Visa Chargeback Threshold 2026: What VAMP Means for Your Business
In 2026, Visa measures merchants under the Visa Acquirer Monitoring Program (VAMP). Its merchant 'Excessive' threshold is a ratio of 2.2%, scheduled to drop to 1.5% from April 1, 2026 in most regions, and it applies once you have at least 1,500 combined fraud reports and disputes in a month. The ratio adds fraud reports to disputes, so a business with modest chargebacks can still cross the line.
Key takeaways
- VAMP replaced Visa's older dispute and fraud monitoring programs in 2025. The old 0.9% and 100-dispute figures are obsolete.
- The VAMP ratio counts fraud reports (TC40s) plus disputes (TC15s), divided by settled transactions. Fraud reports count even if the cardholder never files a chargeback.
- Per Visa's published schedule, the merchant Excessive threshold falls from 2.2% to 1.5% on April 1, 2026, with a minimum of 1,500 combined fraud reports and disputes per month.
- Your acquirer is measured on its whole portfolio at much tighter ratios, so its internal limits, reserves, and fees usually reach you before Visa's do.
- Visa updates program rules, so confirm current thresholds, counting rules, and pass-through fees with your processor.
What changed: from VDMP to VAMP
Most articles that rank for this query still cite the Visa Dispute Monitoring Program, with its 0.9% ratio and 100-dispute trigger. Visa retired that program, along with its separate fraud monitoring program, and replaced both with VAMP starting in 2025. If your internal alerts are still set to 0.9% of chargebacks, you are watching the wrong number.
VAMP is built around a single combined ratio. Visa has also said it watches enumeration, which is card testing (bots running stolen card numbers through your checkout), under separate published thresholds.
The program's name matters too. VAMP measures acquirers, the banks that sponsor your merchant account, and holds them accountable for the merchants they board. That has practical effects for you, covered below.
How the VAMP ratio is calculated, with worked examples
Here is the formula as Visa has published it: VAMP ratio = (fraud reports + disputes) ÷ settled transactions, measured monthly. Fraud reports are TC40 records filed by the card issuer when a cardholder says a charge was fraudulent. Disputes are TC15 chargeback records. Visa's definition centers on card-not-present activity, so ask your processor exactly which transactions make up your denominator. For the full formula mechanics, see our Chargeback Ratio Calculator & Formula guide.
Example 1, with made-up numbers. An online pet supply store settles 40,000 Visa transactions in a month. It receives 180 disputes and 260 fraud reports. Its VAMP ratio is 440 ÷ 40,000 = 1.1%. That is below 1.5%, and its 440 count is also below the 1,500 minimum. The store is not in the Excessive tier, but it is closer to the line than its chargeback numbers alone suggest.
Example 2, with made-up numbers. A subscription box company settles 150,000 transactions, with 900 disputes and 1,500 fraud reports. Measured on chargebacks alone, its ratio is 0.6%, which looks comfortable. Its VAMP ratio is 2,400 ÷ 150,000 = 1.6%, and its count of 2,400 is above 1,500. Under the 2.2% threshold it was safe. From April 2026, at 1.5%, it would be classified Excessive without a single extra dispute.
Estimates are based on published industry averages and are not a quote. Actual rates depend on card mix, ticket size, industry, and underwriting.
What most articles get wrong: low chargebacks do not mean you are safe
The most common mistake is treating the Visa threshold as a chargeback threshold. Under VAMP, a fraud report counts against you when the issuer files it, whether or not the cardholder ever disputes the charge. Issuers often file TC40s for fraud the cardholder never escalates, or that you already refunded. Those reports still go into your numerator.
This catches merchants in two ways. First, refunding a suspicious order does not erase the fraud report if the issuer has already filed it. Second, a card-testing attack can produce a wave of fraud reports on small authorizations you barely noticed. Your chargeback dashboard can look fine while your VAMP ratio climbs.
The fix starts with visibility. Ask your processor whether you can see TC40 fraud report counts alongside disputes. If your reporting only shows chargebacks, you are only seeing part of your ratio.
What crossing the threshold actually costs
Under VAMP, Visa charges per-dispute fees to acquirers for merchants in the Excessive tier. Acquirers typically pass those fees through to the merchant. Ask yours for the exact pass-through amount in writing, because it varies and Visa revises its fee schedule. These fees sit on top of what you already pay: the per-item chargeback fee on every dispute, the lost merchandise or service, and the refunded sale itself.
The bigger costs are usually controls on your cash, not fees. To protect itself, an acquirer can impose a rolling reserve. Example, with made-up numbers: on $500,000 in monthly volume, a 10% rolling reserve held for 180 days withholds $50,000 each month. That adds up to $300,000 tied up before the first release. Acquirers can also delay deposits, cap your monthly volume, or require you to enroll in a remediation plan.
