Chargeback Rate Calculator
The threshold matters more than the count.
Chargeback rate
0.5%
within the threshold
Within the threshold with 16 chargebacks of headroom. A recognisable billing descriptor and responsive support are the cheapest ways to keep it there.
How the Chargeback Rate Calculator works
Above the card scheme threshold you enter a monitoring programme with monthly fines, mandatory remediation and eventual termination. The fines dwarf the chargebacks, which is why the rate matters far more than the amount.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What chargeback rate is acceptable?
Card schemes generally begin monitoring around 0.9% of transactions, with escalating programmes above that. Staying well below it is the only comfortable position.
What happens in a monitoring programme?
Monthly fines, a remediation plan, and increased scrutiny from your acquirer. Prolonged failure to exit ends in losing card acceptance altogether.
How do I reduce chargebacks?
A recognisable billing descriptor is the single biggest lever — most 'fraud' chargebacks are customers not recognising the name. Then responsive support, delivery tracking and address verification.
Do refunds prevent chargebacks?
Yes, and a refund is always cheaper than a chargeback. Refunding a disputed order quickly costs the sale; letting it become a chargeback costs the sale, a fee and your ratio.