Direct answerthe chargeback rate is the percentage of your sales that came back as a forced reversal. At Mundpay, the maximum tolerated limit is 0,90% of transacted volume. You calculate it by dividing the number of chargebacks by the number of transactions in the same period. Staying below that ceiling keeps the account healthy; exceeding it can trigger fines from acquirers, a higher reserve, and, in the limit, the risk of a block. The way to keep the rate low is to attack the causes and resolve disputes still at the alert stage.

How Is the Chargeback Rate Calculated?

The math is simple, and you should be able to do it in your head. The chargeback rate is the number of chargebacks divided by the number of approved transactions in the same period, multiplied by 100:

  • Formula: (chargebacks ÷ approved sales) × 100 = rate in %.
  • Example: 5 chargebacks in 1.000 sales result in 0,50%.
  • Another example: 9 chargebacks in 1.000 sales result in 0,90%, exactly at the tolerated ceiling.

Some systems calculate by value instead of by count, meaning how much of your revenue came back as a reversal. The principle is the same: it's the slice of your volume that turned into a dispute. The point to watch is the period. An operation that had a weak sales month and a concentrated batch of chargebacks can see the percentage climb fast, because the denominator shrank. That's why the number needs to be tracked closely, not checked once a quarter.

What Is the Acceptable Chargeback Limit?

At Mundpay, the maximum tolerated limit is 0,90% of transacted volume. Translated into everyday terms: out of every 1.000 approved sales, up to 9 can turn into a chargeback before the account enters a risk zone.

It's worth treating this number as a ceiling, not a target. Operating right up against 0,90% is operating at the edge of safety, with no margin for a worse month. The healthy scenario is staying well below it, leaving room for the natural swings of any sales operation. Anyone working with Nutra and Info for international markets, where dispute risk is structurally higher, needs that margin even more than someone selling domestically.

The important detail is that this ceiling isn't a whim on Mundpay's part. It reflects what acquirers and card networks consider acceptable. You can check the full cost and limit structure on the payments and fees page, where the percentage sits alongside the other account terms.

What Happens If You Exceed the Limit?

Going past 0,90% is not a cosmetic event. It triggers consequences in a chain, and you feel the first one in every individual dispute, well before you hit the ceiling:

  • Cost per chargeback: every chargeback costs a fixed R$ 60.00 plus the return of the sale's gross value. In other words, you lose the product, refund the money, and still pay the fee.
  • Fines from acquirers: a rate above the ceiling can trigger penalties charged by the processing chain, which treats a high volume of reversals as operational risk.
  • Higher reserve: the security reserve, which at Mundpay is 15% of the transaction value for 60 days, exists precisely to cover disputes. High-risk operations can face stricter terms.
  • Risk of restriction or block: in persistent cases, a rate chronically above the limit can lead to account restriction. No platform indefinitely sustains an operation that generates losses for the card processing chain.

The honest reading is: the 0,90% limit is not a line you want to test. It's a line you want to keep at a distance, because the cost of crossing it is always higher than the cost of preventing it.

Why Do Card Networks Monitor This?

Chargeback exists to protect buyers from fraud and undelivered purchases. It's a legitimate mechanism. But from the point of view of whoever operates the card network, a high volume of forced reversals is the most direct signal that something is wrong in an operation: fraud, a broken promise, a delivery problem, or a charge the customer doesn't recognize.

That's why card networks and acquirers set limits and continuously track the percentage for every seller. It's not a one-time check, it's ongoing monitoring. The logic is that of an immune system: every operation needs to stay within a behavior range so it doesn't put the trust of the whole chain at risk. Anyone who stays within the limit keeps full access to processing. Anyone who exceeds it ends up in the crosshairs of penalties, because they've become a risk that reaches beyond their own account.

Understanding this changes the seller's posture: the goal isn't to "hide" chargebacks, it's to reduce the causes that produce them, because the system sees the result either way.

We see our customers as invited guests to a party, and we are the hosts. It is our job every day to make every important aspect of the customer experience a little bit better.

Jeff Bezos Source: Jeff Bezos's letters to Amazon shareholders.

How Do You Keep the Chargeback Rate Low?

Keeping the rate below the limit is the result of discipline across a few fronts, not a single trick. The most important ones:

  • Clear, immediate delivery. A good share of chargebacks come from a buyer who didn't recognize the charge or didn't receive access. Email confirmation, fast delivery, and clear communication cut into that slice.
  • A recognizable invoice descriptor. If the name that shows up on the card statement has no connection to what the customer bought, the reversal becomes reflexive. A clear descriptor prevents the dispute before it's born.
  • Fast support. A customer who can reach you and resolve the issue doesn't open a chargeback. One who can't, does. A responsive support channel is chargeback prevention, not just after-sales.
  • Active antifraud. At Mundpay, the risk team is proactive and contacts the seller before any restriction. Around 90% of alerts are resolved before turning into a formal chargeback. It's worth digging deeper into how fraud prevention for international digital products works.