If problems persist, the acquirer may close the account. Termination can place you on industry-shared lists that make it harder to get a new merchant account. That is why the realistic goal is to stay well under the line, not just under it.
Estimates are based on published industry averages and are not a quote. Actual rates depend on card mix, ticket size, industry, and underwriting.
Run your own numbers
Score your chargeback exposure in 2 minutes and see which fixes matter most.
Open the free Chargeback Risk ScorecardWhy your acquirer's limit bites before Visa's
Visa's published acquirer thresholds are well below the 1.5% merchant figure, and they apply to the acquirer's entire portfolio. An acquirer with a handful of risky merchants can push its whole portfolio over the line. So acquirers set internal limits per merchant, often stricter than Visa's, and start reviews, reserves, or pricing changes before you reach Visa's Excessive tier.
In practice, the threshold you need to know is the one in your merchant agreement and your acquirer's risk policy. Ask your processor directly what ratio triggers a review, and whether it counts fraud reports. If you are in eCommerce, subscriptions, or a high-risk vertical, assume the internal limit is tighter than Visa's.
Score your exposure before April 2026
Before you change anything, get a baseline. Our free Chargeback Risk Scorecard (https://touchsuite.com/tools/chargeback-risk-scorecard) asks about your sales channel, billing model, refund policy, descriptor, and fraud tools, then scores your chargeback exposure in about two minutes. You see your score and top risk factors right away. If you want the full breakdown of which fixes matter most for your business, you can request it at the end.
Use the score alongside your real numbers. Pull last month's settled Visa transactions, disputes, and fraud reports from your processor and run both examples above with your own figures. If you are within a few tenths of a point of 1.5%, treat it as urgent.
Moves that specifically lower a VAMP ratio
Our How to Reduce Chargebacks guide covers prevention broadly. A few moves matter more under VAMP because of how it counts. First, use Visa's pre-dispute tools. Per Visa's published rules, disputes resolved through Rapid Dispute Resolution are excluded from the dispute count, and Order Insight can stop a confused cardholder from filing a dispute at all. Confirm the current treatment with your processor.
Second, attack card testing, since it inflates fraud reports. Rate-limit authorization attempts, add bot protection at checkout, and require CVV and address verification. Third, make your billing descriptor match the name customers know, and send clear receipts and renewal reminders. 'I don't recognize this charge' often starts as a fraud report.
Finally, track your full VAMP ratio monthly, fraud reports included, not just chargebacks. If you want help reading your statement or setting up dispute tools, talk to a payments specialist at https://touchsuite.com/contact.
Frequently asked questions
What is the Visa chargeback threshold in 2026?
Under VAMP, a merchant is classified Excessive when its ratio of fraud reports plus disputes to settled transactions reaches the published threshold and its combined count is at least 1,500 in a month. The threshold is scheduled to fall from 2.2% to 1.5% on April 1, 2026 in most regions. Confirm the current figure with your processor.
Is the old 0.9% / 100 dispute threshold still used?
Not by Visa. That came from the Visa Dispute Monitoring Program, which VAMP replaced. Your acquirer may still use its own internal limits at or below that level, so check your merchant agreement.
Do refunded orders still count against my VAMP ratio?
If the issuer has already filed a fraud report (TC40), refunding the order does not remove that report from your count. Refunding before the cardholder contacts their bank can prevent a dispute, but it may not prevent a fraud report.
Do Rapid Dispute Resolution cases count as disputes under VAMP?
Per Visa's published rules, disputes resolved through Rapid Dispute Resolution are excluded from the VAMP dispute count, though any related fraud report can still count. Rules can change, so confirm current treatment with your processor.
What happens if I go over the threshold?
Visa can charge your acquirer per-dispute fees, which are usually passed through to you. Your acquirer may also impose rolling reserves, hold deposits, cap your volume, require a remediation plan, or close the account if the ratio stays high.
How we put this together
Thresholds, counting rules, and program names in this guide reflect Visa's published VAMP materials as publicly reported for the 2025 launch and the April 1, 2026 threshold change. These include the 2.2% merchant Excessive threshold, the scheduled drop to 1.5%, and the 1,500-count minimum. Visa can revise program rules, regional thresholds, and fees, and some regions follow different schedules. Confirm current figures with your acquirer or processor before acting. All merchant transaction counts, dispute counts, reserve percentages, and dollar amounts are made-up examples for illustration, not industry statistics or TouchSuite terms. The Chargeback Risk Scorecard produces an estimate from your answers and the tool's stated assumptions, not an underwriting decision. On your own statements, check your settled Visa transaction count, your dispute count, and whether your processor reports TC40 fraud counts. Also check your merchant agreement for any internal ratio limits and reserve terms. Estimates are based on published industry averages and are not a quote. Actual rates depend on card mix, ticket size, industry, and underwriting.
Estimates are based on published industry averages and are not a quote. Actual rates depend on card mix, ticket size, industry, and underwriting.