Merchant Fraud Journal’s Post

Visa is evolving its compliance landscape with the upcoming Visa Acquirer Monitoring Program (VAMP), set to streamline fraud and dispute monitoring from April 1, 2025. 🔄 This shift signifies a major overhaul, introducing updated metrics, stricter thresholds, and a risk-based enforcement strategy to better equip merchants against fraud. The new system promises a more secure payment ecosystem, with tools like OneERS to aid in performance management and compliance. For a deep dive into how these changes will impact your business and to stay ahead of the curve, read the latest insights on Merchant Fraud Journal: https://lnkd.in/djGpwuED (written by: Ben Herut)

Visa reVAMPs monitoring program —- VFMP and VDMP, the fraud and dispute monitoring programs are being merged and the new program is called VAMP. It releases in April next year. We have been discussing it at the MRC | Merchant Risk Council for the past month…what does it mean? In a nutshell there isn’t enough information out yet to know if it’s a good thing or a bad thing for merchants - the devil will be in the calculation details. That said it promises to not count items that were deflected or refunded, can that technically be done? If it can that’s a positive improvement for everyone. What are your thoughts on this one?? I found a decent write up on it from David DeCorte that is worth a read…https://lnkd.in/g6-ad2tN.

Introducing our evolved Visa Acquirer Monitoring Program, which makes it easier for our clients to deter fraud and manage disputes 

💳 Great read on the rising impact of friendly fraud on merchants. AI-based scoring systems and data sharing help reduce fraud and provide a seamless digital payment experience. #FriendlyFraud #Visa #DigitalPayments

How to Avoid Penalties? Key Visa and Mastercard Rules for High-Risk Adult Content Merchants Visa and Mastercard have implemented strict monitoring rules for adult content online processing, aimed at reducing fraud and ensuring transparency. These rules are part of a broader effort to manage high-risk industries, such as adult entertainment, and involve detailed Know Your Customer (KYC) protocols. 🔸KYC: Platforms must ensure they collect and verify customer information to minimize fraud risks. This includes validating identity documents, implementing address verification systems (AVS), and using multi-factor authentication. 🔸Transaction Monitoring: Visa and Mastercard require close monitoring of all transactions to detect irregularities, prevent unauthorized activities, and ensure compliance with regulations. This involves using fraud detection systems that track transaction patterns, chargeback rates, and unusual behavior in real-time. 🔸Compliance Audits: Both card networks enforce regular audits for platforms in high-risk sectors. These audits check whether merchants are adhering to card scheme rules, such as clearly displaying billing descriptors and offering clear, upfront terms of service to customers. 🔸Chargeback Management: Platforms must also demonstrate robust chargeback mitigation strategies, including offering transparent refund policies and a clear support system for disputes. These measures help reduce the risk of excessive chargebacks, which can lead to penalties or termination of services. To stay compliant, platforms must implement real-time monitoring, fraud detection tools, and adhere strictly to KYC processes. Following these rules not only minimizes chargebacks but also ensures the long-term sustainability of a business within the adult entertainment industry. Interested in a FREE audit? DM 📩 #AdultEntertainment #Visa #Mastercard #KYC #Compliance #FraudPrevention #HighRisk

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

Visa's acquisition of Featurespace, a top provider of Fraud Transaction Monitoring services for banks, acquirers, payment service providers, and enterprise merchants, such as airlines, should prove to be an excellent acquisition. The combination of Featurespace's expertise in fraud and AI/ML capabilities with Visa's extensive global reach and payment data has the potential to create advanced fraud and risk management solutions within the digital payments ecosystem. https://lnkd.in/e8JB8ZmM Banking & Payments Federation Ireland Fintech Ireland FinTech & Payments Association of Ireland MRC | Merchant Risk Council

Learn how Visa's Fraud Monitoring Program works, its fines for high fraud-to-sales ratios, and strategies for merchants to avoid or exit the program.

The rise of digital payments has expanded opportunities for friendly fraud. By taking advantage of zero liability policies consumers are not just eating into the dollar amount but also operational cost of merchants. During peak shopping periods, consumers are intentionally exploiting the financial system with fraudulent purchases. Identifying the first party misuse has become crucial to combat friendly fraud. Merchants are adopting data sharing and compelling evidences to protect against friendly fraud at the first party misuse. Read more to understand how merchants can allocate resources effectively to reduce legitimate disputes. #MerchantWarrior #payments #merchants

Learn how Visa's Fraud Monitoring Program works, its fines for high fraud-to-sales ratios, and strategies for merchants to avoid or exit the program.