I’ve been hearing about “dispute ratio” but I honestly don’t get how it’s calculated or why it matters so much. Can someone break down what exactly it means?
Answer by: abdullah-al-naim
1 week ago
The dispute rate represents the percentage of disputes on successful payments by charge date.
The two calculations are best understood with an example. Let’s say you processed 1,000 payments in a given week. In that same week, you also received 10 disputes.
Only 3 of those disputes were from the 1,000 payments processed that week. The other 7 disputes were from payments that were processed at an earlier date. (Because disputes take a while to come in, this delay is very common.)
The dispute activity for this week would be 1% (10 disputes on 1,000 payments). The dispute rate for this week would be 0.3% (3 disputes on 1,000 payments).
Learn more about PayPal limitation:
https://businessglobalizer.com/blog/paypal-limits-simplified-how-you-can-get-around-the-problem/
