In dynamic-compression experiments, the line-imaging Velocity Interferometer System for Any Reflector (VISAR) is a well-established diagnostic used to probe the velocity history, including wave profiles derived from dynamically compressed interfaces and wavefronts, depending on material optical properties. Knowledge of the velocity history allows for the determination of the pressure achieved during compression. Such a VISAR analysis is often based on Fourier transform techniques and assumes that the recorded interferograms are free from image distortions. In this paper, we describe the VISAR diagnostic installed at the HED-HIBEF instrument located at the European XFEL along with its calibration and characterization. It comprises a two-color (532, 1064 nm), three-arm (with three velocity sensitivities) line imaging system. We provide a procedure to correct VISAR images for geometric distortions and evaluate the performance of the system using Fourier analysis. We finally discuss the spatial and temporal calibrations of the diagnostic. As an example, we compare the pressure extracted from the VISAR analysis of shock-compressed polyimide and silicon.