Fraud rate
Disputes & risk
The ratio of fraud-confirmed transactions (typically tracked via TC40 reports) to total settled transactions. Visa VAMP combines fraud rate and dispute rate into a single combined ratio. Independent fraud-rate monitoring used to be governed by VFMP, now folded into VAMP.
In practice.
Fraud rate is tracked separately from chargeback rate because issuers report confirmed fraud directly to the schemes through TC40 and SAFE data, whether or not a chargeback follows. Visa VFMP monitoring runs on these reports, so a merchant can breach fraud thresholds while their chargeback ratio still looks acceptable.
Related terms: TC40 · VAMP · VFMP · Chargeback ratio
Disputes & risk