Commerce Glossary

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What is Chargeback Threshold?

charge - back thresh - old
noun
Is also known as “chargeback ratio” and represents the maximum percentage of chargebacks a merchant is allowed relative to their total number of orders. The standard chargeback threshold for both Visa and Mastercard has traditionally been 1% of the total transaction volume, but was further reduced to 0.9% in October, 2019.

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