MasterCard Excessive Chargeback Programme
2 MasterCard Excessive Chargeback
Programme
MasterCard closely monitors all chargebacks.
Every month, Adyen's acquiring partners track every merchant's MasterCard
chargeback to transaction ratio (CTR). The CTR is the number of MasterCard
chargebacks received by the acquirer for a merchant in a calender month, divided
by the number of the merchant's MasterCard sales transactions in the preceding
month.
An example of the calculation and the formula can be seen below.
CTR = # of February Chargebacks
# of January Settled Transactions
Chargeback Month February
# of February chargebacks 1000
# of January settled transactions 50000
February CTR 2.00%
MasterCard monitors two types of merchant's as set out below:
Program Thresholds
Chargeback Monitored Merchant • CTR in excess of 1%; and
• at least 100 charge-backs in 1
calender month.
Excessive Chargeback Merchant • two consecutive calendar months
(the “trigger months”) the
merchant has a minimum CTR of
1,5%; and
• at least 100 chargebacks in each
month; and
• this designation is maintained
until the merchant's CTR is below
1,5 % for two consecutive months
Copyright © Adyen B.V. 2012 5
