{"id":9016,"date":"2024-12-02T11:52:45","date_gmt":"2024-12-02T11:52:45","guid":{"rendered":"http:\/\/&p=9016"},"modified":"2024-12-02T11:52:45","modified_gmt":"2024-12-02T11:52:45","slug":"how-visas-new-fraud-rules-could-impact-your-business-and-how-to-stay-ahead","status":"publish","type":"post","link":"https:\/\/pa.outright.co.il\/fibonatix\/how-visas-new-fraud-rules-could-impact-your-business-and-how-to-stay-ahead\/","title":{"rendered":"How Visa\u2019s New Fraud Rules Could Impact Your Business\u2014and How to Stay Ahead"},"content":{"rendered":"\n

Big changes are coming to how fraud and disputes are managed. The new Visa Acquiring Monitoring Programme (VAMP)<\/strong>, set to launch in April 2025, introduces stricter fraud thresholds and expanded metrics across the UK and EU, raising compliance standards for both acquirers and merchants. <\/p>\n\n\n\n

For acquirers, this means closer monitoring of merchants and tougher limits to meet. For merchants, your fraud and dispute levels will play a bigger role in shaping your acquirer\u2019s compliance\u2014and potentially your relationship with them. <\/p>\n\n\n\n

Here\u2019s what merchants and acquirers in the UK and EU need to know about VAMP and how to stay ahead of these changes. <\/p>\n\n\n\n

What is VAMP and What’s Changing? <\/h2>\n\n\n\n

Visa\u2019s new VAMP will be replacing its previous monitoring systems with several key updates. Here\u2019s a breakdown of what\u2019s changing: <\/p>\n\n\n\n

Lower<\/strong> Fraud and Dispute Thresholds for Acquirers <\/h3>\n\n\n\n

Acquirers must keep fraud and dispute ratios below 0.5% by April 2025 and 0.3% by January 2026, requiring close monitoring of their merchant portfolios to ensure compliance. <\/p>\n\n\n\n

A Stricter Calculation Method<\/strong> <\/h3>\n\n\n\n

VAMP introduces a new ratio formula that includes disputes like reported fraud transactions<\/a> (TC40) in addition to non-fraud disputes. This more comprehensive metric pushes both acquirers and merchants to resolve disputes early. <\/p>\n\n\n\n

(Count of Reported Fraud + Count of Non-Fraud Disputes) \u00f7 Count of Total Transactions<\/strong> <\/p>\n\n\n\n

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This change reflects Visa\u2019s push for a more comprehensive view of risk and makes it crucial for merchants and acquirers to manage disputes before they escalate into chargebacks<\/a>. <\/p>\n\n\n\n

Accountability for Merchants of All Sizes<\/strong> <\/h3>\n\n\n\n

In the past, smaller merchants or those with lower transaction volumes often went unnoticed in fraud monitoring. VAMP changes that with stricter thresholds designed to hold more businesses accountable. However, the new rules only apply if there\u2019s a monthly minimum of 1,000 combined fraud and non-fraud disputes. For merchants and acquirers meeting this threshold, proactive fraud prevention and effective dispute management are no longer optional\u2014they\u2019re essential for staying compliant. <\/p>\n\n\n\n

What Do These Changes Mean for Merchants and Acquirers\u2014and How to Prepare<\/strong> <\/h2>\n\n\n\n

The new VAMP requirements call for merchants and acquirers alike to rethink their compliance efforts. Staying ahead will require a proactive mindset and tools that simplify risk management. <\/p>\n\n\n\n

For Merchants<\/strong> <\/h3>\n\n\n\n