Having a high chargeback-to-transaction ratio means your business becomes a “high-risk” entity. You will move into a chargeback monitoring program, which attracts excessive penalties ($5000-$25,000). Mastercard’s Excessive Chargeback Program mandates every acquiring bank to provide monthly reports stipulating the activities of any listed merchant. And they charge from $50 to $300 per bank report. Not filling the report attracts penalties of as much as $1,000/report. Although they levy these fees to your acquiring bank, the banks automatically pass the fees on to you with considerable service fees. When you do the math, the penalties and fees for breaching the acceptable chargeback rate are humongous.