Chargeback Rate
Chargebacks divided by total transactions. Go above 0.9% and Shopify Payments will start warning you. Go above 1% and you could lose your payment processing entirely. That's why even a handful of disputes can be dangerous.
Example
500 orders this month, 3 chargebacks. That's 0.6% — you're okay for now, but you're not that far from the danger zone.
Why It Matters
Shopify Payments will warn you at 0.9% and can terminate your account at 1%. If that happens, you can't process payments — which means your store is effectively dead. A few bad months can push you over the edge before you even realize there's a pattern.
Pro Tip
Track your chargeback rate weekly, not monthly. If it ticks above 0.5%, immediately audit your fulfillment times, product descriptions, and customer communication to fix the root cause before it snowballs.
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