VAMP and Delivery Chargebacks: How Shipping Insurance Helps
What Visa's VAMP counts, which disputes come from shipping problems, and where insurance at checkout can (and can't) keep them from happening.
Jump to the playbookReviewed by Kyle G., Compliance Auditor · Updated October 2026
Key takeaways
- VAMP counts fraud reports (TC40) plus disputes (TC15), divided by settled card-not-present transactions, in the same month.
- Refunds and dispute wins don't take an event out of the count. Preventing the dispute does.
- Delivery problems mostly show up as Visa reason codes 13.1 (not received) and 13.3 (received damaged).
- Insurance only helps before a dispute exists, only for buyers who opted in, and only for shipping losses. It has no effect on fraud (10.4, TC40s) or "not as described" claims.
- Thresholds, fees and enforcement are set by Visa and applied by your acquirer. Check with your acquirer or processor for the limits that apply to you.
What is Visa's VAMP?
VAMP is the Visa Acquirer Monitoring Program. Visa announced it on August 30, 2024. On April 1, 2025, Visa replaced its separate dispute (VDMP) and fraud (VFMP) monitoring programs with VAMP, one global program that watches card-not-present fraud and disputes at both the acquirer level and the merchant level. It also monitors card testing (enumeration).
Visa ran an advisory period from April 1 to September 30, 2025. Enforcement of the Excessive tiers began October 1, 2025. For a fuller walk-through, read What Is Visa's VAMP? 2026 Guide for Ecommerce Merchants.
How is the VAMP ratio calculated?
VAMP ratio (Visa fact sheet, 2025)
( Fraud reports (TC40) + Disputes (TC15) ) ÷ Settled card-not-present transactions (TC05)
Same calendar month for both numerator and denominator.
- All disputes count, fraud and non-fraud, under every reason code.
- Double counting is possible. A transaction with both a fraud report and a dispute is counted twice, per Stripe.
- Timing: an event counts in the month Visa receives it, not the month you made the sale.
- Refunds and wins don't help. Stripe: "Monitoring programs don't consider refunds when identifying disputes," and they "don't consider dispute outcomes."
- Exclusions: disputes resolved through pre-dispute tools (subject to the timing of Visa's data extract) and fraud reports that qualify for Compelling Evidence 3.0.
What are the VAMP thresholds and dates?
Merchant "Excessive" level
| Region | Ratio | Minimum monthly count (fraud reports + disputes) |
|---|---|---|
| US, Canada, Europe, Asia Pacific | 2.2% (220 bps) until March 31, 2026 1.5% (150 bps) from April 1, 2026 |
1,500 |
| Latin America & Caribbean | 1.5% (150 bps) | 1,500 |
| CEMEA | 2.2% (220 bps) | 150 and USD 75,000 |
The 1,500 is a count of fraud reports plus disputes, not a count of sales. These merchant levels apply when your acquirer is not itself flagged.
Acquirer (portfolio) levels
| Level | Ratio | Enforcement began |
|---|---|---|
| Excessive | 0.70% (70 bps) | October 1, 2025 |
| Above Standard | 0.50% (50 bps) | January 1, 2026 |
Which chargeback reason codes come from delivery problems?
| Code | What the cardholder claims | Type | Can shipping insurance help? |
|---|---|---|---|
| 13.1 Merchandise/Services Not Received | The order didn't arrive by the expected date (includes lost and stolen packages) | Consumer dispute | Yes, by deflection: a covered customer can claim instead of disputing |
| 13.3 Not as Described or Defective | The item arrived damaged, defective or not as described | Consumer dispute | Only for transit damage. Not for defects, quality or "not as described" |
| 10.4 Other Fraud: Card-Absent | "I didn't authorize this purchase" | Fraud | No |
| CE 3.0 (Compelling Evidence 3.0) | An evidence route for 10.4 using prior undisputed transactions on the same card | Fraud defense | No. It's a fraud tool, but a qualifying fraud report is excluded from VAMP |
The issuer picks the reason code, not you. Some "never got it" complaints get coded as fraud, and a fraud report counts no matter how the case ends. Deep dives: 13.1 item not received · 13.3 damaged in transit · porch piracy.
Where does shipping insurance help, and where doesn't it?
Where it can help
- A covered package is lost in transit. The customer files a claim instead of calling the bank.
- A covered package is marked delivered and then stolen. You might win a 13.1 dispute on proof of delivery, but the customer is still out the item. Insurance gives them a path that doesn't run through their bank.
- A covered package arrives damaged in transit.
- It lowers your own cost of replacing lost, stolen or damaged orders.
Where it doesn't
- A dispute that has already been filed. Insurance can't remove it from the count.
- Fraud reports (TC40), 10.4 fraud disputes and card testing.
- Buyers who didn't opt in.
- Customers who go straight to their bank anyway. In Chargebacks911's 2025 Cardholder Dispute Index, "nearly half admit bypassing the merchant entirely."
- "Not as described," defective or quality disputes unrelated to shipping.
Events deflected ≈ D × O × C, where D = delivery-related disputes per month (13.1 plus transit-damage 13.3), O = share of orders that opted in to insurance, C = share of covered customers who claim instead of disputing.
