What is a chargeback ratio? Why card providers watch it
By SendPay Business · · 2 min read
- 1Your card appears in your app
- 2Tap it to pay in a shop
- 3See every payment as it happens
A chargeback ratio is the share of a business's card payments that end up as chargebacks. Payment providers and card schemes watch it closely, because a high ratio suggests fraud or unhappy customers.
How to work it out
Divide the number of chargebacks in a period by the number of card payments in the same period, then multiply by 100. For example, 5 chargebacks from 1,000 payments in a month is a ratio of 0.5%.
Why it matters
Card schemes run monitoring programmes, and payment providers set their own limits, often well below 1%. A business whose ratio stays high can face extra fees, a reserve held back from its payouts, or the loss of card processing.
Try it
Name your platform and watch it come to life
Type a name, tap a colour and pick what it does. The phone changes as you go.
Colour
What it does
Design and preview your whole platform free, then launch when you are ready.
Ways to keep it low
0 of 5 done
Tick each step as you do it, so you can see what is left.
Where SendPay fits
SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners. SendPay tells you in writing which licences apply to your platform before you launch.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
Can I work out my ratio online?
Our free chargeback ratio calculator shows your ratio, how close it is to your provider's limit, and what chargebacks cost you.
Chargeback ratio calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.