Mastercard's wild VAMP ride

Hold on tight, payments folks—Mastercard’s been on a wild ride, strapped into the Visa Acquirer Monitoring Program (VAMP) rollercoaster as it careened through unexpected twists, steep drops, and ultimately a finale that left everyone cheering. Let’s break down how Visa’s VAMP program sent Mastercard—and its Ethoca alerts—on a thrill ride of uncertainty, opportunity, and then a surprising win for the whole payments ecosystem.

The Ride Begins: A Shaky Start

“When Visa’s move makes Mastercard the happiest rider in the park, you know something’s off.”

In May 2024, Visa announced the VAMP program, set to launch in April 2025, consolidating fraud and dispute monitoring into one framework. At first, Visa’s tools—CDRN and RDR—were exempt from VAMP’s TC40 calculations, a move that had Mastercard and Ethoca feeling queasy. Merchants might reduce or remove Ethoca alerts, thinking they were less valuable if Visa’s tools got an exemption from VAMP ratio calculations. The coaster clicked up the first hill, and Mastercard braced for a bumpy ride.

January 2025: The First Big Drop

On January 1, 2025, Visa consolidated CDRN and RDR into a single price tier. This was great for merchants, but a stomach-churning drop for Ethoca. With Visa’s tools now more cost-effective and VAMP incentivized, Ethoca risked losing ground as merchants might cancel or push for discounts. Mastercard gripped the safety bar as the coaster plunged.

Mid-Ride Twists and Turns: Unexpected Revisions

Then came the loop-de-loops! On January 16, in a startling move, Visa pulled CDRN’s exemption from VAMP calculations. Even more shocking, with just weeks before the start of VAMP on March 11, Visa announced RDR resolved TC40 cases would no longer be exempted either. These two revisions to VAMP drastically reduced, or some would argue, eliminated any benefit to using these tools. Merchants, Banks, and Solution Providers who had been prepping for nearly a year to support these tools weren’t happy, but Mastercard? After recovering from this startling announcement, they were grinning ear to ear. With CDRN and RDR resolved disputes now counting toward VAMP ratios, Ethoca alerts gained ground. Merchants started seeing Ethoca as the better bet, and Mastercard enjoyed a thrilling climb to the top of the coaster. When Visa’s move makes Mastercard the happiest rider in the park, you know something’s off.

The Final Turn: A Smooth Finish

Visa clearly heard the feedback. Just two weeks later, on March 25, they announced an extension to VAMP’s advisory period by 90 days, pushing enforcement to October 1, 2025, giving everyone a breather. Then, on March 28, in a quietly whispered update to clients, Visa pulled off a brilliant move: they indicated plans to reinstate exemptions for CDRN and RDR. Furthermore, they also planned to extend them to Ethoca alerts on Visa-issued cards as well.

The Aftermath: A Win for All

This final turn was again an unexpected game-changer. The rollercoaster arrived back where it started, gliding to a smooth stop, and the crowd—merchants, issuers, acquirers, and even Mastercard—cheered and then sighed in relief. Visa restored value to CDRN and RDR, rebuilt trust with their ecosystem, and—here’s the best part—boosted Ethoca’s value in the process. The reality is, while Visa and Mastercard are viewed as fierce competitors, when it comes to fraud and disputes they tend to work together for the greater good. This move likely keeps the FTC happy too, showing these two global titans can share the sandbox and avoid any antitrust concerns.

Mastercard’s ride on the VAMP rollercoaster had it all—nerve-wracking drops, exhilarating climbs, and a finish that left them stronger. Ethoca’s value is secure, merchants have more tools to manage disputes, and the payments ecosystem is now running smoother than ever. Sometimes, even the wildest rides have a happy ending.