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!

Where do you see 3%?

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

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

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

Mitch

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

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.

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.