How the ratio is calculated
The dispute ratio is disputes divided by transactions. A store with 4,000 transactions and 40 disputes is at 1.0%.
Card networks monitor a version of this number, and the exact definition, such as which month’s disputes count against which month’s transactions, varies by network and program. Use this as an early-warning figure and confirm the current rules with your processor.
What the bands mean
Comfortable is under two thirds of the threshold, our own rule of thumb. Watch it is between that and the threshold. At or over the threshold means you’re in the range where processors can add fees, ask for remediation or limit the account.
The fastest ways down are refunding quickly before a dispute is filed, a recognizable statement descriptor, renewal reminders and pre-dispute alerts. See how to reduce chargebacks.
Questions
What is a good chargeback ratio?
Lower is better and the threshold is a ceiling, not a target. Many brands aim to stay well under it. This tool calls anything under two thirds of 1.5% comfortable.
Does winning a dispute lower my ratio?
Not always. A dispute counts when it’s filed, so prevention, such as quick refunds and alerts, matters more than recovery. See your chargeback ratio.
Is the 1.5% figure current?
It’s the Visa threshold our guides quote. Programs and thresholds change, so confirm the current terms with your processor.