1. Work it out
Count the disputes opened in a period. Divide by the transactions in the same period.
Worked example: 14 disputes on 2,000 orders is 14 ÷ 2,000 = 0.7%.
Each network refines the formula:
- Visa (VAMP): (fraud reports + disputes) ÷ settled card-not-present transactions, in the same calendar month. Try the VAMP ratio calculator.
- Mastercard: chargebacks this month ÷ Mastercard transactions last month.
2. Why roughly 1%?
Processors and card networks start flagging stores at roughly 1% of orders disputed. There is no single number: the published lines sit around it.
- 0.5%: Visa's acquirer portfolio "Above Standard" level, measured across an acquirer's whole portfolio.
- 0.7%: Visa's acquirer portfolio "Excessive" level.
- 0.75%: Stripe describes dispute activity above 0.75% as the industry's "excessive" marker.
- 1%: Mastercard's MATCH list "excessive chargebacks" reason: over 1% of sales and $5,000 or more in a month, if an acquirer ends the account.
- 1.5%: Visa VAMP and Mastercard ECM "Excessive" levels, with minimum monthly counts.
- 3%: Mastercard HECM, "High Excessive".
Acquirers can act well below the network lines.
3. The published lines
| Program | Ratio | And each month |
|---|---|---|
| Visa VAMP, Excessive merchant (US, Canada, EU and Asia Pacific from 1 April 2026; Latin America and Caribbean) | 1.5% | 1,500 or more fraud reports and disputes |
| Visa VAMP, Excessive merchant (Central Europe, Middle East and Africa) | 2.2% | 150 or more, and USD 75,000 or more |
| Mastercard ECM (Excessive Chargeback Merchant) | 1.5% to 2.99% | 100 to 299 chargebacks |
| Mastercard HECM (High Excessive Chargeback Merchant) | 3% or more | 300 or more chargebacks |
| Mastercard MATCH list ("excessive chargebacks" reason, if an acquirer ends the account) | Over 1% of sales | and $5,000 or more |
Both the ratio and the count must be met. Programs change, and acquirers can set stricter limits: check with yours. The full table by region, with how each network counts, is on chargeback ratio monitoring.
4. What counts, and what doesn't
Counts:
- Disputes you win. Networks count the disputes you receive, not their outcomes.
- Early fraud warnings, in Visa's VAMP, even if you refund the order (Stripe).
- The same order twice, if it is both a fraud report and a dispute (Stripe).
Doesn't count:
- Refunds you issue.
- Inquiries that never move funds.
Refunding before a dispute avoids the dispute and its fee, so a fraud-reported order counts once instead of twice.
5. What happens over the line
Mastercard ECM fines, per Stripe and Shopify: no fine in month 1, $1,000 in months 2 and 3, $5,000 plus an issuer recovery assessment in months 4 to 6, and rising after that.
- Visa requires risk-mitigation measures above its line. Stripe says Visa charges fees there; Visa doesn't publish the amounts.
- Mastercard removes a merchant after 3 months in a row below the line.
- Persistent problems can end in termination and a MATCH or VMSS listing, which stays for 5 years.
How to bring it down
- Fix the top reason codes first. Find the codes behind most of your disputes and fix those causes. The evidence checklist covers each one.
- Screen orders before fulfillment. Hold the risky ones before they ship.
- Make the charge recognizable. A clear store name on card statements, easy refunds, renewal reminders.
- Use Compelling Evidence 3.0 for Visa fraud claims from returning customers.
- Track it weekly, per processor, not just at month end.
Verdikx checks it every day
Verdikx works out your 30-day dispute-to-order ratio every day, store-wide and per processor, and alerts you as it reaches 0.65%, 1% and 1.5% (every plan). It is an early warning, not the network's official figure.
Verdikx is AI chargeback protection for ecom. Its AI drafts each dispute response from your store's records, following the reason-code playbook. You review it before it's sent, or Autopilot (Growth and up) submits it inside limits you set, where the processor allows it.
Banks decide disputes, and Verdikx never invents evidence. Every plan has a 7-day free trial; see pricing.
Frequently asked questions
How do I calculate my chargeback ratio?
Divide the disputes opened in a period by the transactions in the same period: 14 disputes on 2,000 orders is 0.7%. The networks refine it: Visa's VAMP adds fraud reports to disputes over settled card-not-present transactions in the same month, and Mastercard divides this month's chargebacks by last month's transactions.
What chargeback ratio is too high?
There is no single number. Processors and card networks start flagging stores at around 1% of orders disputed: Stripe calls dispute activity above 0.75% excessive, Mastercard's MATCH list uses over 1% of sales, and Visa VAMP and Mastercard ECM start at 1.5% with minimum monthly counts. Your acquirer can set stricter limits.
Do refunds lower my chargeback ratio?
A refund is not a dispute and is not counted, so refunding before a dispute is filed avoids the dispute and its fee. A Visa fraud report still counts toward VAMP even if you refund, according to Stripe, so a fraud-reported order then counts once instead of twice.
Is the ratio Verdikx shows my official VAMP or ECM figure?
No. Verdikx works out your 30-day dispute-to-order ratio every day, store-wide and per processor, as an early warning. It does not see every Visa fraud report, so the official VAMP or ECM figure your acquirer or processor reports can differ.
See it on your own orders.
Install on Shopify, or create a workspace for WooCommerce, another platform or your processors, and get your first verdicts in minutes. 7-day free trial, no percentage of what you win.
Sources
- Visa: Visa Acquirer Monitoring Program fact sheet (2025) (checked October 5, 2026)
- Visa: Evolving the Visa Acquirer Monitoring Program (checked October 5, 2026)
- Stripe Docs: Dispute and fraud card monitoring programs (checked October 5, 2026)
- Shopify Help Center: Card network monitoring programs (checked October 5, 2026)
- Stripe Docs: Terminated merchant files (MATCH and VMSS) (checked October 5, 2026)
- Stripe Docs: Measuring disputes (checked October 5, 2026)
Last reviewed by Verdikx Research.