What is Chargeback Threshold | chargebackhit.com

Chargeback Threshold

chargeback threshold is the upper limit of the merchant’s chargeback rate, which, if exceeded, will result in consequences for the card network, processor, or acquirer. Chargeback thresholds typically include a chargeback ratio and a total number of chargebacks to account for situations where a small merchant may exceed the ratio due to only one or two chargebacks.