2% chargeback US, 3% Chargeback UK Requirement

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  • bean-aid
    So Fucking Banned
    • Jun 2011
    • 16493
    #1

    2% chargeback US, 3% Chargeback UK Requirement

    Just trying to find where Visa and Mastercard implements these requirements as stand alone.

    Only thing I can find is what appears to be real requirements... and they are not in sync with a simple percentage. It also quantifies a number of chargebacks and some stipulations as well. And it is not any/or of the stipulations... it is a "and"... "and"... "and" requirement.

    Here is the type of requirements from Visa Mastercard I have found...

    http://www.moneris.com/en/Merchant-S...hresholds.ashx

    Thanks gfy'ers!
    Tags: None
    • NETbilling
      Confirmed User
      • Jan 2002
      • 8598
      #2
      Where do you see 3%?


      Mitch Farber
      CEO - NETbilling, Inc.
      Email / Phone: 888-357-8166 / 661-252-2456
      Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!

        Comment

        • bean-aid
          So Fucking Banned
          • Jun 2011
          • 16493
          #3
          Originally posted by NETbilling
          Where do you see 3%?
          UK... that's what I've been told anyways

            Comment

            • Konda
              ...
              • Apr 2003
              • 2280
              #4
              Never heard about a 3% CB allowance.
              UK would fall under Visa EU.

              MasterCard and Visa have different ways to calculate Chargeback ratio and Thresholds.

              Calculation
              MASTERCARD: Dividing current month chargebacks by past month sales
              VISA: Dividing current month chargebacks by current month sales

              Threshold
              MASTERCARD: 100 chargebacks and 1.5% cb ratio
              VISA: 200 chargebacks and 2% cb ratio

                Comment

                • NETbilling
                  Confirmed User
                  • Jan 2002
                  • 8598
                  #5
                  Correct and keep in mind the key word there "and".

                  Mitch


                  Mitch Farber
                  CEO - NETbilling, Inc.
                  Email / Phone: 888-357-8166 / 661-252-2456
                  Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!

                    Comment

                    • bean-aid
                      So Fucking Banned
                      • Jun 2011
                      • 16493
                      #6
                      Originally posted by NETbilling
                      Correct and keep in mind the key word there "and".

                      Mitch
                      I think the *and* is a biggie...

                        Comment

                        • bean-aid
                          So Fucking Banned
                          • Jun 2011
                          • 16493
                          #7
                          I'm just going to put it out like it is...

                          If you are processing less then 20K per mid... you will not ever go under Visa or Mastercard radar. What this means... is all that bullshit about 2% and (yes, I was told 3%) is rubbish. It does not exist in most cases.

                          You have to qualify for both number of transactions chargebacked... as well as you percent.

                          Any biller tries to scare you with *JUST* percent... is lying to you.

                            Comment

                            • NETbilling
                              Confirmed User
                              • Jan 2002
                              • 8598
                              #8
                              Banks and processors who are taking the risk on your 3rd party accounts or mids have the right to have their own internal thresholds where they feel a merchant is in danger of exceeding the allowable thresholds put forth by the card associations.

                              Mitch


                              Mitch Farber
                              CEO - NETbilling, Inc.
                              Email / Phone: 888-357-8166 / 661-252-2456
                              Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!

                                Comment

                                • bean-aid
                                  So Fucking Banned
                                  • Jun 2011
                                  • 16493
                                  #9
                                  Originally posted by NETbilling
                                  Banks and processors who are taking the risk on your 3rd party accounts or mids have the right to have their own internal thresholds where they feel a merchant is in danger of exceeding the allowable thresholds put forth by the card associations.

                                  Mitch
                                  But they are not regulated by a 2% chargeback. They are regulated by a 2% (or whatever) chargeback *AND* 100 chargebacks (or something similar).

                                  So if you process under third party... you have 2% (or whatever) restriction. If you have your own mid (which puts you into your own merchant account standing by definition)... you have the luxury of the 2% *AND* the 100 chargeback threshold.

                                  That makes a HUGE difference in what you can do.
                                  Last edited by bean-aid; 03-02-2014, 08:37 PM.

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