Chargebacks come from unresolved disputes and claims. They require card providers to return funds to a customer, which leaves businesses with a chargeback fee and a hit on their record.
A high or increasing chargeback rate increases the risk level of a business, regardless of their industry. It becomes difficult to find a payment processor or bank that will provide services. It can also put companies out of business.
Revenue, sales amounts, and industries are just a few factors that affect a business’s chargeback rates. If you are a low risk merchant, your chargeback ratio is most likely low to zero.
Even so, all merchants should keep an eye on their chargeback ratio to prevent their risk level from increasing. Revitpay offers support such as chargeback alerts and fraud protection to keep rates low.