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Visa’s VAMP Alert: Why Shopify Is Closing Merchant Accounts

By Chase Nightingale

The ecommerce landscape is no stranger to change, but the recent wave of sudden account terminations by Shopify Payments—triggered by Visa’s new Acquirer Monitoring Program (VAMP) that took effect on April 1, 2025—has left many merchants scrambling for answers and new payment solutions. Shopify merchants are reporting this concerning trend across social media, noting minimal warning or explanation before their accounts are closed.

Faced with millions of merchants to manage, Shopify Payments had to clean up their merchant portfolio to avoid significant network penalties from Visa, resulting in unexpected account closures and raising urgent questions about how to safeguard businesses from future risks.

What Is VAMP and Why Should Shopify Merchants Care?

VAMP represents a major shift in how Visa monitors merchant risk. The program consolidates the previously separate Visa Dispute Monitoring Program (VDMP) and Visa Fraud Monitoring Program (VFMP) into a unified framework.

The Critical Changes That Affect Your Business:

  • A New Risk Calculation Formula: VAMP considers ALL chargebacks—both fraud AND non-fraud—plus early fraud warnings
  • Lower Thresholds: The “Excessive” VAMP ratio is currently set at 1.5% but will drop to 0.9% starting January 1, 2026
  • Higher Stakes: Once the advisory period ends (October 1, 2025), merchants exceeding thresholds will face fees of $10 per disputed transaction

Most importantly, many Shopify merchants being terminated don’t understand why it’s happening. They haven’t been tracking VAMP thresholds or TC40 data (fraud reports). They simply went from processing normally to having their accounts closed.

How VAMP Ratios Are Calculated

The VAMP ratio is determined by adding:

  • Reported fraudulent transactions (sourced from TC40 data)
  • Non-fraud disputes (including reason codes 11, 12, and 13, or TC15 messages)

This sum is then divided by the number of settled transactions in the same month. Only card-not-present transactions (which make up the majority of Shopify transactions) are included in this calculation.

Important note for Shopify merchants using 3DS: When 3D Secure is used, the fraud chargeback may not be posted against you, but the TC40 is still filed on fraudulent transactions. To accurately calculate your VAMP ratio, you must request your TC40 data directly from your payment service provider.

Why Shopify Is Taking Drastic Action Now

Shopify Payments is managing millions of merchants across its platform. VAMP has forced them to either clean up their merchant portfolio or face substantial network penalties from Visa.

While it seemed unlikely that major payment processors would terminate so many merchant accounts, the financial risk of non-compliance has made this the more economical choice. Shopify appears to be prioritizing its relationship with card networks over maintaining merchants with higher risk profiles.

What Shopify Merchants Need to Do Now

If you’re a Shopify merchant concerned about VAMP compliance (or if you’ve already been terminated), here’s what you need to do:

1. Understand Your Current Risk Profile

  • Request access to your TC40 data from your payment processor
  • Monitor ALL chargebacks, not just fraud-related ones
  • Track early fraud warnings through your payment dashboard

2. Implement Stronger Fraud Prevention

  • Consider implementing 3D Secure (though remember TC40s still count)
  • Use address verification services (AVS) and card verification values (CVV)
  • Implement velocity checks and device fingerprinting
  • Review and update your fraud screening rules

3. Improve Customer Communication

  • Ensure your merchant name appears clearly on credit card statements
  • Send shipment notifications with tracking information
  • Provide clear refund policies and responsive customer service
  • Make cancellation processes straightforward for subscription services

4. Have a Backup Processing Solution Ready

  • Research alternative payment processors that understand your business model
  • Consider implementing multiple payment methods to reduce dependency on a single provider
  • Evaluate the cost-benefit of maintaining redundant payment processing capabilities

The Opportunity for Merchants Who Adapt

For ISOs and payment processors, this Shopify situation represents an opportunity: thousands of merchants suddenly need new processing solutions. However, these merchants need more than just a new account—they need education and robust solutions to prevent future VAMP issues.

At PayRio, we’re helping merchants:

  • Visualize VAMP rates alongside traditional chargeback metrics
  • Analyze by card type and chargeback reason
  • Identify risk drivers across payment service providers

Conclusion

The implementation of VAMP is reshaping the payment processing landscape, with Shopify’s recent account closures being just the beginning. As thresholds become stricter in 2026, merchants across all platforms will need to prioritize their chargeback and fraud prevention strategies.

By understanding these new rules, monitoring the right metrics, and implementing proper prevention measures, your business can not only survive these changes but thrive in an environment where many competitors may be struggling to adapt.

Don’t wait until you receive an account termination notice—take proactive steps today to secure your payment processing capabilities for the long term.

  • Chasen Nightingale

    Chasen Nightingale is the Head of Marketing at PayRio, where he leads all facets of marketing, including content strategy, demand generation, partnerships, and brand development. He oversees PayRio’s go-to-market efforts across digital channels, driving growth through social media, email marketing, SEO, and strategic partnerships.
    Since joining PayRio, Chase has led the development of the company’s website and content engine, improving search rankings and increasing organic traffic through consistent, high-quality content. He manages multi-channel campaigns across LinkedIn, Twitter, and email, and produces marketing initiatives that strengthen brand visibility and engagement.
    Chase also plays a key role in expanding PayRio’s presence in high-risk and regulated industries, including cannabis payments, by securing speaking opportunities, podcasts, and industry partnerships for leadership. His work sits at the intersection of marketing, sales, and fintech, helping scale PayRio’s reach and drive revenue growth.