> ## 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, Square

> Chargeback Rate for Square 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

> Chargeback rate (settled disputes resulting in funds pulled). Visa monitoring threshold is 0.9% (VAMP); above this Square may suspend or restrict the account. The closely-related dispute-rate counts cases opened; this card counts cases lost.

|                    |                                                                                                               |
| ------------------ | ------------------------------------------------------------------------------------------------------------- |
| **What it counts** | `COUNT(disputes WHERE status = LOST) / COUNT(payments succeeded) * 100`.                                      |
| **Currency**       | Currency-neutral.                                                                                             |
| **Lag**            | Disputes resolve typically 30, 60 days after opening; chargeback rate is a *trailing* metric.                 |
| **Time window**    | `90D` (longer than dispute-rate to capture resolution lag).                                                   |
| **Alert trigger**  | `>0.9%` (Visa monitoring). `>1.5%` triggers Mastercard ECP. Sentiment inverse-gauge: good \<=0.5, warn >=0.9. |
| **Roles**          | owner, finance, operations                                                                                    |

## Calculation

Calculated automatically from your Square data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

## Worked example

90-day window:

```text theme={null}
Disputes opened       = 47
Disputes won          = 19
Disputes lost (this)  = 28
Successful payments   = 12,400
Chargeback rate       = 28 / 12,400 * 100 = 0.226%
```

Reads:

1. **0.23% is healthy.** Below Square's 0.5% review threshold; well below Visa's 0.9%.
2. **Win-rate of 19 / 47 = 40%** is roughly normal. Strong-evidence merchants reach 60, 70%.
3. **The 28 lost disputes pulled USD \~ 5,000 plus scheme fees (\~ USD 15, 25 per case = \~ USD 600).** True cost is \~ USD 5,600 plus the time spent responding.

## Sibling cards merchants should reference together

| Card                                                                           | Why pair                                      |
| ------------------------------------------------------------------------------ | --------------------------------------------- |
| [`squ_dispute_rate`](/nerve-centre/kpi-cards/square/dispute-rate)              | The opening-rate; this card is the lost-rate. |
| [`squ_refund_rate`](/nerve-centre/kpi-cards/square/refund-rate)                | Refund as inverse to chargeback.              |
| Stripe [`stripe_chargeback_rate`](/nerve-centre/stripe/stripe_chargeback_rate) | Cross-PSP.                                    |

## Reconciling against the vendor's own dashboard

**Where to look in the Square Dashboard:**

> **Disputes → Resolved → Lost** (filter by date).

**Why ours may differ:**

| Reason            | Direction                                                                                     |
| ----------------- | --------------------------------------------------------------------------------------------- |
| Resolution timing | A dispute filed in month 1, lost in month 2: which month's rate is it in? Ours uses lost-date |
| In-progress       | Disputes still open are NOT in this card; only settled-against                                |

**Cross-connector reconciliation:** chargeback rates align across PSPs as a function of fraud / dispute mix; outlier rates on one rail suggest acquirer routing or 3DS-coverage difference.

## Known limitations / merchant FAQs

**"My chargeback rate hit 1.0%, what now?"**
Immediate action: pause new high-risk traffic, audit recent disputes for patterns (one BIN, one IP, one shipping address), tighten Square Risk filters, enable 3DS step-up on suspicious patterns. If sustained, Square may restrict your account or require a rolling reserve. Engage Square Risk team proactively.

**"Win-rate, how high can it go?"**
Strong-evidence merchants reach 60, 75%. Digital-only goods (no shipping evidence) cap around 25, 40%. Subscriptions with weak cancel UX cap around 15, 25%.

**"Visa VAMP vs Mastercard ECP, what's the difference?"**
Visa's Acquirer Monitoring Program triggers at 0.9% chargeback rate or USD 75k volume; Mastercard's Excessive Chargeback Program at 1.5%. Both impose fines and acquirer pressure.

**"Reasons that win versus lose?"**
Chip + PIN cases (liability shift) win automatically. Tracked-shipping cases with proof-of-delivery to the cardholder address win frequently. CNP fraud (10.4) cases lose unless the merchant has 3DS authentication evidence. Subscription-friction cases lose unless the merchant can show explicit re-consent on each charge.

**"Currency neutrality?"**
Yes.

**"Lag, how to interpret?"**
Today's chargeback rate reflects disputes opened 30, 60 days ago. A spike today is a lagging signal of bad traffic 1, 2 months ago, by the time you see it, current traffic is already different. Use [`squ_dispute_rate`](/nerve-centre/kpi-cards/square/dispute-rate) for the leading indicator.

**"Square holds reserve when CB rate climbs?"**
Yes. Above 0.9% Square may impose a rolling reserve (1, 5% of volume held for 90, 180 days) to cover potential future chargebacks.

***

### Tracked live in Vortex IQ Nerve Centre

*Chargeback Rate* is one of hundreds of KPI pulses Vortex IQ tracks across Square 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.