MerchantGreatBREAKING: Major VAMP carve-out revealed
Updated: August 22, 2025 | Source: Visa official documentation
Brazil, Chile & India - The VAMP Exemption Nobody's Talking About
Brazil Merchants: DOMESTIC Transactions EXCLUDED from VAMP (It's Official)
The Game-Changing Discovery
Buried in Visa's official VAMP documentation is this critical statement:
"Programs for Brazil, Chile, and India will be announced later."
This means domestic transactions in these countries are NOT subject to VAMP penalties until Visa announces specific local programs.
Brazil VAMP Resources:
What This Actually Means for Brazilian Merchants
EXEMPT: Domestic Brazil Transactions
INCLUDED: Cross-Border Transactions
The Practical Impact
For a typical Brazilian ecommerce merchant:
- 80% domestic sales: Exempt from VAMP
- 20% international: Subject to VAMP
- Result: Only international portion at risk
Example Calculation:
Chile & India: Same Exemption Applies
Chile Domestic Processing:
- Domestic CLP transactions: Exempt
- Cross-border: Subject to LAC 1.5% threshold
- Local program: To be announced
India Domestic Processing:
- Domestic INR transactions: Exempt
- Cross-border: Subject to AP thresholds (2.2% until Apr 2026)
- RBI regulations still apply separately
But Wait - You Still Face Other Compliance
Brazil: Pix MED 2.0 Still Applies
India: RBI Compliance Remains
- RBI mandate for Additional Factor Authentication
- Separate dispute resolution timelines
- Local payment method regulations
Chile: Local Regulations Continue
- Consumer protection laws
- Peso transaction rules
- Banking compliance separate from VAMP
Strategic Implications for Exempt Countries
Advantage: Breathing Room
- No immediate October 1st crisis for domestic
- Time to improve before local programs launch
- Can focus on other compliance (Pix MED, RBI)
Risk: The Other Shoe Will Drop
- Visa WILL announce local programs eventually
- Could be stricter than global VAMP
- May include local currency penalties
Opportunity: Competitive Edge
- Market to domestic customers worry-free
- Highlight exemption in sales pitches
- Build market share while others panic
Action Plan for Exempt Countries
For Brazilian Merchants:
- Verify your processing split (domestic vs. international)
- Focus on Pix MED 2.0 compliance (tighter thresholds)
- Monitor international ratios for VAMP
- Prepare for eventual local program
For Indian Merchants:
- Maintain RBI compliance (still enforced)
- Track cross-border separately
- Watch for RBI-Visa alignment
For Chilean Merchants:
- Document domestic exemption with acquirer
- Monitor LAC regional updates
- Prepare systems for future split tracking
The Million-Dollar Question
When will Visa announce local programs?
Industry speculation:
- Brazil: Likely Q1 2026 (after Pix MED 2.0 settles)
- India: Possibly aligned with RBI fiscal year
- Chile: Could be packaged with broader LAC update
Bottom Line for Exempt Countries
You've been given a gift - use this time wisely. While others scramble for October 1st, you can:
- Improve systems methodically
- Negotiate better terms
- Build competitive advantage
But don't get complacent. When local programs launch, they might be stricter than global VAMP. The exemption is temporary relief, not permanent immunity.
Document your exemption status with your acquirer TODAY to avoid confusion on October 1st.
Frequently Asked Questions
Are Brazilian domestic transactions exempt from VAMP?
Yes, domestic transactions in Brazil are exempt from VAMP penalties until Visa announces a local program. Cross-border transactions remain subject to VAMP with 1.5% threshold.
What about Pix MED 2.0 compliance?
Pix MED 2.0 remains active and enforced separately from VAMP, with stricter thresholds: Green ≤0.3% (8% reserve), Yellow 0.31-0.6% (12% reserve), Red >0.6% (16-20% reserve).
How do I separate domestic from cross-border transactions?
Work with your acquirer to ensure proper transaction coding and reporting. You'll need accurate geo-detection and clear separation in your processing reports.
When will local programs be announced?
Visa hasn't specified dates. Industry speculation: Brazil Q1 2026, India aligned with RBI fiscal year, Chile with broader LAC updates.
Check Your VAMP Status
Disclaimer: Information based on publicly available Visa documentation. Consult with your acquirer and legal counsel for specific guidance on your processing structure.