When you have too many chargebacks on your record, financial institutions may begin to see the problem as originating on your end. To help them measure this, they assess your chargeback ratio. This rate consists of the number of chargebacks you've received in a month divided by your total transactions in a month.Payment processors have different thresholds, but generally, if your chargeback ratio climbs above 1%, you could end up facing fines, restrictions, or even the termination of your merchant account.