GLOSSARY
What is a chargeback ratio?
A chargeback ratio is the number of chargebacks a merchant receives divided by its number of transactions over a period. Card networks and acquirers monitor it, and a high ratio can lead to fees, reserves or account closure.
How it works
Each card network calculates it slightly differently, and acquirers often apply stricter internal limits than the networks themselves.
Why it matters for high-risk brands
For high-risk brands, the ratio decides whether an account survives, which is why alerts, clear descriptors and fast refunds matter.
FAQ
Chargeback ratio: questions
What is a good chargeback ratio?
As low as possible. Acquirers often act well before card network thresholds, so treat any rise as a warning.
How can I lower my chargeback ratio?
Clear descriptors and subscription terms, fast refunds, pre-dispute alerts and good fraud screening.