Chargeback Analysis

Objective

The Chargeback Analysis dashboard provides analysis of the impact of chargebacks on the business. When done properly, merchants are able to analyze the data contained in the chargeback report to detect patterns and evaluate risk.

The dashboard presents key metrics such as overall chargeback rate, chargeback data by subscription cycle,  chargeback rates by card type (i.e. Visa, MasterCard, Discover and AMEX) and affiliates with a high number of chargebacks. Additionally, Refund Rate is captured in this report and is used in line with chargeback rate to identify correlations between providing a full product refund and chargeback ratio.

This report provides an overview of chargebacks by trend over time, type of chargeback, affiliate sources generating orders with chargebacks and deep analysis of chargebacks by cycle.

Potential Actions

  1. Make operational or technical adjustments to reduce the amount of chargebacks.

  • Data presented in this dashboard is based on "Chargeback Date" unless otherwise noted. Chargeback Date is the date that the order was charged back without an association between the Re-bill and Recurring transactions (Cycles 1…X) and the Initial transaction (Cycle 0) that initiated the order.
  • All test orders marked within the platform are automatically removed from the Analytics data.
  • Please reference the Lime Light Order Cycle Nomenclature visual below to understand the way that Lime Light references the phases of a each order type. 

Chart / Table

Description

Formula

Avg Days to MCB (Initial) 

The average number of days for an Initial Order to charge back.

Average(Order Date - Chargeback Date) 

Avg Days to MCB (Rebill)

The average number of days for a Rebill Order to charge back.

 See formula above.
Avg Days to MCB (Recurring)

The average number of days for a Recurring Order to charge back.

 See formula above.

Merchant Chargebacks (MCBs)

The Merchant Chargebacks chart helps to understand the MCB trend over time. Use this information to determine if it’s necessary to make adjustments to operational and/or marketing efforts to attempt to reduce MCBs.

Data Based On: Transaction Date - The date that the order was placed without an association between the Re-bill and Recurring transactions (Cycles 1…X) and the Initial transaction (Cycle 0) that initiated the order.

(Chargeback Revenue ÷ Approved Revenue)

Top 5 Affiliates with MCBs

The Top 5 Affiliates with MCBs bar chart leaves one with an understanding of the top 5 order sources generating chargebacks. Change the date range to a month to determine problematic traffic sources and determine if those sources need to be addressed.

Data Based On: Transaction Date - See description above.

Count(Chargeback by Affiliate and card type)

 

Top 5 Gateways by Merchant Chargebacks (MCBs)

Analyzes the top 5 gateways by chargeback count This bar chart measures against the 100 chargeback KPI and helps to identify gateways that are reaching the 100 chargeback amount.

Data Based On: Transaction Date - See description above.

Count(Chargeback by gateway in the current month to date)

Merchant Chargeback (MCB) Analysis - By Affiliate

This table provides the data elements and metrics necessary to gain a deeper understanding of MCBs -- Orders, Gross Revenue, MCB Count, MCB Percentage and MCB Lost Revenue. Click on the column headers to sort the data high to low for even greater understanding of chargebacks by affiliate.

Data Based On: Transaction Date - See description above.

 

Orders

This metric shows you the amount of approved orders ran on the respective gateway.

(Approved orders by gateway)

Gross Revenue

Shows you the amount of revenue processed on the respective gateway.

Sum(Order Total Revenue)

MCB #

This metric will show you the manufacture chargeback count on the respective gateway. This can be used to analyze and sort your gateways by the chargeback count in the selected date range.

Count(Chargeback by gateway)

MCB %

This metric will show you the percentage of orders on the respective gateway that have been marked as chargeback

(Chargeback count ÷ Approved Orders)

MCB Lost Rev

MCB Lost Revenue is Gross Revenue lost within the designated time period as a result of chargebacks only.

Note: The benefits of representment is not reflected in the MCB Lost Revenue calculation.

Sum(Gross Revenue of Orders Charged back)

Merchant Chargeback (MCB) Analysis

This table provides the data elements and metrics necessary to gain a deeper understanding of MCBs broken down by Cycle -- Order, Gross Revenue, MCB Count, MCB Percentage, MCB Revenue Percentage.

Data Based On: Transaction Date - See description above.

 

Orders

 See description above. (Approved orders by gateway) 
Gross Revenue  See description above. Sum(Order Total Revenue) 
MCB #  See description above. Count(Chargeback by gateway) 

MCB %

See description above.  (Chargeback count ÷ Approved Orders) 

MCB Lost Rev

 See description above. Sum(Total Revenue of Orders Charged back) 

Refunded by Cycle

This table provides the data elements and metrics necessary to gain a deeper understanding of Refunds broken down by Cycle -- Refund Count, Refunded Amount, Refunded Revenue Percentage, and MCB Lost Revenue.

Data Based On: Transaction Date - See description above. 

 

Refund #

Refund count. Count(Refunds by Cycle)

Refunded

Gross Revenue lost as a result of refunds. Sum(Total Revenue of Orders Refunded)

Refunded Rev %

Percentage of Gross Revenue lost due to refunds. (Amount Refunded ÷ Gross Revenue)

Refunded w/o MCB

Gross Revenue lost with the refunds from chargebacks not included. Sum(Refunds from sources other than MCBs)

MCB Lost Rev

See description above. See formula above.

Merchant Chargeback (MCB) Analysis - Visa

The MCB Analysis by Visa table provides the data elements and metrics necessary to gain a deeper understanding of MCBs specific to the Visa card brand -- Orders, Gross Revenue, MCB Percentage and MCB Revenue Percentage.

Data Based On: Transaction Date - See description above.

 
Orders   See description above.  See formula above.
Gross Revenue   See description above. See formula above. 
MCB %   See description above. See formula above. 
MCB Rev %   See description above.  See formula above.

Merchant Chargeback Analysis (MCB) - MASTERCARD

The MCB Analysis by Mastercard table provides the data elements and metrics necessary to gain a deeper understanding of MCBs specific to the Mastercard brand -- Orders, Gross Revenue, MCB Percentage and MCB Revenue Percentage.

Data Based On: Transaction Date - See description above.

 

Affiliate Merchant Chargeback (MCB) Summary - <Cycle>

This table provides the MCB Quantity, MCB Percent, MCB Lost Revenue, and Average Days to MCB -- all broken out by Cycle and Affiliate.

Data Based On: Transaction Date - See description above.

 

MCB #

See description above.

See formula above.

MCB %

See description above. See formula above.

MCB Lost Rev

See description above. See formula above.

Avg Days to MCB

The average days it takes to receive a Chargeback for each affiliate. See formula above.

 

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