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What happens if my chargeback rate gets too high?

Agentis analysis of Mastercard's Excessive Chargeback Merchant program shows a merchant who breaches the monitoring threshold faces monthly assessments starting at $1,000 and scaling past $100,000 for repeat violations. That's on top of the standard per-dispute fee, not instead of it.

Inputs

Total card transactions processed in a typical month.

Total chargebacks (disputes) received in that same month.

Results

Your Chargeback Ratio

30 bps

Basis Points Over Visa's "Excessive" Threshold (70bps)

-40 bps

Min. Published Monthly Assessment If In Violation (Mastercard ECM)

$1,000

Max. Published Monthly Assessment, Repeat Violation (Mastercard ECM)

$100,000

Visa dispute-ratio monitoring tiers (Acquirer Monitoring Program, 2025)

Download CSV
TierThresholdNotes
Above Standard≥50 bpsEarly monitoring tier
Excessive≥70 bpsHighest standard Visa monitoring tier
Excessive Merchant (regional)150–220 bpsMerchant-level threshold; exact bps varies by Visa region

Source: Visa — Acquirer Monitoring Program Fact Sheet (2025) (retrieved August 7, 2026) — Visa's fact sheet defines ratio thresholds but doesn't publish a dollar-per-dispute fine. See the Mastercard table below for published dollar assessments.

Mastercard Excessive Chargeback Merchant program — published monthly assessments

Download CSV
ProgramMonthly Assessment RangeNotes
ECM (Excessive Chargeback Merchant)$1,000–$100,000Assessed monthly while in violation; escalates with consecutive violation months
HECM (High Excessive Chargeback Merchant)$2,000–$200,000Higher-severity tier; also carries a $5-per-chargeback issuer recovery fee beyond 300 chargebacks/month

Source: Mastercard Excessive Chargebacks FAQ (via J.P. Morgan Merchant Services) (retrieved August 7, 2026) — Published via an acquirer's distribution of Mastercard's program terms. Mastercard's own exact ratio/count entry threshold is set in the acquirer notice and isn't independently confirmed here. Contact your acquirer for your specific entry criteria.

Chargeback ratio at common monthly volumes (vs. Visa's Excessive threshold)

Download CSV
Monthly TransactionsMonthly ChargebacksRatiovs. Excessive Threshold (70 bps)
5,0001020 bps50 bps under
5,0002550 bps20 bps under (at Above Standard)
5,0003570 bpsAt threshold
5,00050100 bps30 bps over

Source: Visa — Acquirer Monitoring Program Fact Sheet (2025) (retrieved August 7, 2026) — Agentis synthesis: illustrative transaction/chargeback combinations run through Visa's published ratio formula (chargebacks ÷ transactions × 10,000) against its published 70bps Excessive threshold.

How we calculate this

Visa's monitoring tiers come from Visa's own 2025 Acquirer Monitoring Program fact sheet. Mastercard's assessment ranges come from an acquirer-published copy of Mastercard's official Excessive Chargebacks program terms. We cite the acquirer distribution explicitly since we couldn't locate a direct Mastercard-hosted version. Read our full methodology →

Expert Insight

Most merchants only think about the chargeback fee: $15, refunded if you win. That's the wrong scale of the problem for merchants running promotions or acquisition campaigns that spike chargeback rates temporarily. Cross Visa's or Mastercard's monitoring threshold and the exposure jumps from a per-dispute fee to a monthly assessment. Mastercard's own published range starts at $1,000 and scales past $100,000 for repeat violations. That's a fixed cost regardless of your average order value, which is why the ratio itself, not any single dispute, is the thing worth watching.

Udi Razmovich, CTO & Co-Founder →

Frequently Asked Questions

Is the excessive-chargeback penalty instead of or on top of the normal per-dispute fee?

On top of. The per-dispute fee (see our true cost of a chargeback page) is charged for every individual chargeback regardless of your overall ratio. The Visa and Mastercard monitoring-program assessments described above are a separate, additional monthly cost that only applies once your chargeback ratio crosses the network's threshold.

Related Pages

What does a chargeback actually cost my store?

Agentis analysis of Shopify Payments' and Stripe's published 2026 fee schedules shows every chargeback carries a fixed $15 dispute fee. Lose the dispute, and the full order value gets reversed on top of it. Industry-reported win rates put the odds of getting that money back at under 44%, per Chargebacks911's 2026 data.

Does the type of chargeback dispute change what it costs?

Agentis analysis of Stripe's, Shopify Payments', Mastercard's, and Visa's published dispute documentation shows dispute fees are flat: $15 at both Shopify Payments and Stripe, regardless of reason code. What changes across Stripe's 8 documented dispute categories is the evidence required to contest each one, not the price.

All Sources on This Page

  • Visa — Acquirer Monitoring Program Fact Sheet (2025)
  • Mastercard Excessive Chargebacks FAQ (via J.P. Morgan Merchant Services)

Agentis finds margin leaks automatically.

Data last updated August 7, 2026. Browse all Chargebacks pages →