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Read count programs and dollar programs apart
Some processors watch count. Some also watch dollars. They are different ratios. Mixing them into one chart is how you miss the line that actually kills the MID.
Pair: Count vs dollar chargeback ratio on Chargebacks. The single-ratio job is rate vs threshold.
Two formulas
Count: primary CB count ÷ approved sales count. Visa’s commonly cited count program sits at 0.90%. Mastercard’s commonly cited count program sits at 1.00%. Those are named defaults. They are not a contract.
Dollars: primary CB dollars ÷ approved sales dollars. The sample dollar line in the calculator is 0.90%. Override if this ISO uses another figure.
The sample window is 71 primary CBs on 8,640 sales, and $6,400 CB dollars on $725,000 sales. Count is about 0.82%. Dollars is about 0.88%. If both lines are 0.90%, dollars is tighter here. Do not average 0.82 and 0.88.
Tighter watch
Tighter means which ratio has used more of its threshold. The calculator paints that watch. Operate to it. If count is at 90% of its line and dollars is at 60%, you run count.
Numerator is primary bank chargebacks. RDR and alert refunds are usually a different bucket. Denominator is approved sales, not CRM paid, not auth attempts.
When this fails
Averaging count and dollar. Using CRM dollars as the sales denominator. Assuming Visa 0.90% applies to a dollar program because the slide said “0.90%.”
Related: MIDs (the ratio attaches here), payments (the debit on the statement).
Procedure
- Read the agreement: count, dollar, or both.
- Pull primary CBs as count and as dollars.
- Pull approved sales as count and as dollars.
- Run both. Operate to the tighter watch.
Failure modes
- Averaging count and dollar.
- Using CRM dollars as the sales denominator.
- Assuming Visa 0.90% applies to a dollar program.
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
- Tighter watch
- The ratio that has used more of its threshold. That is the one that can kill the MID first.
Work with us — We run this job on your accounts. Services
FAQ
- If both thresholds are 0.90%, are the ratios the same?
- No. Count is CBs ÷ approved sales. Dollars is CB dollars ÷ sales dollars. A few large tickets can trip dollars while count still looks calm.
- Can I average the two percentages?
- No. The tighter watch is the one that has used more of its line. That is the one that can kill the MID first.
- Does Visa 0.90% apply to a dollar program?
- Only if this contract says so. The named default is a count program operators quote. Read the agreement for this MID.