> ## Documentation Index > Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt > Use this file to discover all available pages before exploring further. # Chargeback Rate, Authorize.net > Chargeback Rate for Authorize.net stores. Tracked live in Vortex IQ Nerve Centre. How to read it, why it matters, and how to act on it. **Metrics type:** [Supporting Metrics](/nerve-centre/overview#metrics-types-explained) • **Category:** [Payment Gateway](/nerve-centre/connectors#connectors-by-type) ## At a glance > The percentage of Authorize.Net transactions that **resulted in a chargeback**. Buyer-initiated reversal through the issuing bank. The most expensive type of payment loss: scheme fees plus the funds plus the time-cost of dispute response. | | | | ------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **What it counts** | `COUNT(chargebacks) / COUNT(settled transactions) * 100`, in the same window. | | **API source** | Chargeback events arrive on the FDS (Fraud Detection Suite) chargeback feed and the [`getUnsettledTransactionListRequest`](https://developer.authorize.net/api/reference/index.html#transaction-reporting) endpoint with `chargeback` filter. | | **Currency** | Currency-neutral (rate). | | **Visa / Mastercard threshold** | The networks levy fines on merchants exceeding 0.9% chargeback ratio (Visa Acquirer Monitoring Program; Mastercard Excessive Chargeback Merchant). Above 1.0%, merchant accounts are at risk of termination. | | **Refunds** | Counted separately in [`aut_refund_rate`](/nerve-centre/kpi-cards/authorize-net/refund-rate). Refund-then-chargeback is unusual but possible. | | **Failed payments** | Excluded (post-success only). | | **Healthy baseline** | \<0.5% chargeback rate is healthy. 0.5 to 0.9% is warning. >0.9% is critical (acquirer monitoring kicks in). | | **eCheck.Net (ACH) returns** | Tracked separately as ACH returns (NACHA codes), not chargebacks. | | **Time window** | `30D vsP`. | | **Alert trigger** | `>0.9%` absolute. | | **Sentiment key** | `gauge_inverse: good<=0.5, warn>0.9` | | **Roles** | owner, finance, operations | ## Calculation Calculated automatically from your Authorize.net data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading. ## Worked example "Heartland Hardware Co.", 30 days ending 02 May 26. | Channel | Settled | Chargebacks | Rate | | ----------- | --------- | ----------- | --------- | | Web | 1,840 | 5 | 0.27% | | B2B portal | 620 | 0 | 0.00% | | ARB | 184 | 1 | 0.54% | | MOTO | 320 | 0 | 0.00% | | **Blended** | **2,964** | **6** | **0.20%** | Chargeback reasons (top 6 in this window): | Reason | Count | Description | Action | | ------ | ----- | ------------------------------------- | ---------------------------------------------------------------------------------- | | 4837 | 2 | No cardholder authorisation | Likely friendly fraud or stolen card; submit signed proof-of-delivery + AVS match. | | 4853 | 2 | Cardholder dispute / not as described | Customer claims item not received or wrong; submit shipping records + photos. | | 4855 | 1 | Goods not received | Submit tracking + delivery confirmation. | | 4863 | 1 | Cardholder does not recognise | Submit transaction details + email correspondence. | What the merchant should notice: 1. **Blended 0.20% is healthy.** Below 0.5% threshold. B2B portal at 0.00% is structural (procurement-managed, no consumer-dispute pathway). 2. **ARB at 0.54% is the alert.** Subscription chargebacks usually mean the customer cancelled but kept getting billed; the customer dispute the unrecognised charge. Operational fix: aggressive ARB-cancellation UX, clear billing-descriptor (the line on the bank statement). 3. **Reason 4837 (no authorisation) at 2 is normal.** This is the "friendly fraud" pattern: customer denies a real purchase. Defend with signed proof-of-delivery, AVS match, IP and device fingerprint. 4. **Win rate matters.** Authorize.Net with strong Cardinal Cardinal Commerce 3DS data and AVS match has a 35 to 50% win rate on disputes. Heartland should always defend; cost is low (USD 25 to 50 in time) vs USD 4,200 in lost funds. 