What is the Visa Dispute Monitoring Program?

The Visa Dispute Monitoring Program (VDMP) was Visa’s previous method of tracking dispute activity of merchant accounts. It involved monthly monitoring of disputes and dispute-to-sales ratios to raise concerns with the acquirer and merchant parties if dispute levels exceeded the thresholds. Since the VDMP, Visa has introduced a new VAMP, which combines all regulations from the VAMP, VFMP, and VDMP programs and sets out the new dispute monitoring framework and procedures for the card network.

Under VDMP, Visa kept merchants on a list of active merchant accounts; dispute volume was monitored monthly. Merchants exceeding predefined thresholds were in monitoring tiers, and acquirers were to handle merchants by helping them reduce disputes. The program also included disputes and fraud in the dispute analysis. The factors involved are: transaction identification, billing disagreements or cancellations, fulfillment considerations, and reports of unauthorized transactions.

The legacy program used both a dispute ratio and a minimum monthly dispute count. Commonly documented VDMP levels were:

These figures are historical reference points, not the thresholds a merchant should monitor today.

After changing separate monitoring programs and replacing them with the new integrated Visa Acquirer Monitoring Program (VAMP), Visa announced a broader monitoring and risk assessment mechanism that would cover acquirers and merchants, if applicable.

Visa’s core VAMP metric is count-based:

VAMP Ratio = [Fraud (TC40) + Disputes (TC15)] ÷ Settled Transactions (TC05)

In mid-2026, Visa’s merchant threshold criteria for Asia Pacific, Canada, the European Union, and the United States will be reconfigured as a VAMP Ratio, an indicator based on two variables: (1) the number of fraud-and-dispute transactions, and (2) Visa’s present parameter for merchant dispute rate growth. 

The VAMP Ratio will reach 150 basis points, or 1.5%, along with 1,500 monthly fraud-and-dispute events. This 150-basis-point level will take effect in these regions on April 1, 2026. Merchants should check with their acquirer, processor, or Visa representative about which thresholds apply to them.

It is relevant for merchants to monitor their score under the new system, given that the legacy chargeback ratio alone may not provide a comprehensive assessment.
Some of the routine monthly checks include:
• Check whether you have reported fraud and disputes.
• Track settled card-not-present transactions that meet the criteria for a specific case.
• Separate recurring billing, cancellation, fraud, and other disputes.
• See if there are large changes by product type, geography, or billing type.
• Know the extent to which pre-dispute resolutions and other relevant exclusions will be reflected in the case reporting.

Mastercard additionally oversees an Excessive Chargeback Program (ECP) unique to its operations. A merchant’s status as an Excessive Chargeback Merchant (ECM) or a High Excessive Chargeback Merchant (HECM) is based on chargeback levels and specific thresholds. Mastercard is also developing its own methods and standards for calculating and setting thresholds; therefore, Visa and Mastercard ratios are two completely different sets of ratios and should not be used where the other is relevant.