It depends. Its not always just about the ratio of chargebacks but also volume.
So you might trigger some flags with the card associations if you say have the following
1) 1% chargeback ratio
2) 1% of revenue result in chargeback
3) Have like 50-100 (forget exact number) of chargebacks a month for like x consecutive months.
If you don't fix the problem, then bad things happen like additional fines....etc.
So for merchants with very low volume, a higher chargeback rate is sometimes permissible. Acquiring banks have their own risk assessment so they may allow it or may not.
So you might trigger some flags with the card associations if you say have the following
1) 1% chargeback ratio 2) 1% of revenue result in chargeback 3) Have like 50-100 (forget exact number) of chargebacks a month for like x consecutive months.
If you don't fix the problem, then bad things happen like additional fines....etc.
So for merchants with very low volume, a higher chargeback rate is sometimes permissible. Acquiring banks have their own risk assessment so they may allow it or may not.