> But the company had discovered that more than 9 percent of the money it made from children was being clawed back by the credit card companies.
> In comparison, the average chargeback rate for businesses is 0.5 percent, according to the Merchant Risk Council, a nonprofit that helps businesses manage risk.
> A chargeback rate of 1 percent is considered high, and credit card companies such as Visa and Mastercard will put businesses on probation programs for rates consistently that high.
> The Federal Trade Commission said in an unrelated fraud case in 2016 that a 2 percent chargeback rate was a “red flag” of a “deceptive” business.
Nine percent chargeback rate. That's just absolutely nuts.
> In comparison, the average chargeback rate for businesses is 0.5 percent, according to the Merchant Risk Council, a nonprofit that helps businesses manage risk.
> A chargeback rate of 1 percent is considered high, and credit card companies such as Visa and Mastercard will put businesses on probation programs for rates consistently that high.
> The Federal Trade Commission said in an unrelated fraud case in 2016 that a 2 percent chargeback rate was a “red flag” of a “deceptive” business.
Nine percent chargeback rate. That's just absolutely nuts.