2% chargeback US, 3% Chargeback UK Requirement - GoFuckYourself.com

bean-aid · 03-02-2014, 08:53 PM

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!

NETbilling · 03-02-2014, 09:04 PM

Where do you see 3%?

bean-aid · 03-02-2014, 09:10 PM

Quote:

Originally Posted by NETbilling

Where do you see 3%?

UK... that's what I've been told anyways

Konda · 03-02-2014, 09:15 PM

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

NETbilling · 03-02-2014, 09:21 PM

Correct and keep in mind the key word there "and".

Mitch

bean-aid · 03-02-2014, 09:24 PM

Quote:

Originally Posted by NETbilling

Correct and keep in mind the key word there "and".

Mitch

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

bean-aid · 03-02-2014, 09:54 PM

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.

NETbilling · 03-02-2014, 10:23 PM

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

bean-aid · 03-02-2014, 10:35 PM

Quote:

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.

03-02-2014, 08:53 PM	#1
bean-aid So Fucking Banned Industry Role: Join Date: Jun 2011 Location: the land of woke sleuths Posts: 16,493	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!

03-02-2014, 09:04 PM	#2
NETbilling Confirmed User Industry Role: Join Date: Jan 2002 Location: Huntington Beach, CA Posts: 8,584	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!

03-02-2014, 09:21 PM	#5
NETbilling Confirmed User Industry Role: Join Date: Jan 2002 Location: Huntington Beach, CA Posts: 8,584	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!

03-02-2014, 10:23 PM	#8
NETbilling Confirmed User Industry Role: Join Date: Jan 2002 Location: Huntington Beach, CA Posts: 8,584	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!

03-02-2014, 09:15 PM	#4
Konda ... Industry Role: Join Date: Apr 2003 Posts: 2,280	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

03-02-2014, 09:54 PM	#7
bean-aid So Fucking Banned Industry Role: Join Date: Jun 2011 Location: the land of woke sleuths Posts: 16,493	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.