Library · Chargebacks · How to run this
Refund one case to spare the ratio
Refund-to-deflect is a threshold tool. You credit the cardholder before the bank CB because the ticket plus fee plus ratio risk is worse than the refund.
Pair: Refund vs threshold damage on Chargebacks. Family defaults live in reason codes.
Cash on one case
Refund now: the ticket. Sample $84.
Lose the CB: ticket + CB fee. Sample fee $20, so $104.
When remaining primary CBs this window are more than three, that is the compare. Refund is cheaper in cash. You still might fight a clean fraud packet if the MID can take the loss.
When remaining CBs are three or fewer, the calculator adds a capacity tax of 2% of monthly sales, spread across the cases left. Sample monthly sales $720,000, so 2% is $14,400. One more primary CB is not “just a fee.” It is program risk. Refund unshipped orders and weak consumer codes the same day.
Name remaining cases from rate vs threshold. Media and CS should hear that count, not a blended brand percent.
What to refund vs fight
Refund: unshipped, not-as-described when the page lied, cancelled-recurring while MIT still bills, credit-not-processed. Fight: fraud with 3DS success and clean fulfillment, not-received with a delivery scan. Do not dump native traffic onto a MID with five CBs left.
When this fails
Refunding everything so you never learn which codes you can win. Fighting when five CBs remain and native is dumping. Ignoring the CB fee.
Related: refunds (the credit), MIDs (the ratio attaches here).
Procedure
- Name remaining primary CBs this window.
- Put ticket and fee.
- If headroom is thin, refund unshipped and weak consumer codes.
- Fight only when the packet is real and the MID can take a loss.
Failure modes
- Refunding everything so you never learn which codes you can win.
- Fighting when five CBs remain and native is dumping.
- Ignoring the CB fee.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Refund-to-deflect
- Credit the cardholder before representment because the ticket plus fee plus ratio risk is worse than the refund.
Work with us — We run this job on your accounts. Services
FAQ
- Should I refund every consumer code so the ratio stays pretty?
- No. Then you never learn which families you can win. Refund unshipped and weak consumer codes. Fight when the packet is real and the MID can take a loss.
- What counts as thin headroom?
- The calculator warns at three or fewer primary CBs left this window. It adds a 2% of monthly sales capacity tax to the lose path. Tighten that if this processor terminates faster.
- Does this replace the five-path price calculator?
- No. That prices alert, RDR, fight, and lose. This one asks whether one more primary CB is acceptable given remaining cases.