VAMP's Hidden Costs: Non-Settled Transactions and TC40 Reports
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Jul 8, 2025
Dive into the complexities of Visa's Acquirer Monitoring Program as the host uncovers hidden costs of non-settled transactions. Learn how TC40 fraud reports can unfairly penalize merchants for fraud beyond their control. Discover the alarming practice of double-counting chargebacks and the broad range of fraud types impacting merchant risk. With insights from industry veteran Rick Clinch, the discussion advocates for fairer fraud monitoring practices, ensuring merchants are equipped to face the evolving landscape of online payment fraud.
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insights INSIGHT
VAMP Double Counts Fraud
Visa's VAMP risk threshold counts fraud twice: once by TC40 reports and once by chargebacks.
This double counting incentivizes costly fraud alerts which still leave merchants vulnerable to penalties.
insights INSIGHT
Issuer Fraud Counts Against Merchants
TC40 reports include issuer-level fraud like identity theft and account takeover, over which merchants have no control.
Merchants are unfairly penalized in VAMP for fraud types outside their visibility or responsibility.
question_answer ANECDOTE
Unfair Chargeback Experience
Karisse Hendrick shared a story of a merchant facing chargebacks due to identity theft and the bank's refusal to hold the cardholder accountable.
She highlights merchants' lack of control over issuer decisions and why it's unfair to penalize them for such chargebacks.
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In this episode of Fraudology Karisse Hendrick dives deep into the latest developments surrounding Visa's Acquirer Monitoring Program (VAMP). As a seasoned e-commerce fraud fighter, Karisse breaks down the complex calculations and hidden implications of VAMP that every merchant, payment processor, and fraud analyst needs to understand. She reveals shocking new information about how TC40 fraud reports are being used in ways that may unfairly penalize merchants for fraud outside their control.
Karisse explains how VAMP's risk threshold is calculated using both TC40 reports and chargebacks, potentially double-counting many fraud instances. She highlights how this incentivizes the use of costly fraud alerts while still leaving merchants vulnerable. Most alarmingly, Karisse shares insights from industry veteran Rick Clinch exposing how TC40 reports include fraud types like identity theft and account takeover that occur at the issuer level, yet still count against merchants in VAMP calculations. She questions the fairness of holding merchants accountable for fraud they have no visibility into or control over.
The episode provides a masterclass in the intricate details of payment fraud monitoring, arming listeners with crucial knowledge as VAMP goes into effect. Karisse's passion for merchant advocacy shines through as she calls for more equitable fraud monitoring practices. Whether you're a fraud analyst, risk manager, or e-commerce leader, this episode is essential listening to understand the changing fraud landscape. Tune in to gain insider knowledge that could save your business from unfair penalties and empower you to push for positive change in the industry.
Fraudology is hosted by Karisse Hendrick, a fraud fighter with decades of experience advising hundreds of the biggest ecommerce companies in the world on fraud, chargebacks, and other forms of abuse impacting a company's bottom line.
Fraudology Podcast with Karisse Hendrick