The VAMP ratio is a calculation Visa uses to measure risk associated with the Visa Acquirer Monitoring Program (VAMP). The VAMP ratio adds TC15s (chargebacks) and TC40s (fraud reports) then divides by the monthly Visa transaction count.
The calculation looks like this:
(TC15 + TC40) ÷ monthly Visa transaction count = VAMP ratio
Visa calculates the VAMP ratio for individual merchants and entire acquirer portfolios — with thresholds for each. Breaching Visa’s thresholds could mean a merchant or its acquirer is enrolled in the program — facing increased scrutiny, penalties, and restrictions on the ability to process transactions.
AltoPay helps merchants monitor VAMP ratios in real time and make suggestions if risk starts to increase. Tools like Ethoca alerts, CDRN, and RDR can help lower VAMP ratios.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
