Each online shop, running its business via the Internet, must not exceed chargeback limits set by Visa Europe and MasterCard International.
1. VISA - 2 %
2. MasterCard - 1.5 %
These limits are calculated based on the number of online shop settlements made using payment cards. If a merchant exceeds the set limits, payment card processing services can be suspended or terminated.
What is a chargeback?
Do not confuse it with a refund. Chargebacks take place when a buyer applies to his/her financial institution that has issued the card and disputes the payment, does not acknowledge its legitimacy or complains about the goods/services quality. Usually, this occurs when a vendor refuses to refund the money to a buyer in good faith (refuses to solve a dispute and to make a refund).
If you have more questions related to chargeback, check our FAQ.