Chargebacks Aren’t Your Only Problem: Why Fraud Count Now Puts Your MID at Risk

Jul 15, 2025

For years, merchants have focused their risk management efforts on controlling chargebacks—and for good reason. Excessive chargebacks can lead to fines, monitoring programs, and even termination of merchant accounts. But in 2025, Visa has made it clear: chargebacks are no longer the sole metric that matters. Under the new Visa Acquirer Monitoring Program (VAMP) rules, high fraud counts alone can now trigger serious consequences—even if your chargeback rate is within acceptable limits.

In this article, we break down the shift, what it means for your merchant account (MID), and how to stay ahead.

What Is VAMP and Why Does It Matter?

VAMP is Visa’s updated risk monitoring program, launched to tighten fraud control across its ecosystem. Historically, merchants were flagged primarily for excessive chargebacks (over 0.9%). Now, Visa has added a standalone fraud monitoring track— and merchants with high fraud volumes and fraud-to-sales ratios over 1.5% can be penalized regardless of their chargeback count.

The VAMP ratio for merchants is 1.5% starting October 2025, with potential reductions to 0.9% in 2026. Merchants with very high dispute volumes—historically over 1,000 cases per month—combined with elevated fraud ratios are typically prioritized for enforcement.

Note: The thresholds below are from Visa’s previous VFMP/VDMP programs for reference. VAMP now uses a consolidated fraud ratio calculation.

Former & current monthly thresholds below:

Program Level	Former Monthly Threshold	Current Monthly Threshold (Effective 6/1/25)
Early Warning	≥ 20 bps to < 30 bps	≥ 40 bps to < 50 bps
Standard	≥ 30 bps to < 50 bps	≥ 50 bps to < 70 bps
Excessive	≥ 50 bps	≥ 70 bps
Merchant Excessive	≥ 150 bps¹≥ 90 bps²	≥ 220 bps¹≥ 150 bps²

*bps = basis points
¹Applicable threshold in the Asia-Pacific, Canada, Middle East, Africa, Europe, and US markets.
²Applicable threshold in the Latin American market.

If you exceed these thresholds—even with a chargeback rate under 0.9%—you could be placed in Visa’s High-Risk Fraud Monitoring Program, leading to brand damage, network fees, and even a terminated MID.

Why This Is a Game-Changer

For many high-risk, eCommerce, and subscription-based businesses, chargebacks were the primary concern. Fraud often flew under the radar, or was treated as the cost of doing business. Under the new VAMP rules, ignoring fraud means risking your processing privileges.

Here’s how this shift is reshaping the industry:

Processors are tightening underwriting standards. Merchants previously operating in gray areas are now seeing midterm reviews and early terminations based on fraud metrics alone.
ISOs and PSPs are increasing merchant monitoring. Expect more frequent performance reviews, mandatory fraud mitigation plans, and tech stack audits.
Merchants must invest in fraud prevention tools. Passive monitoring is no longer enough. Tools like device fingerprinting, real-time AI fraud scoring, and dynamic 3DS are becoming essential.

Real-World Impact: Your MID Is Now More Fragile

Merchants who fall into these fraud thresholds may face:

Immediate enforcement under Visa’s Acquirer Monitoring Program (VAMP)
Hefty monthly fines if they fail to exit the program within the allotted timeframe
Processor scrutiny that can lead to frozen funds or early termination
Reputation hits that make securing a new MID harder

In the past, you could argue, “Our chargebacks are under control.” In 2025, that’s no longer enough.

How to Protect Your Merchant Account

To stay ahead of the curve, merchants should proactively:

Audit your fraud controls monthly – Track declines, manual reviews, velocity checks, and BIN-level analysis.
Upgrade your fraud stack – Implement tools that go beyond CVV and AVS, including AI-based scoring and behavioral analytics.
Monitor your fraud-to-sales ratio – Use your CRM, processor reports, or third-party dashboards to get accurate readings.
Train your team – Fraudulent orders can come through customer service and sales teams too. Frontline awareness is crucial.
Work with a risk-savvy processor – Not all acquirers offer the same level of visibility and support when it comes to fraud thresholds.

Final Thoughts: It’s Time to Rethink Risk

Visa’s new rules are not a temporary crackdown—they represent a permanent shift in how risk is managed across the payments industry. If you’re still only tracking chargebacks, you’re operating with blind spots. Fraud is no longer just a financial loss—it’s a threat to your ability to process payments altogether.

Protecting your MID in 2025 means taking a dual approach: combat chargebacks AND fraud with equal intensity.