Check your chargeback ratio, see it per 1,000 sales, and find out how many disputes you can have and still hit your target.
Your chargeback ratio is one of the first numbers underwriters look at. Most disputes come from confusion or frustration, not fraud, so small changes can make a big difference.
Make sure the name on your customers' statements is one they'll recognize.
Billing descriptors →A quick refund costs less than a chargeback and doesn't count against your ratio.
How chargebacks work →Send order confirmations and renewal reminders, and keep proof of delivery.
Friendly fraud →Use address and security code checks at checkout to stop stolen-card orders.
Payment gateways →The basic formula is chargebacks in a month divided by transactions in the same month. Some card networks and processors divide this month's chargebacks by the previous month's transactions instead, so ask your processor which method applies.
Lower is always better. Card networks run monitoring programs for merchants with high dispute rates, and the thresholds change over time, so check with your processor for the current limits that apply to your account.
No. A refund is money you return directly to the customer. A chargeback is a dispute the customer files with their bank. Refunding quickly when a customer asks is one of the best ways to prevent chargebacks.
It's harder, but possible, especially if you can show what you've changed. See the approval checklist, or apply in about 3 minutes and a payments specialist will review your application.
.avif)