chargeback rate with recurring billing

Discussion in 'Miscellaneous' started by karthnar, Jul 13, 2007.

  1. karthnar

    karthnar Guppy


    Does anyone know what the "chargeback rate with recurring billing" would be for general online purchases in the Online Industry?


  2. Stephen

    Stephen US Operations Staff Member

    with recurring billing it is not so high, as people see it regularly, with one time online purchases while the % varies greatly by business, the general retail online market can be quite high. There are good ways to reduce the rate including verification via phone of all orders, address verification before shipping, and requiring signature if shipping products to them.
  3. karthnar

    karthnar Guppy


    Thanks for the information.

    Any ideas as to the approximate percentage it would be or even the range (such as between 1-2%).

    And by Regularly, is that a month or a year because that would be different (seeing it 12 times a year versus just once, right)


  4. Atul

    Atul Administrator Staff Member

    ChargeBack in recurring billing will be less when compared with one time purchase.

    Merchant verifies a customer, and make first charge. If merchant verification fails, chargeback happens. Chargeback is generally discovered within a month. When merchant discovers a chargeback, first thing he would do is stop the account and recurring billing.

    % will differ from merchant to merchant based on their verification process. However an industry average could only be available with Visa or MasterCard.
  5. seobeglobal

    seobeglobal Guest

    thank you, i didn't know that either
  6. karthnar

    karthnar Guppy


    Any ideas how low the %age chargeback rate with recurring billing might be for software purchased as a download (with no phone verification...). Visa could not provide the information.

    Also, what with recurring billing, after a Year, people have forgotten about it and want to cancel the payment? Wouldn't that increase the chargeback %age rate?



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