Payments · Guide9 min readUpdated November 3, 2026

Shopify Payments Chargeback Thresholds and What Happens Above Them

The chargeback levels that matter on Shopify Payments: the 1.5% dispute program trigger, the rate Shopify watches, Visa and Mastercard limits.

Nick Bonnassies, CMO at Tagada · checked against 11 sources

Article summary

TL;DR

Shopify publishes one number of its own: a store whose 90-day chargeback rate, including auto-resolved disputes, reaches 1.5% can be enrolled automatically in a dispute program with a 10% reserve. Leaving it takes 30 days below 1.00%. Shopify says it can act before Visa's and Mastercard's 1.5% thresholds.

Merchants "with an NDRP-inclusive chargeback rate of 1.5% or higher over the last 90 days can be automatically enrolled" in a network dispute resolution program.
Enrollment adds a 10% reserve and a $15 fee per dispute in the US, and disputes are refunded to customers without a contest.
To exit, the rate "must drop below 1.00% and stay below 1.00% for 30 consecutive days".
Winning doesn't help the ratio: the rate "is based on the number of disputes filed, not the outcomes".
Shopify holds stores to "a higher standard" than the networks, whose levels start at 1.5% for Visa VAMP and Mastercard ECM.

Want to go further? Ask

On this page

This page covers Shopify Payments only: its numbers, its admin, its terms. For how chargebacks work at any processor, see chargebacks for merchants. The rest of our Shopify guides are in the Shopify hub.

Shopify's own numbers

There is a Shopify threshold, and it sits in the dispute program page, not the main chargeback guide. Here is what Shopify publishes.

Level	What it means	What Shopify can do
1.5% or more over 90 days	Automatic enrollment in a network dispute resolution program (NDRP), above a minimum order volume1	Auto-refund disputes, $15 fee each (US), 10% reserve on payouts1
Above 1% after the reserve's first expiry	The rate didn't come down	"further reserves or payout holds"1
Below 1.00% for 30 consecutive days	Exit condition, while you keep processing on Shopify Payments1	Leave the program; the 10% reserve "can be lifted early"1
Below network thresholds	Other risk signals, such as listings, subscriptions, reviews, fulfillment	Your account "might be acted on before you reach network-level limits"4

Fig. 1Where a 1.2% chargeback rate sits on Shopify

1.2%90-day NDRP-inclusive chargeback rate

above the exit line, below automatic enrollment

Illustrative example. Levels from Shopify Help Center, Network dispute resolution programs, read November 3, 2026.

Stores below a minimum order volume are excluded "to help protect newer and smaller businesses from being unfairly penalized"1.

Separately, a regular review can enroll an account Shopify judges at elevated risk, based on factors such as "your customer dispute history and general business practices"1. The terms let Shopify enroll you when it determines, "in our sole discretion", that dispute risk is elevated6.

The rate Shopify watches

Your admin shows two rates. Only one sets the consequences2.

Rate	What it counts	What it's used for
Standard chargeback rate	Chargebacks, excluding disputes auto-resolved through a program such as Visa RDR	Your view of formal chargebacks2
NDRP-inclusive chargeback rate	Standard chargebacks plus auto-resolved disputes, and won disputes	"account warning banners, reserve thresholds, account standing, and eligibility for features such as the Shop app"2

The formula is monthly: chargebacks received in a month over "chargeback-eligible transactions" processed that month2. The report Shopify points to is rolling: in Analytics > Reports, search Rolling 90-day chargeback rate (NDRP); "Each point covers that date and the previous 89 days"1 3. Your current status also shows in Settings > Payments, under chargeback monitoring3.

Example

A store with 4,000 eligible orders over 90 days and 60 disputes, of which 20 won and 10 auto-resolved, has a 90-day NDRP-inclusive rate of 1.5%. Winning those 20 doesn't lower it. Illustrative figures.

The network dispute resolution program

It trades your right to contest for speed. Once enrolled, new disputes are "resolved automatically, with the full order amount reimbursed to the customer", before they become formal chargebacks1.

Fig. 2What changes once you're enrolled

No contest
No evidence window. The outcome "is final and can't be appealed or reversed through Shopify."
A fee per dispute
$15 in the US, £10 in the UK, shown on each affected order.
A 10% reserve
Applied to payouts, with terms sent by email. It can lift early when you exit.

every new dispute is settled for you

Shopify Help Center, Network dispute resolution programs, and Shopify Payments Terms of Service, read November 3, 2026.

