How to lower your chargeback ratio

Chargebacks are the fastest way to lose a merchant account. Card networks start monitoring once your ratio nears 1%, and processors drop merchants who cross it. Here’s how to keep yours low.

Use a clear billing descriptor

A huge share of disputes are “I don’t recognize this charge.” Make sure the name on the customer’s statement matches your brand and includes a contact number.

Make refunds easier than disputes

If getting a refund from you is harder than calling the bank, customers will call the bank. A visible, fast refund policy prevents chargebacks before they happen.

Turn on chargeback alerts

Visa (Verifi) and Mastercard (Ethoca) alert programs notify you of a dispute before it becomes a chargeback, giving you a window to refund and resolve it so it never counts against your ratio.

Fight the disputes worth fighting

For friendly fraud, submitting compelling evidence — AVS/CVV match, delivery confirmation, and terms accepted — can win the dispute and protect your ratio. Automated tools can assemble this for you.

Greenlit builds these tools into every account, because keeping your ratio low is what keeps your account open.