For a full view of prevention tactics applied to sales outside your home market, the guide on chargeback in international sales brings together the step-by-step that sustains a healthy rate over time.

What Should You Do If You're Already at the Limit?

If your rate is already brushing up against 0,90%, the answer isn't to panic, it's to act on two speeds at once.

In the short term, focus on resolving disputes before they count against you. Pre-chargeback is an alert issued by the banking system before a chargeback becomes formal. At Mundpay, that alert costs R$ 80.00, and resolving the dispute at that stage keeps it from weighing on your percentage. The guide on how to resolve a dispute at the pre-chargeback stage shows the procedure in detail. Since around 90% of alerts are resolved before turning into a chargeback, this is your point of greatest leverage when the rate is tight.

In the medium term, attack the source. Review the product, the sales page, and the promise: a high rate almost always points to a misaligned expectation somewhere in the funnel. Adjust the invoice descriptor, reinforce support, and engage the platform's own risk team, which at Mundpay works alongside the seller instead of simply blocking. Reducing the denominator of disputes is what brings the rate back into the safe zone sustainably.

Demonstrate to people that you can help them by actually helping them.

Frank Kern Source: the author's material on Intent-Based Branding.

In Short: The Acceptable Chargeback Rate

  • The chargeback rate is the number of chargebacks divided by the number of transactions in the same period, multiplied by 100.
  • At Mundpay, the maximum tolerated limit is 0,90% of transacted volume, meaning up to 9 chargebacks for every 1.000 sales.
  • This ceiling should be treated as a safety limit, not a target: the ideal is to operate well below it.
  • Every chargeback costs a fixed R$ 60.00 plus the return of the gross value; exceeding the limit can trigger fines from acquirers, a higher reserve, and the risk of a block.
  • Card networks monitor the rate continuously because it's a direct signal of fraud or dissatisfaction.
  • To keep the rate low: clear delivery, a recognizable descriptor, fast support, active antifraud, and resolving disputes still at the pre-chargeback stage.

FAQ: Frequently asked questions on acceptable chargeback rates

What chargeback rate is acceptable?

On Mundpay, the maximum tolerated chargeback rate is 0.90% of transaction volume. That means out of every 1,000 approved sales, up to 9 can become chargebacks without your account entering risk zone. The calculation divides chargebacks by transactions in the same period. Keeping your rate well below that ceiling is the ideal scenario, because acquirers and card networks monitor this percentage continuously.

How do you calculate chargeback rate?

Chargeback rate equals number of chargebacks divided by number of approved transactions in the same period, multiplied by 100. Example: 5 chargebacks in 1,000 sales give you 0.50%. Some systems calculate by amount instead of count, but the principle stays the same: how much of your volume came back as forced reversals. On Mundpay the reference ceiling is 0.90% of volume.

What happens if you exceed the chargeback limit?

Going over the ceiling exposes operations to chain consequences. Each chargeback already costs 60 BRL fixed plus the full sale amount back. Beyond the direct cost, a rate above the tolerance can trigger acquirer fines, higher reserves, and in persistent cases, account restrictions or blocks. Card networks treat high rates as risk signals and can penalize the whole processing chain.

Why do card networks monitor chargeback rates?

Because chargebacks are a direct risk and satisfaction signal. High reversal volume points to fraud, delivery issues, or broken promises. To protect the system overall, card networks and acquirers set limits and watch each operation continuously. Those within limits keep full processing access, those above get penalties.

How do you keep your chargeback rate low?

Attack the causes: clear product delivery, recognizable invoice descriptor, fast support, and active fraud detection. On Mundpay the risk team is proactive and reaches out before restrictions, and about 90% of pre-chargeback alerts resolve before formal chargebacks happen. Solving disputes at the alert stage for 80 BRL beats letting them count against your rate.

What's the difference between refund and chargeback?

A refund happens when you get the buyer's request and voluntarily return their money. A chargeback happens when the buyer goes straight to their bank and contests without talking to you first. A refund costs the sale amount. A chargeback costs the amount plus a processing fee, plus it hurts your gateway reputation. Cutting chargebacks means responding fast to unhappy buyers before they escalate to the bank.

How does Mundpay help you keep chargebacks low?

Mundpay runs a proactive risk team that resolves about 90% of chargeback alerts before they become formal disputes. When suspicious patterns trigger, the team reaches out to confirm legitimacy and discuss risk reduction. Plus smart retry recovers failed recurring charges that would otherwise become chargebacks. And award-winning support helps you resolve complaints fast. Together these cut chargeback volume.