What is the chargeback rate for Mastercard?

Merchants who accept Mastercard should maintain a chargeback rate below 1.5%. Merchants who exceed this threshold risk involuntary placement in the card networkâs dispute monitoring program.

Is there a fee for chargebacks?

Yes. Chargeback fees range from $20 to $100 per filed transaction. Additional surcharges may be imposed upon merchants who receive an excessive number of chargebacks.

Who bears the cost of a chargeback?

Merchants bear the cost of chargebacks in the form of lost revenue, lost merchandise, and chargeback fees.

How do I avoid chargeback fees?

As a merchant, you can avoid chargeback fees by deploying fraud detection tools at checkout, prioritizing best-in-class customer service, minimizing billing and fulfillment errors, clarifying your return and exchange policy, and proactively issuing refunds to disgruntled customers to prevent disputes from being filed.

What is the 540 days chargeback rule for Mastercard?

Cardholders shall have no more than 540 days to file a Mastercard chargeback in situations where the cardholder encounters damaged, defective, missing, or non-delivery of goods.

Author

Roger Alexander

Roger Alexander is a Board Advisor at Chargebacks911. He has more than three decades of experience in the payments and finance space, having served in advisory, directory, and executive roles at a number of firms including Valitor, AvantCard, AltaPay, and Elavon, to name just a few. He attended Harvard Business School to study strategic marketing management.