The Terms

Chargeback

A chargeback is a forced refund of purchase. Typically, a dissatisfied consumer tells their bank to reverse the charge. The bank does this automatically or after an investigation of potential fraud. Mastercard places a limit on the acceptable ratio of chargebacks per merchant.

Mastercard Chargeback Limits

For Mastercard as of May 2020, the limit is 1.5% of chargebacks as a ratio of sales in the previous month after a threshold of 100 chargebacks has been reached.

Count

The number of chargebacks during a period.

Ratio

The number of chargebacks in the month of interest divided by the number of transactions during the previous month. For example, 10 chargebacks divided by 1,000 transactions equals a 1% chargeback ratio.

The Math

Count

The sum of all individual chargebacks during the current month.

Ratio

The count of chargebacks in the month of interest divided by the count of transactions of the previous month.

Forecasts

Forecasts use artificial intelligence to predict your future performance. It analyzes patterns from historical data and updates the forecast to take into account any changes in your business. We have developed a time series forecast model.

The Visuals

The X axis (or horizontal axis)

Month of year

The Left Y axis (or vertical axis)

Chargeback ratio

The Right Y axis (or vertical axis)

Count of chargebacks

Blue Bar

The 'selection' count of chargebacks in the preceding months. The count is measured on the right Y-axis (or secondary vertical axis to the right).

Grey Bar

The 'selection' count of chargebacks forecast in the upcoming months. The count is measured on the right Y-axis (or secondary vertical axis to the right).

Blue Line

The 'selection' historic ratio of chargebacks compared to transactions. It is measured on the Y-axis (vertical axis to the left).

Grey Line

The 'selection' ratio of chargebacks forecast compared to transactions for upcoming months. It is measured on the Y-axis (vertical axis to the left).

Red Line

The chargeback ratio limit. It is set at 1.5% as of May 2020.

The Updates

This report updates once per day at 8 a.m. Central European Time GMT+2.

The Filters

Default is 30 days like almost all reports

When comparing data ranges it is good to use the same amount of days in the selection and comparison. Comparing date ranges requires both time frames to have the same amount of days.