New ratio ≈ (Total events − Events deflected) ÷ Settled CNP transactions
Assume 100,000 settled Visa CNP transactions and 1,800 total events (1.80%), with D = 400, O = 60%, C = 50%. Deflected ≈ 400 × 0.60 × 0.50 = 120. New ratio ≈ 1,680 ÷ 100,000 = 1.68%. In this example the merchant is still above 1.5%. Insurance is one lever, not a fix, and every input here is an assumption, not data.
What is the playbook for fewer delivery chargebacks?
- Collect proof of delivery. Visa's guidance for 13.1 names "Proof of delivery or pick-up, such as certified mail or a carrier's certification that the merchandise was delivered." Ship to the AVS-matched address and keep the order-to-shipment-to-delivery chain for every parcel, including each part of a split shipment.
- Use signature confirmation for higher-value goods. A "delivered" scan alone may not show who received the package.
- Send tracking and a clear expected delivery date. A 13.1 dispute turns on the expected date, and you can defend one by showing the date hasn't passed yet.
- Offer clear, opt-in shipping insurance. Show the price and what it covers, and leave the box unchecked so the customer chooses. InsureShip recommends, and configures by default, an opt-in (unchecked) offer. Established in 2009, InsureShip is licensed by the California Department of Insurance (license #0G55434) and licensed in all 50 states. Its coverage is underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024; source: The Hartford's Navigators fact sheet). It covers loss, damage and theft, including porch piracy, up to $5,000 per shipment.
- Put the claims link in every order and shipping email. A customer who knows where to file (for InsureShip coverage, /pages/file-claim) has less reason to call the bank.
- Answer "where's my order?" messages fast. Reply the same day, check the carrier scan, and offer a claim, replacement or refund before the customer gives up on you.
- Set up pre-dispute tools with your processor. See the table below.
| Tool | What it does | VAMP effect (current reading) |
|---|---|---|
| Rapid Dispute Resolution (RDR, Visa) | Auto-credits a dispute that matches your rules before it becomes a chargeback | Non-fraud disputes resolved this way are excluded. Since Visa's March 2025 change, fraud disputes resolved through RDR or CDRN still count, and so does any fraud report. |
| Order Insight (Visa) | Shares order and delivery details with the issuer while the cardholder is asking | If the cardholder drops it, no dispute is filed |
| CDRN (Visa) / Ethoca Alerts (Mastercard) | Alert before a chargeback so you can refund | Can avoid the dispute if resolved in time. Fraud reports still count. |
Frequently Asked Questions
Does shipping insurance lower my VAMP ratio?
It can lower the number of delivery-related disputes, because covered customers can file an insurance claim instead of a chargeback. It does not remove disputes that are already filed, and it has no effect on fraud reports (TC40), 10.4 fraud disputes or card testing.
Does the shipping insurance charge count toward my VAMP ratio?
No. The insurance charge is processed on InsureShip's merchant account, so it is not counted in your sales or your VAMP ratio. This only describes which ratio the charge falls under. It is not a way to lower your ratio: disputes and fraud reports on your own sales count as usual.
What is the VAMP threshold for US merchants in 2026?
Since April 1, 2026, a US merchant is Excessive at a VAMP ratio of 1.5% or more with at least 1,500 fraud reports plus disputes in the month. Before that date the ratio was 2.2%. Your acquirer may apply stricter limits.
If I refund a customer, does the dispute still count?
Yes. Refunds and dispute wins do not take an event out of the VAMP count. Only preventing the dispute, or resolving a non-fraud dispute through a pre-dispute tool like RDR in time, keeps it out.
Which reason codes are related to delivery?
Mainly 13.1 (Merchandise/Services Not Received) and 13.3 (Not as Described or Defective) when the item arrived damaged. 10.4 is a fraud code, and Compelling Evidence 3.0 is a defense for 10.4.
Does Visa charge $8 per dispute?
Visa's public fact sheet does not list fees. Processors report fees of about $8 per counted event for Excessive merchants. Ask your acquirer or processor what applies to you.
Is this legal or financial advice?
No. This is general information as of October 2026. Card network rules change, so check with your acquirer or processor before making decisions.
Give customers a claim path before they call the bank
InsureShip adds opt-in shipping insurance at checkout on Shopify, WooCommerce, Checkout Champ, Konnektive, Sticky.io and more, or through our API. Established in 2009, backed by Navigators (The Hartford), rated A+ by AM Best (The Hartford's Navigators fact sheet). Pricing averages about $1 per order but varies.
Talk to InsureShipSources
Last checked October 8, 2026. General information, not legal or financial advice. Visa: Introducing VAMP (2024) · Visa VAMP fact sheet (2025) · Visa VAMP update (Oct 2025) · Visa Dispute Management Guidelines (2024) · Stripe: monitoring programs · Checkout.com: VAMP · Merchant Risk Council (Apr 2026) · Chargeback Gurus: RDR change (Mar 2025) · Chargebacks911 Cardholder Dispute Index (2025) · The Hartford: Navigators fact sheet (April 2025)