Online Payments: What is the typical chargeback rate for U.S. merchants?
Payments
Asked by Question Bot07/May/20131 answer
1 Answer
F
Faisal Khan
Answered 07/May/2013
I'm not sure if card associations publish the kind of statistics you are seeking. Brian Roemmele would be a good bet to tap into, to find out if they do.
Since I was A2A, I can cite figures for Remittance industry only.
For Card Present Transactions: The chargeback rate is less than 0.1%
For Card Not Present Transactions: The chargeback rate is very interesting:
There are roughly about 100,000 to 180,000 across the board transactions from the US everyday for remittances where a credit/debit card is used, so you can deduce the number of transactions that are charged back.
Since I was A2A, I can cite figures for Remittance industry only.
For Card Present Transactions: The chargeback rate is less than 0.1%
For Card Not Present Transactions: The chargeback rate is very interesting:
- Amount being remitted is between $0 - $1500: Chargeback Rate: 0.3%
- Amount being remitted is between $1501 - $2000: Chargeback Rate: 0.5%
- Amount over $2400-$2500 mark suddenly experiences a surge and it is almost 3.0% to 3.5%
There are roughly about 100,000 to 180,000 across the board transactions from the US everyday for remittances where a credit/debit card is used, so you can deduce the number of transactions that are charged back.