Online Payments: What is the typical chargeback rate for U.S. merchants?

Asked May 7, 2013· 1 answer ·Americas, Developed Markets, North America, United States
Faisal KhanAnswered May 7, 2013
I'm not sure if card associations publish the kind of statistics you are seeking. Brian Roemmele would be a good bet to tap into, to find out if they do.

Since I was A2A, I can cite figures for Remittance industry only.

For Card Present Transactions: The chargeback rate is less than 0.1%

For Card Not Present Transactions: The chargeback rate is very interesting:

  • Amount being remitted is between $0 - $1500: Chargeback Rate: 0.3%
  • Amount being remitted is between $1501 - $2000: Chargeback Rate: 0.5%
  • Amount over $2400-$2500 mark suddenly experiences a surge and it is almost 3.0% to 3.5%

There are roughly about 100,000 to 180,000 across the board transactions from the US everyday for remittances where a credit/debit card is used, so you can deduce the number of transactions that are charged back.
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