Library · Chargebacks · How to run this
Refund on alert when your rate says so
An alert is a clock. You either refund inside the window (and pay the alert fee) or you let the case become a primary chargeback and price a fight. The wrong shortcut is a network “good” dispute % from a slide. Type your fees and this MID’s rate.
Pair: Alert refund vs fight by fee on Chargebacks. Five cash paths: dispute pricing. Alert clocks: alert response clocks.
What you type
Ticket $ — the sale that alerted.
Alert fee $ — this contract’s Ethoca / CDRN / alert vendor fee. Fee-only compares are how you forget the refund.
CB fee $ — processor chargeback fee if a primary posts and you lose.
Fight cost $ — labor and packet cost you actually spend.
Fight win % — last quarter on this family. Not 90%.
Current primary rate % and written threshold % — this MID now, and the MPA / program line. We invent neither.
How the verdict works
Alert + refund = alert fee + ticket.
Fight EV = fight cost + (1 − win %) × (ticket + CB fee).
Rate used = current primary rate ÷ written threshold.
- At or over threshold → refund on alert. The MID already lost the argument.
- At or above 75% of threshold → refund on alert even when fight EV looks prettier. Headroom is the constraint.
- Below that band, and fight EV under alert+refund → fight can be cheaper when the packet is real.
- Otherwise → refund on alert; cash prefers it.
Do not invent a Visa/Mastercard “healthy” dispute %. Do not skip typing the threshold because a vendor dashboard painted green.
What this is not
Not RDR rule design. Not representment packet quality. Not remaining-case capacity tax on refund to deflect. Not the five-path price sheet.
Related: Chargebacks, dispute pricing, alert response clocks, rate vs threshold, Ethoca, CDRN.
Procedure
- Type ticket, alert fee, CB fee, fight cost, and last-quarter win %.
- Type this MID’s current primary rate and written threshold.
- Refund when rate used is high or fight EV is not cheaper.
- Fight only with headroom and a real packet.
Failure modes
- Inventing a network healthy dispute %.
- Comparing alert fee without the ticket refund.
- Using a vendor-slide win rate.
- Skipping the written threshold because a dashboard painted green.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Rate-forced refund
- Current primary rate at or over the written threshold, or in the high-used band — refund on alert even when fight EV looks cheaper.
Work with us — We run this job on your accounts. Services
FAQ
- Is this the five-path dispute price calculator?
- No. [Dispute pricing](/manuals/dispute-pricing) ranks alert, RDR, refund-now, fight, and lose. This page decides at alert time with your rate vs written threshold in the same pass.
- Is this refund-to-deflect?
- Related. [Refund to deflect](/manuals/refund-to-deflect) uses remaining primary CB count. This page uses fee dollars plus current rate % of threshold.
- What win rate do I type?
- Last quarter on this reason family on this MID. Not a vendor slide. Blank hope makes fight look cheap.