If you are a business owner and want to run a successful business then get yourself educated with the Chargeback. For updates related to Chargeback and Chargeback Representment, we recommend you to follow our blogs. We are here to discuss average Chargeback rate and its effects on the business.
A business with more number of chargebacks leads to greater chargeback rate per month. That later impacts your business negatively by making it a “high-risk business”. The situation can become worse if you do not handle your current business situation very well.
Now, the specialists at the Chargeback Expertz are available 24/7 to provide you all kinds of help you might need with your business. We also guide our users with Chargeback Representment and help them fight against frauds.
What is a Chargeback Rate?
The rate of chargeback of a business in a span of a month is calculated as Chargeback Rate. You simply divide the number of chargebacks in a month to the number of transactions of that month, which will give you chargeback ratio. When you multiply this chargeback ratio with 100 you will get chargeback rate.
Chargeback Rate = (No. of chargeback in 30 days / No. of transaction in 30 days)*100
Using the above formula, you can calculate the chargeback ratio of your business on your own. In order to find the average chargeback rate, you can take the chargeback rates of your previous months and take their mean.
What is the Threshold Chargeback Rate?
The worldwide accepted Threshold Chargeback Rate is 1%. This means if your business exceeds chargeback rate of 1% then you will be subjected to the fine.
But the point to focus is that the 1% criteria are not followed by every company. This means that the different card companies have their own threshold chargeback rate and formula to calculate the average chargeback rate.
If you are unable to understand these criteria and looking for guidance, then contact the Chargeback Expertz at the toll-free number. We will help you understand chargebacks, which will help your business thrive.
How Average Chargeback Rate affects your business?
Before giving you any penalty, your business is monitored very well. In terms of chargeback, the whole graph of your business is considered, before giving you any fine. This makes the entirety of your business more important, which can be calculated with the help of the Average Chargeback Rate.
- Yes, the 1% threshold is important to consider but that does not mean your business is not good.
- Not to forget that the different card companies use different methods to calculate the chargeback rate.
- The category and product that you are selling are also taken into account when evaluating chargeback and dispute.
- Finally, there are many businesses that are considered as high risk but also get high profits.
For more details, get in touch with the Chargeback Expertz team. Furthermore, you will get tips related to chargeback depending on your business type.
Looking for Help to Reduce your Chargebacks?
Here at the Chargeback Expertz, you will get all kind of assistance for your chargeback, dispute, and Chargeback Representment. Furthermore, you can chat with an expert via Skype anytime.
Here are some tips to reduce and avoid a dispute with the customer:
- In order to run a successful business, you need to keep your customer happy. This is the first rule of the business.
- Keeping your product genuine and updated can do so much.
- But you also need other effective methods to make connections with them such as feedbacks.
- You need to take their requests seriously and act on it.
- Provide the complete detail of your product to the customer.
- Also, do not forget to inform them about the term and condition of your business.
- We highly recommend the merchant to keep a record of all their transactions.
- Maintain the average chargeback rate and monitor the disputes.
- Finally, get in touch with an expert to help you reduce your chargeback.
At the Chargeback Expertz, you get pre-chargeback alerts, which further help you reduce and prevent a chargeback. So do not risk your business any further and contact the expertz now.