Skip to main content

Network Monitoring Programs

Last Updated: 2025-02-17 Status: Complete

Card networks operate monitoring programs to identify merchants and acquirers with excessive chargebacks or fraud. Understanding these programs is essential for PayFac risk management.

Quick Reference​

ProgramNetworkMetricThresholdFine Range
VAMPVisaDisputes + Fraud1.5%$4-8/tx
ECPMastercardChargebacks1.5% + 100$1K-200K/mo
EFMMastercardFraud0.5%$500-100K/mo
MATCHAllTerminationN/A5-year ban

Visa Acquirer Monitoring Program (VAMP)​

Program Replacement

Effective April 1, 2025: VAMP replaced both VDMP (Visa Dispute Monitoring Program) and VFMP (Visa Fraud Monitoring Program). All 2026 operations should use VAMP guidelines.

VAMP Overview​

VAMP combines dispute and fraud monitoring into a single program with unified thresholds.

VAMP Ratio Calculation​

VAMP Ratio = (TC40 Fraud Reports + TC15 Disputes) / TC05 Settled Transactions

Key Difference from Legacy: VAMP includes disputes that never became chargebacks (TC15), not just completed chargebacks.

Merchant Thresholds​

RegionThresholdTransaction CountEffective Date
North America1.5% (150 bps)≥1,500 monthlyApril 1, 2026
European Union1.5% (150 bps)≥1,500 monthlyApril 1, 2026
Asia Pacific1.5% (150 bps)≥1,500 monthlyApril 1, 2026
Latin America1.5% (150 bps)≥1,500 monthlyApril 1, 2025
Caribbean1.5% (150 bps)≥1,500 monthlyApril 1, 2025
CEMEA2.2% (220 bps)≥150 monthly + $75KCurrent
April 2026 Threshold Change

The reduction from 2.2% to 1.5% for North America/EU/APAC represents a 32% tightening of acceptable limits. Merchants currently between 1.5-2.2% must remediate before April 2026.

Acquirer Thresholds​

TierPortfolio ThresholdEnforcement Start
Above Standard≥0.5% (50 bps)January 1, 2026
Excessive≥0.7% (70 bps)October 1, 2025

VAMP Fine Structure​

EntityTierFee per Dispute/Fraud
AcquirersAbove Standard$4
AcquirersExcessive$8
MerchantsExcessive$8

VAMP Grace Period​

  • 3 months for first-time offenders within a rolling 12-month period
  • Fines begin in month 4 if thresholds not corrected
  • Must remain below thresholds for 3 consecutive months to exit

VAMP Timeline​

Legacy Visa Programs (Historical Reference)​

VDMP (Retired April 2025)​

TierRatioCountFines
Early Warning0.65%≥75$0
Standard0.9%≥100$0 (months 1-4), $50/dispute (5+)
Excessive1.8%≥1,000$50/dispute (immediate)

VFMP (Retired April 2025)​

TierFraud RateFraud AmountFines
Standard>0.9%≥$75,000$25,000/month (month 5+)
Excessive>1.8%N/A$10,000-$75,000/month escalating

Mastercard Excessive Chargeback Program (ECP)​

ECP monitors merchants with high chargeback ratios and counts.

ECP Thresholds​

TierMonthly ChargebacksRatioBoth Required
ECM≥100≥1.5%YES
HECM≥300≥3.0%YES
Calculation Method

Mastercard uses a lagged denominator: Current month chargebacks ÷ Prior month sales

ECP Fine Schedule​

Months in ProgramECM FineHECM FineAdditional
1$0$0Grace period
2$1,000$1,000-
3$1,000$2,000-
4-6$5,000$10,000+$5/CB after first 300
7-11$25,000$50,000+$5/CB after first 300
12-18$50,000$100,000+$5/CB after first 300
19+$100,000$200,000+$5/CB after first 300

ECP Additional Fees​

Fee TypeAmount
Reporting fee$100
Issuer Recovery Assessment$5/chargeback (beyond first 300, month 4+)

ECP Exit Criteria​

  • Below ECM threshold for 3 consecutive months
  • No probationary period after exit
  • Immediate re-entry if thresholds exceeded again

Mastercard Excessive Fraud Merchant (EFM)​

EFM monitors merchants with high fraud rates.

EFM Entry Criteria (ALL must be met)​

CriterionThreshold
Transaction volume≥1,000 Mastercard transactions/month
Fraud amount≥$50,000 USD/EUR (reason code 4837)
Fraud ratio≥0.5% (50 bps)
3DS usage (non-regulated)<10%
3DS usage (regulated - EU)<50%

Australian Exception: <0.2% ratio AND <$15,000 USD fraud claims

EFM Ratio Calculation​

Fraud Ratio = Current month fraud chargebacks / Prior month sales volume

EFM Fine Structure​

MonthFine Range
1$0 (grace period)
2+$500 - $100,000 (escalates monthly)

EFM Exit Criteria​

  • Below ALL EFM thresholds for 3 consecutive months

MATCH List​

MATCH (Member Alert to Control High-Risk Merchants) is an industry-wide database of terminated merchants.

MATCH Overview​

MATCH Duration​

  • 5 years from placement date
  • Automatic removal after 5 years (unless re-added)

MATCH Placement Timeline​

Acquiring banks must add merchant within 5 days of account termination for qualifying violations.

MATCH Reason Codes​

CodeReasonEarly Removal
01Account Data CompromiseNo
02Common Point of PurchaseNo
03LaunderingNo
04Excessive ChargebacksNo
05Excessive FraudNo
07Fraud ConvictionNo
09Bankruptcy/Liquidation/InsolvencyNo
10Violation of StandardsNo
11Merchant CollusionNo
12PCI-DSS Non-ComplianceYes (with compliance verification)
13Illegal TransactionsNo
14Identity TheftNo

MATCH Impact​

ImpactDescription
Processing deniedCannot obtain new merchant account
Industry-wideAll Mastercard member banks see listing
Visa awarenessVisa processors often check MATCH too
High-risk optionSome high-risk processors work with MATCH merchants (higher fees)

MATCH Removal​

ScenarioRemoval Possible
PCI non-compliance (code 12)Yes, with compliance proof
All other codesNo, must wait 5 years
Error/disputeAppeal process available

Program Comparison​

FactorVAMPECPEFM
NetworkVisaMastercardMastercard
MetricDisputes + FraudChargebacksFraud
Base Threshold1.5%1.5% + 1000.5%
Fine StartMonth 4Month 2Month 2
Exit Requirement3 months below3 months below3 months below
Grace Period3 months1 month1 month

PayFac Program Management​

Monitoring Dashboard​

MetricCalculationAlert Level
Portfolio VAMP ratioTotal disputes/fraud ÷ Total transactions> 0.5%
Portfolio ECP ratioTotal chargebacks ÷ Total sales> 1.0%
Individual merchant ratioPer-merchant calculation> 0.75%
Program proximityCurrent ratio ÷ Threshold> 70%

Remediation Actions​

Sub-Merchant Communication​

StageCommunication
OnboardingExplain thresholds and consequences
WarningFormal notice with remediation deadline
BreachSuspension notice with appeal option
TerminationFinal notice with MATCH warning

Ecosystem Context:

Onboarding Context:

References​

Share: