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Operations · Glossary

Chargeback ratio

Also called: dispute ratio

Chargeback ratio is the percentage of a merchant's transactions that result in chargebacks within a given period. Visa and Mastercard place merchants exceeding 0.9% or 1.0% (network-dependent) into monitoring programs that can lead to reserve requirements or account termination.

Why this matters to merchants

Chargeback ratiosits inside the broader system of U.S. payment processing economics that determine a merchant’s effective rate. Most operators encounter this term on their merchant statement without understanding what it controls, which is how the four hidden fees covered by our methodology slip past unnoticed.

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