5. **Visa CE 3.0 / Mastercard Compelling Evidence 3.0** allow merchants to push back on "card-not-recognised" reason 4837 with proof of prior similar transactions. Authorize.Net supports this via the dispute-management interface. ## Sibling cards merchants should reference together | Card | Why pair it with Chargeback Rate | | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------- | | [`aut_dispute_rate`](/nerve-centre/kpi-cards/authorize-net/dispute-rate) | Disputes-in-flight, the precursor (some get withdrawn before becoming chargebacks). | | [`aut_refund_rate`](/nerve-centre/kpi-cards/authorize-net/refund-rate) | Merchant-initiated cousin. High refund rate prevents chargebacks. | | [`aut_top_payment_methods`](/nerve-centre/kpi-cards/authorize-net/top-payment-methods) | Network-specific patterns; Amex chargeback rules differ from Visa/MC. | | [`aut_threedsecure_abandon_rate`](/nerve-centre/kpi-cards/authorize-net/3ds-abandonment-rate) | 3DS-passed transactions are liability-shifted to the issuer. | | Stripe [`stripe_dispute_rate`](/nerve-centre/kpi-cards/stripe/dispute-rate) / PayPal [`pp_chargeback_rate`](/nerve-centre/paypal/pp_chargeback_rate) | Cross-PSP comparison. | ## Reconciling against the vendor's own dashboard **Where to look in the Authorize.Net Dashboard:** [account.authorize.net](https://account.authorize.net) → **Reports → Chargebacks**, with date filter. The acquirer's monthly statement also shows chargeback count and fees. **Why our number may differ:** | Reason | Direction | Why | | ----------------------------- | --------------------- | ------------------------------------------------------------------------------------------ | | **Time zone** | Boundary days off | Pacific batch cut-off vs UTC. | | **Chargeback receipt timing** | Theirs may show later | Networks deliver chargeback notifications on a delay (1 to 5 days post-dispute). | | **Won-vs-lost flag** | Either | A chargeback initially counted may flip to "won" later; we use original-case-issued count. | **Cross-connector reconciliation:** | Comparison | Expected | Why | | --------------------------------------------------------------------------------------------------- | --------------------- | ------------------------------------ | | `aut_chargeback_rate` ↔ acquirer statement chargeback count | Equal | Same source data. | | `aut_chargeback_rate` ↔ [`stripe.stripe_dispute_rate`](/nerve-centre/kpi-cards/stripe/dispute-rate) | Differ by traffic mix | Different merchant exposure per PSP. | ## Known limitations / merchant FAQs **What's a healthy chargeback rate?** Below 0.5% in count and below 0.9% in dollar terms (Visa Acquirer Monitoring Program threshold). Above 0.9% triggers acquirer review and potential merchant-account termination. **Visa CMP / Mastercard MCM, what are these?** Visa Acquirer Monitoring Program: merchants exceeding 100 chargebacks/month AND 0.9% rate enter monitoring. Mastercard Excessive Chargeback Merchant program: similar thresholds. Both impose monthly fines (USD 25,000 to USD 100,000+) and require remediation plans. **Friendly fraud, what is it?** Customer makes a real purchase, then disputes the charge to recover money while keeping the goods. Common reasons cited: "I don't recognise this charge", "didn't receive it" (when they did). Defend with signed-delivery proof, AVS match, device fingerprint, prior-purchase history. **Visa CE 3.0 / Mastercard CE 3.0, how to use?** Compelling Evidence 3.0 allows merchants to defend "card-not-recognised" disputes by showing prior similar transactions from the same customer (same IP, same shipping address, same device). Authorize.Net's dispute-management interface supports CE 3.0 evidence submission. Win rate with CE 3.0 evidence: 60 to 80%. **ACH returns, do they count as chargebacks?** No. NACHA returns are tracked separately. Different defence pathway (you can't "defend" a NACHA return; you can only re-debit if customer authorises). **3DS-passed liability shift, real?** Yes for Visa and Mastercard cards (with 3DS 2.x). When the customer authenticates via 3DS challenge, liability for fraud-disputes shifts to the issuer. Heartland should ensure 3DS is firing on high-value web transactions. **Subscription (ARB) chargebacks, why higher rate?** Customers forget about subscriptions and dispute the charge as unrecognised. Mitigations: clear cancel UX, billing-descriptor that customers recognise, monthly email reminder before charge. **Visa ownership of Authorize.Net, dispute handling?** No mechanical change. Visa-card disputes go through the same Visa dispute network. The Authorize.Net dispute-management UI is the merchant's interface; nothing changed structurally with Visa parent ownership. **Cost of a chargeback?** Direct: USD 15 to USD 50 acquirer fee per case + the disputed amount (held until resolution). Indirect: 1 to 4 hours of merchant time to respond. Total: roughly USD 100 to USD 200 per chargeback for a USD 100 disputed amount, before the lost goods. *** ### Tracked live in Vortex IQ Nerve Centre *Chargeback Rate* is one of hundreds of KPI pulses Vortex IQ tracks across Authorize.net and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English. [Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.