Visa and Mastercard Chargebacks

See the last 12 months of chargebacks by ratio and count. Easily select and compare in the filters.
By default, the ratio and count are the same.

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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. The card networks (Visa and Mastercard) place a limit on the acceptable ratio of chargebacks per merchant.

Visa Chargeback Limits

For Visa as of May 2020, the limit is 0.9% of chargebacks as a ratio of sales in the current month after a threshold of 100 chargebacks have been reached.

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 the period, typically a month.

Ratio

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

The Math


Count (this refers to a chart or the numbers)

The sum of all individual chargebacks during the period.

Ratio (this refers to a chart or the numbers)

The count of chargebacks divided by the count of transactions.

Forecasts (should we add count forecast & ratio forecast as well)

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 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).

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.


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