High chargeback merchant accounts require custom banking solutions in order to process payments. Most standard businesses maintain low chargeback rates under one percent. If your company receives too many chargeback disputes it may be time to consider finding a payment processing company that supports your needs, such as those offering high risk merchant accounts.
When Are Chargebacks Too High?
Every chargeback is bad for business, but the occasional one does happen. Nonetheless, merchant account providers set standard limits on what they expect a normal business should receive. The normal allowed range for chargebacks is anywhere under 1.5% – 2.0%. Exceeding these numbers can get you in trouble with your payment processor who may end up dropping your account if they see these numbers trending upward.
