Chargeback rate

Chargeback rate is the percentage of transactions that result in chargebacks over a specific period, calculated by dividing the number of chargebacks by the total number of transactions. Card networks use this metric to monitor merchant performance and compliance, with rates exceeding the threshold triggering enrollment in chargeback monitoring programs.

A high chargeback rate indicates issues with fraud prevention, product quality, customer service, or billing practices, and can result in increased fees, account reserves, or termination of merchant accounts.