Chargeback Ratios

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

Your chargeback ratio is defined by Visa/Mastercard as total count of chargebacks, 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 4 chargebacks, your chargeback ratio would equal 4/500, or 0.80%. This would be considered an acceptable chargeback ratio, per Visa/MC standards.

Dharma is able to board high-risk merchants with chargeback ratios up to 1.00% by count. So, for a merchant processing 500 sales a month, this would be equivalent to no more than 5 chargebacks for that month, at a maximum.