As defined by Visa and Mastercard, your chargeback ratio is the total number of chargebacks divided by your total number of sales over a specific period. For instance, if you processed 500 sales in December and encountered 4 chargebacks, your chargeback ratio would be 4/500, which equals 0.80%. According to Visa/Mastercard standards, this ratio is deemed acceptable.
Merchants should strive to maintain a chargeback ratio under 1%, but Allied Payments can onboard high-risk merchants with chargeback ratios over 1%.
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