Chargeback ratio thresholds at a glance
| Measure | How it's counted | Line | Monthly minimum |
|---|---|---|---|
| Overall dispute ratio | Disputes received ÷ orders, same month, all cards | Worth watching from 0.65%; processors and card networks start flagging stores at around 1% | None |
| Visa VAMP, Excessive merchant | (Fraud reports, TC40 + disputes, TC15) ÷ settled card-not-present transactions, same month | 1.5% in the US, Canada, Europe and Asia Pacific from 1 April 2026 (other regions: VAMP calculator) | 1,500 fraud reports and disputes |
| Mastercard ECM (Excessive Chargeback Merchant) | Chargebacks this month ÷ Mastercard transactions last month | 1.5% to 2.99% | 100 chargebacks |
| Mastercard HECM (High Excessive Chargeback Merchant) | Same as ECM | 3% or more | 300 chargebacks |
A network identifies a merchant only when both the ratio and the minimum are met. Acquirers can apply stricter limits, so check with yours.
How the calculator works
- Overall ratio. Disputes received this month divided by orders this month, across every card. It is close to the 30-day dispute-to-order ratio Verdikx checks every day, store-wide and per processor, and the one to watch before a network does: processors and card networks start flagging stores at around 1% of orders disputed.
- Visa VAMP ratio. Fraud reports (TC40) plus disputes (TC15) divided by settled card-not-present transactions in the same calendar month. A transaction with both a fraud report and a dispute counts twice. The merchant Excessive level is 1.5% with at least 1,500 counts in most regions.
- Mastercard ratio. Chargebacks received this month divided by Mastercard transactions from the previous month. Mastercard counts a chargeback whatever the outcome, refund or liability shift.
What counts
- Won disputes still count. Programs count disputes when they arrive, not when they are decided.
- Refunds are not disputes. Refunding before the customer disputes keeps that order out of the dispute count. A Visa fraud report still counts toward VAMP even if you refund.
- Inquiries that never move money are not counted as disputes.
- Descriptors and acquirers. Visa identifies an account by the static part of its statement descriptor and its acquiring bank, so your numbers can be split or combined differently from this calculator.
How to bring it down
- Find the reason codes behind most of your disputes and fix those causes first.
- Screen orders and hold the risky ones before they ship (order screening).
- Refund early when an early fraud warning arrives on an order you haven't shipped.
- Make your billing descriptor recognisable and refunds easy to ask for.
- Track the ratio weekly, per processor, not just at month end. Thresholds by region and the fines are on chargeback ratio monitoring.
Frequently asked questions
What numbers do I need for the chargeback ratio calculator?
Your orders and disputes for the month give the overall ratio. For Visa, use settled card-not-present transactions, disputes (TC15) and fraud reports (TC40) from your processor's reports; Stripe shows fraud reports as early fraud warnings. For Mastercard, use this month's chargebacks and last month's Mastercard transactions.
Why does the calculator show three different ratios?
Because each is counted differently. The overall ratio divides all disputes by all orders. Visa's VAMP ratio 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, so a store can be under one line and over another.
Which chargeback ratio line matters first?
Processors and card networks start flagging stores at around 1% of orders disputed, so act before your overall ratio gets there. Visa's merchant Excessive level is 1.5% with at least 1,500 fraud reports plus disputes a month in most regions, Mastercard's ECM level is 1.5% with at least 100 chargebacks, and acquirers can act earlier.
Will my processor see the same ratio?
Not necessarily. Each network and processor counts its own way: per card network, per statement descriptor and acquirer, and over its own period, and Mastercard counts a chargeback whatever the outcome. Use this as an early warning and confirm the official figure with your processor or acquirer.
A daily chargeback-ratio check, store-wide and per processor (every plan).
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Sources
- Visa: Visa Acquirer Monitoring Program fact sheet (2025) (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)
- Visa: Evolving the Visa Acquirer Monitoring Program (checked October 5, 2026)
Last reviewed by Verdikx Research.