A significant shift in Visa’s chargeback management landscape will take effect on April 1st, 2025, as the Visa Dispute Monitoring Program (VFMP) transitions to the new Visa Acquirer Monitoring Program (VAMP).
This change brings with it a refined focus on acquirer responsibility and enhanced compliance protocols. Here’s what you need to know about VAMP, who it affects, and how merchants can prepare for this evolution.
What is the Visa Acquirer Monitoring Program (VAMP)?
The Visa Acquirer Monitoring Program (VAMP) is designed to streamline and strengthen the oversight of chargeback activity by shifting greater accountability onto acquiring banks—the institutions that process credit card payments on behalf of merchants. This change aims to foster a more collaborative and proactive approach to managing disputes, reducing the burden on merchants, and ultimately improving the overall ecosystem’s efficiency.
Unlike its predecessor, the Visa Dispute Monitoring Program (VFMP), which primarily focused on merchant-centric metrics, VAMP emphasizes an acquirer-centric model. It is intended to ensure acquiring banks implement effective dispute management strategies and work closely with their merchants to resolve issues.
Who Does VAMP Affect?
VAMP directly impacts acquiring banks by placing greater responsibility on them to manage and mitigate chargeback risks. It incentivizes these institutions to invest in robust monitoring systems, effective merchant education, and proactive interventions that prevent disputes from escalating.
For merchants, this transition represents a shift in their chargeback management partner. Rather than dealing directly with the intricacies of the VFMP, merchants will now coordinate more closely with their acquiring banks. This shift means that while merchants remain integral to the process, they will rely more heavily on their acquirer’s expertise and strategies to stay compliant and manage disputes effectively.
What Merchants Need to Do
As April 1st, 2025, approaches, there are critical steps merchants should take to ensure a smooth transition to VAMP:
1. Engage with Your Acquirer:
– Initiate conversations with your acquiring bank to understand how they plan to approach the new program requirements. Ensure they have the tools and expertise necessary to support you in managing disputes effectively.
2. Education and Training:
– Invest in understanding the new roles and processes under VAMP. Updated training for your team on best practices for dispute prevention and resolution will be crucial in adapting to the new system.
3. Strengthen Internal Processes:
– Review and optimize your internal processes for managing chargebacks, focusing on documentation, customer service responses, and transaction accuracy. This will help reduce the incidence of disputes from the outset
4. Monitor Your Metrics:
– While the acquirer will play a significant role, remain vigilant in reviewing dispute metrics and performance indicators that might affect your standing within the program.
5. Leverage Technology:
– Utilize advanced payment technologies and analytics tools to flag potential risks early and enhance your capacity to prevent disputes.
Embrace the Change with Confidence
The shift from VFMP to VAMP marks a pivotal point for chargeback management within the Visa network. As a merchant, leveraging your acquirer’s expertise and resources will be key to navigating this transition smoothly.
By proactively participating in this collaborative effort and maintaining open communication with your acquirer, you can position your business to not only comply with the new requirements but also excel in minimizing disputes and fostering customer satisfaction.
Stay informed, stay prepared, and embrace this opportunity to enhance your dispute management framework with the support of the VAMP initiative.