The terms say it plainly: while enrolled, Shopify "will determine how disputes are handled on your behalf, and you will not be able to contest them"6. Auto-resolved disputes show with the status Resolved; filter orders by Chargeback and inquiry status to list them1.

Watch out

Termination doesn't end the program for old orders. If Shopify Payments is terminated, disputes on earlier orders can still be resolved through the NDRP, with a fee each1. And a terminated account "might not be eligible to exit"1.

The reserve side of enrollment: Shopify Payments reserve.

The card network thresholds behind it

The fines come from Visa and Mastercard, through Shopify's banking partners. Shopify's help center lists them5.

Program	What it counts	Threshold
Visa VAMP, "Excessive"	Disputes, inquiries included, plus fraud reports (TC40), over captured payments	1.5% and 1,500 cases, outside CEMEA5; 2.2% before April 1, 20268; 2.2%, 150 cases and $75,000 in CEMEA5
Visa VAMP, "Non-compliant"	Same	0.5% and 5 cases5
Visa VAMP enumeration	Card testing attempts over authorizations	300,000 attempts and 20%; no fines5
Visa Secure Excessive Fraud (US)	Fraud on 3DS-authenticated Visa payments	$75,000 and 0.9%; you lose the liability shift5
Mastercard ECM	Chargebacks this month over captured payments of the previous month	100 to 299 chargebacks and 1.5% to 2.99%5
Mastercard HECM	Same	300 or more and 3%5
Mastercard EFM	Fraud chargebacks with low 3DS use	1,000+ payments, $50,000+ of fraud, 0.50%+, 3DS on 10% or less (non-regulated countries)5

The calendar explains why notices feel late. A dispute counts in the month the network receives it, and a program usually flags you the month after5. Shopify adds that "an extended period of enrollment in VAMP" can restrict your use of Shopify Payments5. Formulas for every network: chargeback rate.

What happens above the threshold

It escalates, and Shopify can act at any step. Here is the order Shopify's pages describe.

A notification about account health when the rate becomes high3.
Account actions: "a reserve on Shopify Payments payouts, or enrollment in a network dispute resolution program"3.
Slower or held payouts: a custom schedule of 5 to 20 business days, payout holds, document requests4.
Network programs and fines, if your counts and ratios reach Visa's or Mastercard's levels5.
Suspension or closure: payouts suspended, charges deactivated, the Shopify Payments account closed4.
A listing: MATCH code 4 covers Mastercard chargebacks above 1% of sales in a month and $5,000 or more; won disputes still count, and listings stay five years5.

Sources: Shopify Help Center (Network dispute resolution programs, Chargeback monitoring, Acceptable business practices, Monitoring programs), read November 3, 2026.

Mastercard's ECM fines grow with each month above the line5:

Fig. 3Mastercard ECM fine per month, by months above the threshold

Months 2 to 31000$
Months 4 to 65000$
Months 7 to 1125000$
Months 12 to 1850000$
Month 19 and later100000$

Source: Shopify Help Center, read November 3, 2026

month one is free, month 19 is not

Shopify Help Center, Fraud and dispute monitoring programs, read November 3, 2026. From month 4, plus $5 per chargeback above 300 in a month.

You leave a Mastercard program after 3 consecutive months below its threshold5. Visa's VMSS list adds code 22: 1,000 disputes and 1.8% of sales in a month5. Because of banking partner restrictions, Shopify "generally can't process for businesses listed on MATCH"5. The closure side: Shopify Payments closed or deactivated your account.

Bringing the rate down on Shopify

Start from your dispute reasons, then use what Shopify already gives you. Shopify groups disputes into seven types, each with its own evidence2.

Fig. 4From the pattern to the fix

"Subscription canceled" disputesCustomers forget or can't cancelClear renewal terms, reminders, an easy cancel path
"Product not received" disputesDelivery not proven or lateTracking on every order, signature on high-value ones
Orders flagged high riskFraud analysis sees stolen-card signalsReview and cancel before you ship
Many small orders, rising declinesCard testingTreat it as an attack, not as sales

each fix maps to one kind of dispute

Based on Shopify Help Center, Responding to chargebacks, Chargebacks and inquiries, and Monitoring programs, read November 3, 2026.

