> ## 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, Recharge > Chargeback Rate for Recharge 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 successful Recharge subscription charges that became **chargebacks** (customer-initiated disputes through their issuing bank). Chargebacks happen on the underlying processor (Shopify Payments / Stripe), not on Recharge itself, but they surface back to Recharge as `chargeback` events on the original charge. Subscription chargebacks are dominated by friendly fraud ("I don't recognise this charge") and cancel-flow confusion ("I thought I cancelled"). Card networks impose merchant penalties when chargeback rate exceeds 1.0% (Visa CB Monitoring) or 1.5% (Mastercard ECP), making this a regulatory metric, not just a financial one. | | | | --------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **What it counts** | `COUNT(charges WHERE chargeback raised in window) ÷ COUNT(SUCCESS charges in window) × 100`. | | **Currency** | Currency-neutral. | | **Refunds** | NOT counted as chargebacks (refunds are merchant-initiated). | | **Pre-arbitration / arbitration cases** | Counted as chargebacks regardless of eventual outcome. Won-by-merchant cases still in the rate. | | **Friendly-fraud subset** | Sub-cluster of "I don't recognise this charge" disputes; very common on subscription rebills. | | **Time window** | `30D vsP` default. | | **Alert trigger** | `>0.75%` absolute (network threshold 1%); `+50%` vsP relative. `sentiment_key: chargeback_rate` (gauge inverse). | | **Reading hints** | Q1 spike is structural (post-holiday "I don't remember signing up" cohort). Sustained >1% triggers Visa CB Monitoring, which adds fines and operational burden. | | **Roles** | owner, finance, operations | ## Calculation Calculated automatically from your Recharge data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading. ## Worked example "Daily Greens Co". 30-day window 03 Apr 26 to 02 May 26. | Chargeback category | Cases | USD lost | Avg / case | Reason code | | -------------------------------- | ------ | ------------- | ---------- | ----------- | | Friendly fraud "don't recognise" | 14 | USD 1,106 | USD 79 | 4863 / 10.4 | | Cancel-flow confusion | 6 | USD 474 | USD 79 | 4855 / 13.1 | | Genuine fraud (stolen card) | 2 | USD 158 | USD 79 | 4837 / 10.1 | | Quality "not as described" | 4 | USD 316 | USD 79 | 4853 / 13.6 | | **Total chargebacks** | **26** | **USD 2,054** | | | ```text theme={null} Chargeback rate (this card) = 26 ÷ 20,656 × 100 = 0.126% vs prior 30 days = 0.110% vsP delta = +0.016 pp (+15% relative) Status: well below 1% network threshold; not alerting. ``` What the merchant should notice: 1. **0.126% is healthy.** Below 0.5% is excellent for subscription. Above 0.75% triggers our internal alert; sustained above 1% triggers Visa CB Monitoring with associated fees. 2. **Friendly fraud (14 cases) dominates.** Customers signed up months ago, forgot, see a USD 79 rebill on their statement, dispute it as "I don't recognise". Mitigation: clearer billing-descriptor (DAILY GREENS SUBSCRIPTION not DGSUBS), pre-rebill email reminder, easy-to-find subscription dashboard. 3. **Cancel-flow confusion (6 cases) suggests a UX bug.** Customers thought they cancelled but didn't fully complete the cancel-flow (e.g. they paused but expected cancel). Audit the customer-portal cancel-flow for clarity. 4. **Genuine fraud is small (2 cases).** Subscription rebills tend not to attract stolen-card fraud because the original signup card has already been verified weeks/months earlier; stolen cards are rarely used for recurring. 5. **Each chargeback costs \~USD 25, 50 in scheme fees** beyond the disputed amount. The 26 cases this period cost roughly USD 650, 1,300 in fees on top of the USD 2,054 disputed. Total impact \~USD 3,000. ## Sibling cards merchants should reference together | Card | Why pair it with Chargeback Rate | | --------------------------------------------------------------------------------- | --------------------------------------------------------------------------------- | | [`rec_dispute_rate`](/nerve-centre/kpi-cards/recharge/dispute-rate) | Equivalent / overlapping metric depending on processor terminology. | | [`rec_refund_rate`](/nerve-centre/kpi-cards/recharge/refund-rate) | High refund rate often *prevents* chargebacks (refunded customers don't dispute). | | [`rec_total_volume`](/nerve-centre/kpi-cards/recharge/total-volume) | The denominator for the rate. | | [`rec_top_payment_methods`](/nerve-centre/kpi-cards/recharge/top-payment-methods) | Amex chargebacks higher; method-mix matters. | | Stripe / Shopify Payments dispute rate | Underlying processor view. | ## Reconciling against the vendor's own dashboard **Where to look in the Recharge merchant portal:** [admin.rechargepayments.com](https://admin.rechargepayments.com). Recharge surfaces chargebacks under **Recharge Admin → Charges → Chargebacks**. The underlying processor (Stripe Disputes, Shopify Payments Disputes) is the source of truth and has more case-detail (evidence upload, response deadline) than Recharge admin. **Why our number may legitimately differ:** | Reason | Direction | Why | | ----------------------------- | ----------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------- | | **Chargeback case lifecycle** | Theirs may show retrospective | A chargeback can flip status (won, lost, withdrawn) over weeks. Our snapshot captures the count at sync; final outcome reconciliation lags. | | **Time zone bucketing** | Boundary days | Standard. | **Cross-connector reconciliation:** | Comparison | Expected relationship | When divergence is legitimate | | -------------------------------------------------------------- | --------------------- | -------------------------------------------------------------------- | | `rec_chargeback_rate` ↔ Stripe / Shopify Payments dispute rate | Should match closely | Same underlying cases. | | `rec_chargeback_rate` \< `rec_refund_rate` | Almost always | Refunds are merchant-initiated and far more common than chargebacks. | ***
Documentation cross-reference * [`stripe.stripe_dispute_rate`](/nerve-centre/kpi-cards/stripe/dispute-rate) * [`recurly.rec_chargeback_rate`](/nerve-centre/kpi-cards/recurly/chargeback-rate)
## Known limitations / merchant FAQs **"My chargeback rate jumped, what happened?"** Most subscription chargeback spikes are friendly fraud waves: a customer cohort that signed up months ago gets a rebill, doesn't recognise it, disputes through their bank. Mitigation: clearer billing-descriptor, pre-rebill email, easier cancel-flow. **"What's the regulatory threshold?"** Visa Chargeback Monitoring kicks in at 1.0% (or 100 chargebacks per month, whichever is lower). Mastercard ECP at 1.5%. Crossing those incurs fines (USD 10,000 per month) and forces a remediation plan. Sustained crossings can lead to MATCH-list flagging, which makes acquiring a merchant account elsewhere very difficult. **"Should I fight every chargeback?"** No. The win rate on subscription friendly-fraud chargebacks is typically 25, 40%; below the cost of representment for low-value cases. Fight cases >USD 200, ignore cases \