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Chargeback Metrics

Prerequisites

Before tracking chargeback metrics, understand:

TL;DR
  • Ratio targets: Chargeback ratio under 0.9% (Visa), under 1.5% (Mastercard ECM)
  • Operational targets: Win rate over 40%, response rate 100%, response time under 7 days
  • Financial tracking: Net CB loss = Gross - Recovered; CB fees $15-100 each
  • Segment by: reason code, channel (CNP vs. CP), product type, customer segment, BIN/issuer
  • See Network Programs for threshold details

Critical KPIs for monitoring dispute health and network compliance.

Ratio Metrics​

MetricCalculationNetwork Threshold
Chargeback RatioChargebacks / TransactionsUnder 0.9% (Visa)
Dispute RatioDisputes / TransactionsUnder 1.5% (MC ECM)
Fraud RatioFraud chargebacks / VolumeUnder 0.9% (Visa)

Operational Metrics​

MetricDefinitionTarget
Win RateWon representments / Total represented>40%
Response RateResponded / Total received100%
Response TimeDays to respondUnder 7 days
Recovery RateRecovered $ / Total CB $>30%

Financial Impact​

MetricDefinitionNotes
Gross CB LossTotal chargeback volumeBefore recoveries
Net CB LossGross - RecoveredTrue P&L impact
CB Fee CostFees per chargeback$15-100 each
Program Fee RiskMonthly monitoring fees$10K-25K/month if in program

Segmentation​

Track metrics by:

  • Reason code category (fraud vs. non-fraud)
  • Transaction channel (CNP vs. CP)
  • Product type
  • Customer segment (new vs. returning)
  • BIN/Issuer

Next Steps​

Setting up tracking?

  1. Understand the lifecycle - Know what you're measuring
  2. Review network thresholds - Set internal targets below limits
  3. Build your dashboard - Combine with compliance metrics

Ratio too high?

  1. Check Zero Point Nine Panic - Emergency response
  2. Set up alerts - Deflect before they hit
  3. Follow the playbook - Step-by-step guide

Optimizing win rate?

  1. Study compelling evidence - Know what wins
  2. Improve representment process - Systematic approach
  3. Segment by reason code - Focus on winnable disputes