What is a Refund Ratio?

Modified on Tue, 3 Sep at 9:45 PM

As defined by Visa and Mastercard, your refund ratio is the number of refunds divided by the total number of sales within a specific period. For example, if you processed 500 sales in December with 10 refunds, your refund ratio would be 10/500, or 2%. This percentage aligns with the acceptable standards set by Visa and Mastercard.


Merchants should strive to maintain a refund ratio under 10%, but Allied Payments can onboard high-risk merchants with refund ratios over 10%.

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