Chargeback Ratio

October 1, 2018

October 1, 2018

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46 Seconds to Discover Thousands of Wasted Dollars in your Business.

82% of companies find $12,000 wasted annually. How much are you losing?


Your chargeback ratio is the number of chargebacks divided into the number of total credit card processing transactions.  If your chargeback ratio gets too high your merchant account could get restricted. For example there could be a reserve, or your account could get canceled.

Different underwriters choose to calculate chargeback ratios in different ways. Some will look atHow old an account is, while others will not. We recently had a case where a merchantWho is less than a week oldHad their account closed due to one chargeback.We’ve also seen companiesThat use a launch product type model where there will be months with high volume followed by months with low volume. Because of this lumpiness in charge volume,Some underwriters will see spikes in chargeback ratios and at worst close the account and at best ask questions.FeeFighters is here to help ensure that merchants are placed at the best processors and are allowed to explain their business which has a big impact in how chargeback ratios impact your business. 

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