If you have a merchant account and have received a notice to fix your VAMP Fraud Ratio or you’ll be terminated by your processor, don’t panic because after reading this you’ll know what to do.
We’ll explain what triggered the notice, how to calculate your VAMP fraud ratio, and what you need to do to stay compliant to ensure you keep your merchant account open.
Key Summary
- Receiving a notice to fix your VAMP Fraud Ratio means your merchant account is generating too many fraud or dispute transactions.
- Your acquirer (payment processor) is being held accountable and if action isn’t taken quickly, your account could be penalized or terminated.
- Vector Payments works with high-risk merchants and can help you fix the issue and maintain payment processing stability.
Why You Received a Notice
Visa uses the VAMP system to monitor fraud and dispute activity across its network. If your business generates a high number of chargebacks or fraudulent transactions, Visa flags your processor – and your merchant account becomes a liability. Most commonly, this happens because of:
- High-risk industry activity (e.g., CBD, firearms, online subscriptions)
- Inadequate fraud prevention systems
- Poor product descriptions or refund policies
- Misleading marketing or billing confusion
If you’re in high-risk industries like smoking accessories, telemedicine, or CBD, you’re more likely to trigger alerts if ratios spike.
How VAMP Works
VAMP tracks the ratio of chargebacks and fraud cases to your total Visa transactions each month. Visa sets specific thresholds and if you go above them, your processor is required to take action. Otherwise, Visa can apply enforcement penalties, suspend processing, or recommend termination.
Here’s How the VAMP Ratio Is Calculated:
VAMP Ratio = (TC40 + TC15 Disputes) ÷ Total Settled Visa Transactions
- TC40 = confirmed fraud reports
- TC15 = non-fraud disputes (e.g. product not received, customer dissatisfaction)
- Total transactions = every Visa transaction you’ve processed in that month
Example: If you have 20 TC40s, 30 TC15s, and 3,000 total Visa transactions in a month:
VAMP Ratio = (20 + 30) / 3,000 = 1.67%
Use Our VAMP Calculator Below:
Your VAMP Fraud Ratio is: —
Visa VAMP Thresholds for 2025
- Above Standard (Warning): 0.9%
• Excessive (Penalty Zone): 1.5% or more
• Minimum dispute volume: 1,000+ disputes per month
If you hit 1.5% and above, Visa enforcement kicks in even if your processor wants to keep you. That’s why addressing the issue early is critical.
How to Fix Your VAMP Ratio
1. Analyze Your Data Immediately
Identify the sources of fraud or disputes. Are they tied to a certain product, service, ad campaign, or region? Do customers feel misled? Understanding what’s driving the ratio is the first step to fixing it.
2. Implement Fraud Prevention Tools
Use Address Verification (AVS), CVV checks, bot detection, and real-time fraud filters. Also, consider Rapid Dispute Resolution (RDR) and Verifi alerts to stop chargebacks before they occur.
3. Improve Product Clarity and Policies
Make sure your descriptions, pricing, terms, and refund policies are clear and easy to find. Provide tracking info for every order. Avoid vague subscription setups that customers might forget.
4. Be Proactive with Refunds
If a customer complains, issue a refund before they file a chargeback. This can dramatically reduce your dispute count. Empower your support team to act quickly.
5. Work With a VAMP-Savvy Payment Processor
If your current provider isn’t giving you a plan or worse, is threatening termination, you need to switch to a processor that understands high-risk. Vector Payments helps high-risk businesses like yours stay under thresholds and operate safely in regulated industries.
Why Work With Vector Payments?
We specialize in helping businesses who are in or approaching- VAMP trouble. Our team helps you:
- Review and monitor your dispute and fraud data in real time
- Implement the right fraud tools and chargeback defenses
• Strategize a recovery plan to lower your ratio - Avoid shutdowns or reserve holds on your funds
Whether you’re in online dating, vape and e-cigarettes, firearm payment processing, or other “high risk” industries, we’ve helped merchants just like you navigate VAMP and keep their business running.
Contact us today if you’ve received a notice to fix your VAMP Fraud Ratio or want to get ahead of compliance issues before they escalate. We’ll help you take back control of your merchant account and build a path forward.
Frequently Asked Questions
How long do I have to fix my VAMP Fraud Ratio?
Visa generally gives acquirers and merchants a grace period (VAMP became effective on April 1st 2025 with an advisory period until September 30th 2025), but penalties and account restrictions can begin quickly. The sooner you respond, the better your outcome.
What if my processor is threatening to shut me down?
You have options. Contact Vector Payments to explore a high-risk-friendly solution and avoid gaps in your payment processing.
Can I reduce my chargebacks quickly?
Yes. With the right mix of RDR, fraud tools, better support, and refunds, many businesses reduce disputes in 30-60 days.
Is being in VAMP permanent?
No. If you bring your ratios down and maintain compliance, Visa will remove you from the program and we’ll help you get there.