Refund Ratio

What’s a refund ratio, and what does it mean?

Your refund ratio is defined by Visa/Mastercard as total count of refunds, divided by your total count of sales, for any given time period. For example – if during the month of January you processed 500 sales, and had 10 refunds, your refund ratio would equal 10/500, or 2.00%. This would be considered an acceptable refund ratio, per Visa/MC standards.

Dharma is able to board high-risk merchants with refund ratios up to 12.00% by count. So, for a merchant processing 500 sales a month, this would be equivalent to no more than 60 refunds for that month, at a maximum.