Chargeback ratio Definition.

The share of a merchant’s transactions that are disputed (the number of disputes divided by the month’s transactions). The card networks run threshold-based monitoring programs, such as Visa’s VAMP (consolidated in April 2025, combining reported fraud and disputes) and Mastercard’s ECP, with merchant thresholds of about 1.5% (2.2% in CEMEA for Visa). A merchant over the threshold faces remediation plans, fines, and ultimately termination of its acquiring agreement and a place on the network’s blacklists.