VAMP) was introduced earlier this year, it was clear it was going to have a big impact, especially for ecommerce brands and online merchants.
On April 1st 2025, Visa made a fundamental change to its monitoring program. There was a period of no enforcement which stayed in effect until the end of September, however now enforcement has started and we’re seeing the very real effect this is having on ecommerce merchants in particular. Below, we break down the key questions and concerns we’re hearing most often, and what they mean for your business
What is the VAMP ratio?
It’s now critical for ecommerce merchants to understand their VAMP Ratio, because this is the metric Visa and acquirers use to assess fraud and dispute risk. The VAMP Ratio is calculated as:
(Reported Fraudulent Transactions + Disputed Transactions) / Total Settled Transactions
This ratio determines whether your merchant account remains in good standing with Visa.
What Changed in VAMP in 2025
Visa’s new VAMP rules significantly tighten the thresholds for merchants.
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Merchant allowable VAMP Ratio: reduced from 2.2% → 1.5%
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Acquirer allowable VAMP Ratio: reduced from 1% → 0.5%
Previously, a VAMP Ratio of 2.2% or below was fine. Lots of merchants would have been in and around that number but could work with the platforms they were using to reduce it over time. Now however, the allowable ratio is only 1.5%.
But much more importantly, there has been a drop from 1% to 0.5% for acquirers. This is a huge change, and one that has started affecting merchants in a major way.
Why are Ecommerce Merchants Affected?
In order to comply with Visa’s new threshold, many acquirers have started imposing limits on their merchants’ chargeback ratios that are even stricter than Visa’s. For example, some acquirers are now setting a VAMP ratio threshold of 1% for its merchants in an attempt to ensure that the average across its entire portfolio remains below the 0.5% required by Visa.
Some acquirers have introduced:
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Setting internal limits as low as 1% per merchant to help ensure their overall portfolio average stays below Visa’s required 0.5%.
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Automatic account reviews
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Instant terminations for elevated risk
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Zero-tolerance policies for disputes and chargebacks
This means merchants who were previously within acceptable ranges may now face sudden restrictions.
Why Are Acquirers Taking a Zero-Tolerance Approach?
Acquirers (like Shopify Payments for example) are responsible for the collective VAMP performance of their portfolios, meaning that any merchant whose VAMP ratio exceeds acceptable levels could potentially jeopardise the acquirer’s compliance with VAMP. Some acquirers may levy fines against merchants with a VAMP ratio exceeding their stricter limits, but most have just started terminating merchant accounts with a zero tolerance policy.
I’m a Merchant, How Can I Reduce my VAMP Ratio?
Here are three simple tips to avoid disputes and chargebacks:
- Speedy Responses: Making support easy and fast reduces the likelihood that buyers escalate issues to disputes.
- Make Refunds Easy: Simple refund process can prevent customers from requesting chargebacks out of frustration.
- Clear Product Information: Describe products and services honestly and in detail to reduce “not as described” disputes.
What Should Ecommerce Merchants Do Next?
With Black Friday and the busy holiday season approaching, the timing couldn’t be more critical. Merchants should strongly consider having a backup plan in place as increased volume inevitably brings increased dispute risk.
If you’re a merchant trying to understand what this means for you, feel free to get in touch. At Trustap, we pride ourselves on having a world-class system that protects our partners from high dispute and chargeback rates whilst ensuring maximum conversion across platforms like Shopify, WooCommerce and many more.
Alternatively, you can check out our VAMP calculator to see where your business stands.
