Chargeback Ratio Headroom Checker

Shows a card-accepting seller's current chargeback rate and how many more disputes the business can absorb this month before crossing a network monitoring threshold.

Your estimate

Current chargeback ratio...

Most chargebacks you can carry at this volume...

Additional chargebacks you can absorb this month...

Status...

Estimates only. Assumptions are listed below, and you can change every input.

Card networks watch the share of your transactions that turn into chargebacks, and once a merchant crosses a program threshold the consequences escalate: monthly fees, mandatory remediation plans, and in the worst case losing the ability to accept cards. Stripe and other processors often act before the network does. The number that matters is usually simple, chargebacks divided by transactions in the same month, but few sellers know how much room they have left.

Enter this month's transaction count and chargeback count along with the ratio and minimum count your processor applies. The checker computes your current rate, the maximum chargebacks you can carry at this volume without being flagged, and how many more you can absorb. Thresholds are inputs rather than hard-coded values, because programs change and processors set their own early-warning levels.

How to use this tool

Enter the number of card transactions and the number of chargebacks received in the same month.
Set the ratio and minimum count thresholds your processor or card network applies, and the warning level you want to be alerted at.
Read your current ratio, the most chargebacks you can carry at this volume, and how many more you can absorb before a flag.

What the math assumes

A month is flagged only when both the chargeback count and the ratio reach their thresholds, which is how the major network programs are structured; some processors act on ratio alone.
Ratio is chargebacks divided by transactions in the same calendar month; networks may match disputes to the month the original sale settled, which can shift the result.
Default thresholds of 0.9% and 100 chargebacks are commonly cited program levels, not a guarantee; confirm the current figures with your processor.
The warning level is a share of the trigger count that you choose; the default of 75% is a cautious convention, not a network rule.
Fraud-only ratios, which some programs track separately using fraud reports rather than chargebacks, are not modeled.

Frequently asked questions

Which month do the transactions and chargebacks belong to?

Most programs compare chargebacks received in a month with transactions processed in that same month. If your sales are seasonal, a slow month after a busy one can spike the ratio because disputes lag sales by several weeks.

Why does the checker say I am under the threshold when my ratio is above 0.9%?

Because you are under the minimum count. Network programs require both a high ratio and a minimum number of chargebacks before a merchant is enrolled. Your processor can still contact you, so treat an elevated ratio as a warning.

Does winning a dispute remove it from the ratio?

No. The chargeback counts once it is filed, regardless of outcome. Only prevention, refunds issued before a dispute is filed, and dispute alerts that let you refund early keep the count down.

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