What is a chargeback ratio and what happens if it is too high?

Your chargeback ratio is chargebacks divided by total transactions in a month. Visa and Mastercard set thresholds at 1% (Visa Early Warning triggers at 0.65%). Exceeding these thresholds puts you in a monitoring program with monthly fines of $25,000-$100,000. At 2%, processors can terminate your account entirely.