Chargeback Reason Codes - Congrify Knowledge Hub

Payment KPIs

Key performance indicators to track and optimize your payment processing efficiency.

Payment KPIs - Congrify Knowledge Hub

Authorization Requests

Measures the volume or count of requests sent to an issuing bank to verify and approve a transaction, ensuring the cardholder has sufficient funds, the card is valid and the transaction is legitimate.

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Sales Volume

The Sales Volume KPI measures the total number of successfully completed orders and captured payments during a specific reporting period.

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Successful Authorizations

The count or volume of all payment transactions that were successfully authorized by the issuer in a payment service provider request.

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Successful Authorization Rate

The rate of all payment transactions that were successfully authorized by the issuer in a payment service provider request.

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Transactions Volume

The total volume of transactions processed by the payment processor, independently of the transaction’s outcome.

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Transaction Requests

The Transaction Request KPI measures the total number of payment initiation requests sent to customers, via all available channels and payment methods.

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Successful Sales

The Successful Sales KPI measures the volume and percentage of sales that are successfully completed and finalized.

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Total Declines

Total Declines refers to the overall number of payment transactions that were rejected or failed by the payment processor or issuing bank.

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Issuer Declines

Issuer declines occur when a cardholder’s bank (the issuer) refuses to authorize a payment transaction, typically due to issues like insufficient funds, fraud suspicion, or other card related restrictions.

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Gateway Declines

Gateway declines (or rejections) occur when a payment gateway blocks a transaction before it’s sent to the bank for authorization, usually due to fraud rules, validation errors, or account settings.

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Risk Declines

Risk declines occur when a payment is blocked due to suspected fraud or security concerns, often triggered by risk engines using behavioral, transactional, or device-based signals.

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Soft Declines

Soft declines happen when a transaction is rejected by the issuing bank, temporarily insufficient funds or the need for further customer action, like completing 3D Secure.

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Hard Declines

The Hard Declines measure the percentage of transaction authorization requests permanently rejected by the issuing bank due to issues like expired cards, fraud, or closed accounts, requiring alternative payment methods or customer intervention to resolve.

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3D Secure Failures

3D Secure failures occur when the customer is unable to successfully complete the 3D Secure authentication process during a transaction, leading to the payment being declined or abandoned.

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3D Secure Abandonments

3D Secure abandonments occur when customers exit the checkout process during the 3D Secure authentication step, typically due to confusion, poor user experience, or delays in loading.

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3D Secure Challenge Rate

Challenge rate refers to the percentage of 3D Secure (3DS) authentications that require strong customer authentication by the issuer.

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3D Secure Exemptions Rate

3D Secure exemption rates refer to how often transactions are approved without requiring customer authentication, thanks to regulatory exemptions like low-value or low-risk criteria under PSD2.

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Refund Rate

Refund rate measures the percentage of total number or volume of refunded transactions vs successful sales.

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Average Order Value

Average sales, or Average Order Value (AOV), measures the average amount a customer spends per transaction, helping businesses understand customer purchasing behavior and revenue potential.

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Net Sales

Net sales represent a company’s total revenue from sales after subtracting returns, refunds, costs, providing a clear view of actual earned income.

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Chargeback Rate

The Chargeback Rate measures the percentage of transactions that result in chargebacks, calculated by dividing the number of 1st chargebacks by the total number of successful transactions processed in a given period.

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1st Chargeback Rate

The 1st Chargeback Rate measures the percentage of initial chargeback disputes filed against successful Sales.

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2nd Chargeback Rate

The 2nd Chargeback Rate measures the percentage of transactions that result in a second chargeback against successful Sales.

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Arbitration Rate

The Arbitration Rate measures the percentage of Chargebacks that result in an arbitration case.

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Won Chargebacks

The Won Chargebacks indicate the percentage of chargeback disputes a merchant successfully overturns through representment, determined by dividing the number of successful chargebacks by the total chargebacks received.

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Lost Chargebacks

The Lost Chargebacks KPI measures the percentage of chargeback disputes that a merchant fails to reverse through representment, calculated by dividing the number of lost chargebacks by the total number of chargebacks received, indicating the proportion of disputes resulting in unrecovered revenue.

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Total Fees

Total payment fees encompass all charges incurred when processing payments, including gateway fees, processing fees, interchange fees, acquiring fees and other related expenses.

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Acquirer Fees

The Acquirer Fees measures the total cost charged by an acquiring bank to a merchant for processing card-based transactions, typically calculated as a percentage of transaction volume plus fixed fees, reflecting the expense of payment acceptance.

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Scheme Fees

The Scheme Fees measures the total costs charged by card schemes (e.g., Visa, Mastercard) to issuers and acquirers for using their payment network, comprising fixed and variable fees based on transaction volume, card type, and services utilized.

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Gateway Fees

The Gateway Fees measure the total costs a merchant incurs for using a payment gateway to process card transactions, including setup, transaction, monthly, chargeback, and other miscellaneous fees, reflecting the expense of secure payment processing.

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Chargeback Fees

The Chargeback Fees measures the total costs imposed on a merchant by payment processors or acquirers for handling chargeback disputes, typically ranging from $15 to $100 per chargeback, reflecting the administrative expenses of dispute resolution.

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Processing Fees

The Processing Fees KPI measures the total costs charged by payment processors to merchants for facilitating payment transactions, encompassing fees for software, equipment, and value-added services like fraud prevention and customer support, typically calculated as a percentage of transaction volume plus fixed fees.

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Interchange Fees

The Interchange Fees measures the total costs paid by a merchant’s acquirer to the card issuer for processing card transactions, set by card schemes like Visa and Mastercard, typically ranging from 0.3-2% of transaction value, varying by region, card type, and transaction risk.

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Blended Fees

The Blended Fees measures the total flat fee charged to merchants by payment service providers (PSPs) for processing transactions, combining interchange, card scheme, and processing fees into a single rate, simplifying cost tracking for small to medium enterprises.

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Conversion Fees

Conversion Fees measure the total charges imposed by financial institutions or payment providers for converting one currency to another during transactions, typically a percentage (e.g., 1-3%) or flat fee, reflecting the cost of facilitating cross-currency payments.

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Payout Fees

These are charges imposed by payment platforms or processors when transferring funds from the platform to the business's bank account.

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