Chargeback Prevention for Small Business

Watch Out For

Chargeback ratio above 1% of transaction count triggers processor monitoring and eventual account risk. Track your ratio monthly. If it's trending up, investigate the root cause before your processor does.

Frequently Asked Questions

What causes most chargebacks for small businesses?

The top causes: unrecognized billing descriptor (customer doesn't remember the purchase), friendly fraud (buyer's remorse filed as fraud), non-delivery disputes, and subscription billing misunderstandings.

How do I fight a chargeback?

Submit evidence before the deadline: order confirmation, delivery proof, communication history, signed terms. One clear paragraph + supporting documents. Submit everything to the processor portal.

What is a chargeback ratio?

Your chargeback ratio is total chargebacks divided by total transactions in a month. Card networks flag ratios above 0.9–1%. Above that threshold triggers processor reviews and potential account termination.