Merchants unaware of Visa VAMP compliance thresholds

Chargebacks911 has published research indicating that many merchants do not know how close they are to Visa's VAMP compliance thresholds. The findings are based on a survey of more than 250 merchants.

Nearly one-third of respondents could not say whether changes to the Visa Acquirer Monitoring Program were affecting their business. Only 20% said they had been directly affected, while 26.8% said they actively monitored the TC40 fraud records that feed into their VAMP chargeback ratio.

The figures come as retailers prepare for the Golden Quarter, when dispute volumes across retail and eCommerce typically rise. Merchants already near Visa's thresholds could see their compliance position worsen during that period without realising it.

VAMP combines Visa's two existing chargeback monitoring programmes into a single framework, using revised risk thresholds and broader compliance expectations for acquirers and merchants.

The survey also pointed to a wider gap in understanding of card network rules. More than half of merchants said they had little to no knowledge of those rules overall, while 23% described themselves as very informed.

Among small businesses, the share calling themselves very informed fell to 17.4%. That suggests smaller merchants may be less prepared to track whether they are operating within acceptable card network limits.

Rising pressure

Peak trading periods often bring higher transaction volumes, more refund requests and more disputes. In that environment, monitoring fraud and chargeback data becomes more important for merchants at risk of breaching card scheme thresholds.

"Merchants heading into Golden Quarter without visibility of their VAMP standing are taking a risk they may not fully understand," said Monica Eaton, Founder and Chief Executive Officer of Chargebacks911.

"Dispute volumes typically rise during peak trading periods. For merchants already approaching thresholds, that increase could push them into territory that carries real consequences. The time to understand your position is before the peak, certainly not after."

A lack of direct visibility can leave merchants exposed even when some oversight exists elsewhere in the payments chain. Formal notices from acquirers or card schemes may arrive only after a merchant's ratios have already deteriorated.

"You cannot manage a compliance threshold you don't know you're approaching," Eaton said.

"VAMP is a live program with real consequences for merchants who find themselves on the wrong side of the thresholds it sets. The merchants most at risk right now are not necessarily those with the highest dispute volumes but those with the least visibility into where those volumes are heading."

Knowledge gap

The findings underline how technical card network compliance remains for many merchants, particularly smaller operators. Rules governing fraud ratios, dispute rates and acceptable operating thresholds can affect a merchant's standing with acquirers and payment processors.

The issue is no longer simply administrative. As card schemes tighten monitoring, merchants that fail to track relevant data may find their status with payment partners changing in ways that are difficult to reverse.

That challenge is compounded by assumptions about responsibility. Some merchants may believe their acquirer is watching compliance metrics, but the exposure still sits with the merchant if thresholds are crossed.

"The challenge with compliance programs is that merchants often assume someone else is watching," Eaton said.

"Sometimes an acquirer provides some level of oversight, but the merchant still carries the exposure. Finding out you have a problem through a formal notice rather than through your own monitoring means the opportunity to act earlier has already been lost."

Chargebacks911 said its field report was drawn from proprietary survey data and focused on merchant awareness of dispute and fraud monitoring. Founded in 2011, the company works in chargeback management and dispute resolution across the payments sector.

The research adds to growing scrutiny of how merchants manage fraud and disputes as card networks refine compliance regimes. For businesses entering a period of heavier consumer spending, the data suggests uncertainty over basic monitoring remains widespread.

"My advice to merchants is not to wait for a notice," Eaton said. "Monitor the data that determines your standing before anyone else flags it. That is the difference between managing compliance and being managed by it."