Fraud, Seeing the Problem Before the Ratio Moves

Chargeback ratios define liability and exposure under the scheme rules, but acquirers are now driven by fraud counts when deciding which merchants face scrutiny. A merchant may appear compliant on ratios yet still raise red flags if fraud attempts rise. Ratios remain a benchmark, but they are only a backward view.

The real test of resilience lies in the signals that appear earlier. These are the movements that shape the ratios before they show up on a report. Ratios tell acquirers what went wrong after the fact, while fraud counts give them a real-time view, and they increasingly set the pace for intervention and escalation.

• Refund spikes that suggest stress in fulfilment or customer processes

• Transaction surges that outpace approvals and look like abnormal velocity

• Descriptor or product changes that confuse cardholders and drive disputes

These signals don’t automatically mean a breach, but they highlight where risk is forming and where early intervention can prevent wider disruption.

Ratios tell you what happened yesterday. Early signals show you what is happening now. Portfolios that act on them stay fitter, while those that wait for ratios to confirm the outcome are already on the defensive.

👉 In today’s environment, ratios tell the story after the fact. Fraud counts and early signals show what’s happening now.

𝐀𝐜𝐪𝐮𝐢𝐫𝐞𝐫𝐬 𝐚𝐫𝐞 𝐫𝐞𝐚𝐝𝐢𝐧𝐠 𝐬𝐢𝐠𝐧𝐚𝐥𝐬. 𝐘𝐨𝐮𝐫 𝐬𝐞𝐭𝐮𝐩 𝐢𝐬 𝐨𝐧𝐞 𝐨𝐟 𝐭𝐡𝐞𝐦.

📧For a free compliance review and rate analysis, email info@streampayments.com