Your chargeback ratio determines your merchant account health. Learn what ratios are acceptable, how to calculate yours, and strategies for keeping chargebacks under control.
Your chargeback ratio is the single most important metric for merchant account health. Exceeding card network thresholds can trigger fines, increased reserves, or account termination.
Chargeback ratio = (Number of chargebacks in a month) ÷ (Number of transactions in that month) × 100
"Visa and Mastercard consider 1% chargeback ratio the threshold for excessive chargebacks."
Consequences escalate: warning letter → increased reserves → higher fees → placement in monitoring program → account termination.
Chargebacks affect your ratio for 12 months. However, individual chargeback incidents may be visible to processors for longer.
Yes, through the representment process. Success rates vary by reason code. Fraud-related chargebacks have ~40% win rates; friendly fraud has ~20% win rates.
Cybin Enterprises is a payment services intermediary specializing in high-risk merchant accounts. Our team brings decades of experience in payment processing, compliance, and risk management.
Expertise: High-risk underwriting, payment compliance, chargeback management, multi-processor routing
Understanding the factors that classify a business as high-risk is the first step to securing stable payment processing.
Chargeback disputes can threaten your merchant account. Discover how early dispute alert systems help merchants resolve issues before they escalate.
Whether you're dealing with account termination or launching a new high-risk business, we can help you secure stable payment processing.
