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Chargeback Risk Scorecard: Check Your Ratio Against Card Brand Thresholds

Enter a few numbers from your processor dashboard to see your chargeback ratio, how close you are to Visa and Mastercard monitoring lines, and a 0-100 risk score. No signup needed for your score.

Your disputes and controls

Pick the closest match. This adjusts a small baseline risk factor in the score.
Total card sales in a typical month. Used to estimate your average ticket and the dollar cost of chargebacks.
Number of card sales in a typical month (not including refunds). This is the denominator of your chargeback ratio.
Total disputes received over the last three months, won or lost. Check your processor's dispute report.
Customers who can find your policy are more likely to ask you for a refund than to ask their bank.
3-D Secure (Visa Secure, Mastercard Identity Check) and address/CVV verification help block stolen-card orders.
Unrecognized charges are a common source of "I don't know this purchase" disputes.
Recurring billing and free trials create more "I forgot I signed up" disputes when reminders are missing.
Helps a specialist review your dispute tools if you ask for a follow-up.

Your scorecard

Fill in the form to see your chargeback ratio, threshold status, and 0-100 risk score.

How this scorecard works

Your chargeback ratio is the number of disputes you receive in a month divided by the number of card transactions you process. Card brands watch this number closely. Mastercard runs an Excessive Chargeback Program, and Visa moved to its Visa Acquirer Monitoring Program (VAMP), which counts fraud reports and disputes together. Merchants who cross these lines can face monitoring, fees, required remediation plans, and in serious cases account closure. Processors often step in earlier than the card brands do, which is why many online and subscription merchants treat 1% as a line to stay well below. This scorecard uses threshold values labeled as assumptions; card brand rules change, so confirm the current figures with your processor.

The score combines your measured ratio (up to 50 points) with the habits that tend to drive disputes: whether customers can find your refund policy, whether you use 3-D Secure and AVS/CVV to block stolen-card orders, whether your statement descriptor is recognizable, how you handle subscription renewals and trials, and a small baseline for your business type. A low ratio with weak controls still scores in the moderate range because a single bad month, a fraud attack, or a confusing renewal can push you over quickly.

The full report turns the score into a to-do list. Each fix is ranked by its assumed effect on your chargeback count and by effort, with an estimate of how much it could lower your ratio and what your current chargebacks cost per year in lost sales, fees, and staff time. Estimates are based on published industry averages and are not a quote. Actual rates depend on card mix, ticket size, industry, and underwriting.

How the 0-100 score and risk bands are set

We take your 90-day dispute count, divide by three for a monthly figure, and divide that by your monthly transactions. A ratio of 1.50% or higher earns the full 50 ratio points; 0.75% earns 25. Your answers about refund policy, fraud tools, and descriptor are worth up to 12 points each, billing model up to 10, and business type up to 4. Scores of 0-24 are Low, 25-49 Moderate, 50-74 Elevated, and 75-100 High. Your ratio can override the score: at 1.00% or above the band is at least Elevated, and at 1.50% or above it is High no matter how strong your controls are.

How do I calculate my chargeback ratio?

Divide the chargebacks you received in a month by the card transactions you processed. For example, 12 chargebacks on 1,500 transactions is 0.80%. Card brands calculate it slightly differently (for instance, which month's transactions go in the denominator, and Visa also counts fraud reports), so your processor's number may not match exactly.

What are the Visa and Mastercard chargeback thresholds in 2026?

Mastercard's program flags merchants at a 1.0% ratio with at least 100 chargebacks a month and treats 1.5% as excessive. Visa replaced its older dispute and fraud programs with VAMP in 2025, which combines fraud reports and disputes; its merchant thresholds have been phased in and vary by region. This tool uses 1.5% for Visa as a labeled assumption. Ask your processor for the current figures that apply to your account.

What happens if my ratio goes over the threshold?

Typically your processor notifies you, you may be placed in a card brand monitoring program with monthly fees and a remediation plan, and your processor may add a reserve or review your account. Sustained high ratios can lead to account termination. Exact consequences depend on the card brand rules and your processor agreement.

Should I refund a customer who already filed a chargeback?

Generally no. Once a dispute is filed, a separate refund doesn't cancel it, so you can end up paying twice. Respond through your processor's dispute process instead. Refunding quickly before a dispute is filed, or through a pre-dispute alert, is what prevents the chargeback.

What is the fastest way to reduce chargebacks?

The quickest low-effort wins are usually a recognizable billing descriptor with a phone number or URL, a refund policy shown at checkout, and renewal reminders for subscriptions. Turning on 3-D Secure and AVS/CVV targets fraud disputes. Your gated report ranks these based on your answers.

Does using this scorecard affect my merchant account?

No. Nothing is sent to your processor or the card brands. Your score is calculated in your browser, and your inputs are only saved if you choose to unlock the full report.

How this works: every assumption behind your score

These are the exact values the scorecard uses. Threshold values, cost figures, and fix reduction rates are assumptions, not card brand guarantees or measured statistics. Confirm current card brand rules and your actual fees with your processor.

AssumptionValue usedSource / basis

Put this calculator on your website

eCommerce agencies, Shopify and WooCommerce developers, bookkeepers, and merchant associations can embed this free chargeback risk scorecard with one line of code. Your visitors get their ratio and score instantly, and the threshold assumptions stay up to date automatically.