How To Choose Chargeback Limit in 2022 ?

It's no secret that credit card chargebacks are on the rise. In fact, they've been increasing for years. And, there's no sign of them slowing down anytime soon.
 
This is bad news for businesses of all sizes. Chargebacks can be costly and time-consuming to deal with. They can also damage your reputation and hurt your bottom line.
 
To make matters worse, the pandemic has only made things worse. With so many people out of work and struggling to make ends meet, chargebacks are likely to increase even further in the coming year.
 
So, what can you do to protect yourself from chargebacks? One option is to set a chargeback limit.
 
A chargeback limit is the maximum amount of money that you're willing to lose to chargebacks in a given period of time. It's typically expressed as a percentage of your total sales. For example, if your chargeback limit is 1%, that means you're willing to lose up to $1,000 in sales to chargebacks over the course of a year.
 
There are a few things to consider when setting a chargeback limit. First, you need to think about your business's overall risk tolerance. If you're a small business with limited resources, you may want to set a lower limit than a large business that can absorb more losses.
 
Second, you need to consider your industry. Some industries are more prone to chargebacks than others. For example, businesses that sell digital goods or services are often hit hard by chargebacks because it's easy for customers to claim they never received the product or service.
 
Finally, you need to think about your payment processor. Some processors are better at preventing and resolving chargebacks than others. If you're using a processor that has a high chargeback rate, you may want to set a higher limit to account for that.
 
No matter what your chargeback limit in 2022, it's important to have one in place. By setting a limit, you can help protect your business from the financial and reputational damage that chargebacks can cause.