How to Keep Your ChargeBack Rates Low

Crossing a limit can place you in a monitoring program, add monthly assessments, and trigger remediation plans. If results do not improve, you can face processing caps or account closure. Limits protect the network and issuers from high risk traffic and help drive dispute reduction.

How to Keep Your Chargeback Rates Low

The fastest way to keep your rate low is to stop disputes before they become network chargebacks. Chargeback alerts are the key tool for this. They give you an early warning from the issuer or network so you can act quickly, usually by refunding, and avoid a chargeback that would count against your ratio.

What chargeback alerts are

Alerts are notices sent before a formal chargeback is created. Common sources are Verifi RDR and CDRN and Ethoca Alerts. When you accept and resolve an alert within its window, the case is closed at the alert stage. In most setups, resolved alerts do not count toward network chargeback ratios.

Measure results and tune rules

Track alert acceptance rate, time to first action, and how many alerts still become chargebacks. Review by reason, product, and channel to find issues you can fix upstream. Keep an eye on double refunds and add checks that block a second refund on the same case.

Round out the program with simple prevention steps. Use a clear billing descriptor and send order and delivery confirmations. Use AVS and CVV checks and 3DS where it fits. When you do contest a chargeback, submit complete evidence on time.