Chargeback Reversal Win Ratio: What is Realistic?

There are many reasons why merchants choose to dispute chargebacks. Perhaps they feel they feel the quality of products or services they delivered met the customer’s satisfaction. Or maybe they suspect they are the victims of “friendly fraud” in which an online consumer makes a purchase and then requests a chargeback, even though they have received the goods or services as promised.

Whatever the case may be, merchants should set realistic expectations for the amount of chargebacks they can fight and win. According to, a chargeback management solution provider, a 1 percent chargeback rate is the industry standard maximum. That means if you process 100,000 transactions in a given month, and receive 1,000 chargebacks, you fall within the industry standard.

If you are meeting that 1 percent standard, does it mean you are in the clear? Not necessarily, since it’s highly likely there are still opportunities to prevent fraud, fight unwarranted chargebacks more aggressively, and protect your revenues. And if you’re in the 1 percent standard, that doesn’t mean you have a good chargeback reversal win rate.

So when it comes to the chargebacks you contest, how many cases should you expect to win? While there is no solid answer across all merchants, generally over 50 percent of contested chargebacks should be won. Meeting this goal means you are winning more cases than you are losing.

If you’re not winning more than 50 percent of your chargeback disputes, it’s important to reevaluate your team’s efforts and your business processes to identify the reasons why. Some contributing factors might be:

You’re not providing the right documentation

You might think you’re providing compelling evidence to dispute the chargeback, but it’s possible that your documentation isn’t truly addressing the reason code. For example, demonstrating a previous customer history of transactions is compelling evidence in some cases, but it won’t really address a customer’s claim that they never received their goods or services. Make sure you are gathering the right evidence that supports your defense.

You don’t have the right internal processes

Are you seeing multiple chargebacks every month with the same reason code? If so, you should be addressing the root of the matter to prevent them from happening in the first place. If you’re unable to provide the right documentation, improve your record keeping. Or if customers are filing chargebacks for card charges they don’t understand, find ways to clarify your payment process. You should do whatever it takes to address these recurring issues in order to prevent chargebacks and retain customers.

You fight almost every chargeback

Unfortunately, it’s not realistic to expect a reversal of every chargeback. That’s why you should be smart about which ones you choose to fight. While it’s certainly worth reviewing the cause of every chargeback, only dispute the ones you deem worthy of the money, time and resources. If it makes sense to fight a chargeback, you must also be able to gather the proper compelling evidence that addresses the reason code. Being smarter about where you invest your energy by focusing on fighting chargebacks you’re most likely to successfully reverse is a smart way to increase your win rate.