A few Shopify specifics are worth knowing:

Evidence is added for you. Order, customer, address, IP, fulfillment, tracking and refund data go into your response automatically, and it's submitted on the due date "even if you don't add any evidence yourself"2. Add what only you have: messages, policies, delivery photos.
Response time is short. Usually 7 to 21 days to respond; the card company's review "can take up to 75 days"2.
Refunds don't erase fraud reports. A refunded payment can still get an early fraud warning, unless it was a reversal within 2 hours of capture5.
High-risk orders flagged by Shopify's fraud analysis can be reviewed and cancelled before they turn into disputes7.
Shopify Protect reimburses eligible fraud chargebacks on some Shop Pay orders2.

Watch out

Splitting sales across stores, descriptors or processors to stay under a threshold is evasion. Visa can fine the acquirer up to $25,000 per merchant per month for altering merchant data to avoid its programs9. Bring the disputes down instead.

The full method by reason code: how to prevent chargebacks. Alerts that stop disputes before they count: chargeback alerts.

What each chargeback costs

In the US, Shopify Payments charges $15 per chargeback, withdrawn with the disputed amount and returned if you win2. An inquiry takes no money during the investigation2. The bank's decision is final: "there's no appeal process"2. Fee by fee across processors: chargeback fees.

If Shopify Payments declines you later, its reapplication guide asks for 6 to 12 months on another gateway with a chargeback rate below 1%10.

By industry

Industry	What changes	Guide
Supplements	Forgotten subscriptions, unclear trials, "it didn't work" claims	Chargebacks for supplement brands
Skincare	Forgotten refills, results that didn't match the ad	Chargebacks for skincare brands
Fitness	Programs and memberships customers stop using	Chargebacks for fitness brands
Info products	"Not as described" on courses and coaching	Chargebacks for info product businesses
Online pharmacy	Refills and delivery of regulated products	Chargebacks for online pharmacies
Telehealth	Memberships and recurring visits	Chargebacks for telehealth companies

How Tagada helps

Fewer disputes, and no single point of failure

Fraud stopped before it turns into a dispute: "Native 3DS2, device intelligence, and rules engine: approve real customers, block the rest."11
Works with your Shopify store: "Already on Shopify, WooCommerce, ClickFunnels or BigCommerce? Drop TagadaPay in."11
A vault you own: "Your PCI-tokenized cards, your customer profiles, your subscription data, all portable." Switch processors without re-onboarding customers.11
Onboarding: "One KYC. One signed package." TagadaPay says most merchants are live in under 24 hours.11
Support: "24/7 human support on Slack Connect."11

Tagada follows Visa and Mastercard rules and the laws that apply to payments. Apply on TagadaPay; CRM plans are on the pricing page.

Apply for processing

Fewer disputes, and no single point of failure

Updated on November 3, 2026

Nick Bonnassies

CMO at Tagada

CMO at Tagada. Before Tagada, Nick built direct-to-consumer brands that generated over $115M in sales, raised over $25M in crowdfunding and sold two of them. He also works as a fractional CMO on marketing operations and AI systems.

Frequently asked questions

What is Shopify's chargeback threshold?

Shopify's published trigger is 1.5%: a store whose 90-day chargeback rate, including auto-resolved disputes, reaches it can be enrolled automatically in a network dispute resolution program, with a 10% reserve. Shopify also says it can act before card network limits, which start at 1.5% for Visa VAMP and Mastercard ECM.

Is 1% the Shopify chargeback limit?

Not as a hard limit, but 1% matters. Leaving Shopify's dispute program requires staying below 1.00% for 30 consecutive days. If your rate is still above 1% after the reserve's first expiry, Shopify may add reserves or payout holds. Its reapplication guide also asks for a rate below 1%.

Do won chargebacks count toward my Shopify chargeback rate?

Yes. Shopify bases the rate on disputes filed, not outcomes, and its NDRP-inclusive rate also counts disputes resolved automatically through a program such as Visa RDR. That NDRP-inclusive rate is the one that drives warning banners, reserve thresholds, account standing and Shop app eligibility.

How do I get out of Shopify's network dispute resolution program?

Bring your 90-day NDRP-inclusive chargeback rate below 1.00% and keep it there for 30 consecutive days while you keep processing on Shopify Payments. Track it in the Rolling 90-day chargeback rate (NDRP) report. The 10% reserve can then lift early. A suspended or terminated account might not be able to exit.

Can Shopify close my account for chargebacks?

Yes. Chargeback rates and trends are part of Shopify's risk review, and severe cases can lead to suspended payouts, deactivated charges or a closed Shopify Payments account. If Mastercard's MATCH criteria were met, the processor must list the business, and Shopify generally can't process for listed businesses.