What is a chargeback threshold?

In short

A chargeback threshold is the level of chargebacks, set by a card scheme as a monthly ratio together with a minimum count, above which a merchant or its acquirer enters a monitoring programme. A chargeback threshold is a tripwire, not a target: acquirers set stricter limits of their own and act on a merchant before the scheme's level is reached.

Also called
Chargeback limit, Chargeback ratio threshold, Excessive chargeback threshold
Family
Fraud and disputes
Facts checked

How a chargeback threshold works

A threshold has two parts, and both have to be met: a ratio of disputes to transactions, and a minimum number of disputes in the month. The minimum keeps a small merchant with three chargebacks on a hundred sales out of a programme meant for large problems.

The schemes revise the figures from time to time, so a number is only as good as its date.

Visa's chargeback thresholds

Visa's 2025 fact sheet on its acquirer monitoring programme (VAMP) counts fraud reports plus disputes on card-not-present transactions. An acquirer's portfolio is above standard at 50 basis points (0.5%) and excessive at 70 basis points (0.7%).

A single merchant is excessive at 220 basis points (2.2%) in Europe, the US, Canada and Asia-Pacific, with at least 1,500 fraud reports and disputes in the month. The fact sheet lowers that level to 150 basis points (1.5%) on 1 April 2026.

Mastercard's thresholds, and the acquirer's own

Mastercard measures chargebacks in a month against transactions in the month before, and names two levels: Excessive Chargeback Merchant and High Excessive Chargeback Merchant. Its public Security Rules and Procedures of 4 August 2026 refer to a separate manual for the figures.

An acquirer or PSP normally warns a merchant at a fraction of the scheme's level, since its own portfolio is measured too.

Where a chargeback threshold shows up in a platform

Modules that do the work

Platforms that need it

Where it is written

The laws and standards this page's facts come from.

General information, not legal advice: what applies to you depends on your services and your market.

Every term

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