Merchant account charge back ratios


Anone familiar with the charge back ratios for merchant accounts?

I am starting a monthly re-occurring billing service that will no doubt have lots of charge backs from customers. I'm trying to figure out whether or not I need to go with a high risk merchant that takes a higher percentage, or to go with a "normal" domestic based merchant.

Any feedback would be appreciated. Thanks!

Payments Credit Cards Business Process

asked Mar 8 '11 at 08:37
Kerx Philo
118 points
  • I'd need to know your specific product before I could take a guess. – Michael Pryor 7 years ago
  • Consider making your title a question... – Nikolay Piryankov 7 years ago
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1 Answer


  • If you are a B2B merchant, your chargeback ratios will (should) be near zero.
  • If you are selling directly to consumers, your chargeback ratios will go up.
  • If you are selling luxury items that people would like to buy with stolen credit cards (electronics, equipment, jewelry), your chargeback rates will be very high.
answered Mar 8 '11 at 09:45
Michael Pryor
2,250 points
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Payments Credit Cards Business Process