Won Chargebacks KPI

Won Chargebacks

The Won Chargebacks KPI measures how successful a merchant is at overturning chargeback disputes by tracking the proportion of disputes won through the representment process. It is calculated as follows: (Won Chargebacks ÷ Total Chargebacks Received) × 100, usually evaluated over a set timeframe, such as quarterly. For instance, if a merchant contests 80 chargebacks and wins 24, their won chargebacks rate is 30%.

This metric is vital because it shows a merchant’s ability to reclaim revenue lost to disputes, especially those involving friendly fraud, which accounts for 70-79% of all chargebacks. A high win rate suggests an effective representment approach, backed by strong evidence such as order confirmations or customer communication, helping combat fraudulent claims and protect profits. However, disputing chargebacks is costly—averaging $10−$50 per case—and may result in lost goods, so merchants must prioritize which disputes to challenge.

For issuers, a high win rate may indicate a lower-risk merchant, while customers benefit from businesses operating sustainably. Tracking this KPI helps merchants detect fraud patterns, test new dispute strategies, and allocate resources efficiently, as chargeback resolutions can take up to four months.