Network Monitoring Programs
Last Updated: 2025-02-17 Status: Complete
Card networks monitor merchants and acquirers for excessive chargebacks and fraud. Exceeding thresholds triggers program entry, fines, and potential termination. For PayFacs, understanding these programs is critical to protecting your portfolio.
Quick Reference
| Program | Network | Key Threshold | Fine Range |
|---|---|---|---|
| VAMP | Visa | 1.5% (Apr 2026) | $4-8/transaction |
| ECP | Mastercard | 1.5% + 100 CB | $1,000-200,000/month |
| EFM | Mastercard | 0.5% fraud | $500-100,000/month |
| MATCH | Mastercard | Termination list | 5-year ban |
Major Program Change
Effective April 1, 2025: Visa retired VDMP and VFMP, replacing both with the Visa Acquirer Monitoring Program (VAMP). All 2026 documentation should reference VAMP.
Program Overview
Section Contents
Network Programs
- Visa VAMP thresholds and fines
- Mastercard ECP program details
- Mastercard EFM program details
- MATCH list criteria and duration
Merchant Monitoring
- Real-time monitoring dashboards
- Alert systems and thresholds
- Merchant health scoring
Reserve Management
- Rolling vs. fixed reserves
- Reserve calculation methods
- Release criteria and schedules
Quiz
- Self-assessment questions
Critical Thresholds Summary
Visa VAMP (Effective April 2025)
| Region | Threshold | Transaction Count | Effective |
|---|---|---|---|
| North America, EU, APAC | 1.5% | ≥1,500 monthly | April 1, 2026 |
| Latin America, Caribbean | 1.5% | ≥1,500 monthly | April 1, 2025 |
| CEMEA | 2.2% | ≥150 monthly + $75K | Current |
Mastercard ECP
| Tier | Chargebacks | Ratio | Both Required |
|---|---|---|---|
| ECM | ≥100/month | ≥1.5% | Yes |
| HECM | ≥300/month | ≥3.0% | Yes |
Mastercard EFM
| Criterion | Threshold |
|---|---|
| Transaction volume | ≥1,000/month |
| Fraud amount | ≥$50,000 |
| Fraud ratio | ≥0.5% |
| 3DS usage | <10% (non-regulated) |
PayFac Monitoring Responsibilities
Monitoring Metrics
| Metric | Frequency | Alert Threshold |
|---|---|---|
| Chargeback ratio | Daily | > 0.5% |
| Fraud rate | Daily | > 0.5% |
| Individual merchant ratio | Daily | > 1.0% |
| Portfolio ratio | Weekly | > 0.7% |
| Program threshold proximity | Weekly | Within 20% |
Program Entry Prevention
Early Warning Signs
| Indicator | Action Required |
|---|---|
| Single merchant > 0.75% | Implement remediation plan |
| Portfolio trending up | Investigate causes |
| New merchant spikes | Review underwriting |
| Seasonal increase | Pre-position reserves |
Prevention Strategies
- Strict Underwriting - Reject high-risk merchants
- Real-time Monitoring - Catch issues early
- Merchant Education - Best practices for reducing chargebacks
- Quick Termination - Remove problem merchants promptly
- Reserve Management - Protect against losses
Consequences of Program Entry
Related Topics
- Chargeback Management - Reducing chargebacks
- Fraud Prevention - Reducing fraud rates
- PCI Compliance - Data security
Ecosystem Context:
- Card Network Role - Why networks enforce monitoring programs
- Acquiring Banks - Acquirer monitoring obligations
Onboarding Context:
- Ongoing Monitoring - Merchant lifecycle monitoring practices
- Portfolio Risk - PayFac aggregate monitoring