Calculating a chargeback win rate can be frustrating and confusing, especially with so many factors to consider—like whether to count unfought chargebacks, and how to treat pre-arbitration cases.
It’s easy for our clients to feel overwhelmed when the data payment processors provide doesn’t reflect the full picture. It’s completely valid to want a clearer, more accurate way to measure chargeback representment success.
That’s where focusing on the net recovery rate comes in. By focusing on the net recovery rate, a merchant’s true chargeback win rate, we hope to help simplify the process and give a more realistic view of a merchant’s chargeback response performance.
Understanding a merchant's true net win rate is vital for accurately assessing the effectiveness of their chargeback response strategies. By looking beyond surface-level win rates, merchants can gain a more complete picture of their potential to recover lost revenue and refine their approach, whether that means including additional evidence in chargeback responses, or using prevention tools like RDR or CDRN.
How to Calculate a True Chargeback Win Rate
- Representment Rate: Divide the number of fought chargebacks by the number of all chargebacks
- Gross Win Rate: Divide the number of won chargebacks by the total number of fought chargebacks
- Gross Pre-Arbitration Rate: Divide the number of chargebacks lost in pre-arbitration by the number of all fought chargebacks
- True Net Recovery Rate: Remove pre-arbitration chargebacks from the equation to find the true rate of chargeback recovery
Because most published "win rates" are calculated differently, the win rate our competitors present is often noticeably higher than reality.
While many merchants focus solely on gross win rates, understanding the true net recovery rate offers a deeper and more accurate measure of chargeback success. This true chargeback win rate allows merchants to develop a dialed-in dispute management strategy but most importantly, it gives them a clear picture of the return on their investment in MidMetrics™.
Uncover a True Chargeback Win Rate with MidMetrics™
Don’t let incomplete data hold you back. MidMetrics™ provides the tools and insights you need to accurately measure your net recovery rate and maximize your ROI.
