Visa will retire the Visa Dispute Monitoring Program. See the Visa press release below, shared by our partner Catherine Tong (FCA).
The Visa fraud monitoring programs are retiring. Well, as we know them today (VDMP and VFMP). They will instead be replaced by a newer version of VAMP (Visa Acquirer Monitoring Program). Just a change in name? Well not in Europe at least. From 1 April 2025, fraud and non-fraud counts will be combined, with Acquirer standard ratios dropping to 0.3%. For merchants there will be no warning notifications, instead the excessive threshold will kick in at 0.9% fraud levels. Is this the start of a slippery slope for some merchants to fall into non-compliance? Whilst SCA has helped with third party fraud and fraud levels in Europe have certainly fallen, putting all dispute types together may tip the balance for some. However, it is interesting to note that the Visa press release states "VAMP will transition from non-compliance assessment based enforcement to risk-based enforcement to provide client flexibility and accommodate varying levels of risk appetite." I wonder how these will ultimately be passed on to merchants and how this will change contractual terms around fraud with acquirers? https://lnkd.in/eBKj736e