The average charge back percentages wiht rebills?

[MisterA]

Hey guys,
I have never been on the advertisers side so I wouldn't know! I am also not that involved with nutra rebills myself, I have been always sticking to other things to promote.

However, my question now is: What is the average charge back rates with the typical trial rebill offers on the adverts side (first rebill, second..)? (2$ trial, then 69$ monthly upon non cancellation, negative option..)

I have read in one of mont's legendary threads that he says above 2% is high. Is he counting the hard charge backs only or charge backs AND refunds?!

I always thought that around 30% of the trial members won't charge the first rebill back but maybe that number is way too low?!

 

[taxattorneylos]

The absolute amount of charge backs in the USA? Difficult to say, it is at least 1M chargebacks/ month considerably more, although as the info isn't community. I believe its safe to state the rate is increasing, not decreasing.

 

[GLGAccounting]

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[UnblockInternet]

The absolute amount of charge backs in the USA? Difficult to say, it is at least 1M chargebacks/ month considerably more, although as the info isn't community. I believe its safe to state the rate is increasing, not decreasing.

Hi MisterA,

I think he right.

 

[GLGAccounting]

A 1 percent chargeback rate (one chargeback per 100 successful orders) is the industry-standard maximum—but if that’s you, don’t breathe a sigh of relief just yet. That 1 percent is usually the absolute maximum allowed for direct merchant accounts, meaning that you’re dealing directly with the big boys like Visa or Mastercard. Wind up with a chargeback rate that’s higher than that and you could find yourself in trouble.

Credit card companies are looking for proportionate rates, which sit at or below 1 percent for a specific timeframe (usually one month). If your chargeback to transaction ratio is really high, credit card companies will take serious actions against you because you’re distinguished as a risky merchant.

Subsequently, merchants are commonly left with two questions:

If your chargeback rate is floating into the danger zone, what can you expect when dealing with various credit card companies?
Is this 1 percent chargeback rate a hard and fast rule that’s acceptable no matter what you’re selling?
The answers to both of those questions are slightly complicated. To illustrate, let’s look at a few examples so you can get a better feel for what’s “normal” as far as chargeback rates and associated fees.