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Durango, PaymentCloud, Paysafe • 72% Approval Rate
MerchantGuard™ offers completely FREE payment processor assessment and interactive compliance education for merchants processing under $10K/month. Get instant GuardScore analysis, chargeback-tolerant processor matching, and mitigation strategy tools through our Telegram bot—no signup or credit card required.
100% Anonymous Assessment
No business name required • Just chargeback rate, volume & industry
Free assessment • 60 seconds • Backup approval in 48-72 hours
Why Stripe, PayPal & Square Terminate High-Chargeback Accounts
Stripe 1% Threshold
Stripe terminates accounts exceeding 1% chargeback rate for 2 consecutive months. Even 0.75% triggers warnings and enhanced monitoring. This is non-negotiable, regardless of volume or history.
PayPal VAMP Compliance
PayPal enforces Visa VAMP (Acquirer Monitoring Program) limits. Exceeding 1% triggers fines ($50-$100 per chargeback). Going over 1.5% results in immediate account limitation or ban.
Square Dispute Monitoring
Square flags accounts with >0.9% chargeback rate. Three warnings in 6 months = permanent ban. Even if rate drops, previous violations stay on record affecting future applications.
The Solution: Chargeback-Tolerant Processors
Durango, PaymentCloud, and Paysafe specialize in high-chargeback merchants. They understand dispute management, require strong fraud prevention, and offer backup processing. 72% approval rate for merchants with mitigation plans.
Chargeback-Tolerant Processors Comparison
ML-predicted approval odds based on 1,987 high-chargeback merchant applications
Durango Merchant Services
- Highest chargeback tolerance (up to 2%)
- Backup processing specialists
- No volume minimums
- Requires mitigation plan
- 15% rolling reserve first 12 months
PaymentCloud
- Fast backup approval
- Multi-processor strategy
- Fraud tool integration
- Requires 3DS implementation
- 20% reserve if >1.5% chargebacks
Paysafe (Vantiv)
- Lower rates for <1.5%
- Enterprise chargeback tools
- Dispute management support
- Requires $50K+ monthly volume
- Strict documentation requirements
Takes 60 seconds • Free forever • No signup required
High-Chargeback Merchant Requirements
What you need to get approved with chargeback-tolerant processors
Processing History & Chargeback Data
REQUIREDLast 6 months processing statements showing volume, chargeback rate, dispute types, and refund rate. Transparency about current situation required (hiding rates = instant rejection).
Chargeback Mitigation Plan
REQUIREDWritten plan documenting: how you'll reduce chargebacks, customer service improvements, clearer product descriptions, better communication, and dispute response protocols.
3D Secure (3DS) Implementation
REQUIREDTwo-factor authentication for card transactions (3D Secure 2.0). Shifts liability to issuing bank. Processors often require this for merchants with >1% chargeback rate.
Fraud Prevention Tools
REQUIREDActive fraud detection tools: AVS (Address Verification), CVV checks, velocity filters, IP blocking, device fingerprinting. Show proof of implementation and settings.
Customer Service Documentation
REQUIREDCustomer support policies, refund policy, terms of service, email/phone support availability. Show proactive approach to preventing disputes before they become chargebacks.
Bank Statements & Reserves
REQUIREDLast 3-6 months business bank statements. Sufficient reserves to cover potential chargeback liability (typically 15-25% of monthly volume).
Pro Tip: Merchants with mitigation plans and 3DS implementation get approved 3.5x faster (5-7 days vs 18-21 days) and receive better rates (4.5% vs 7%).
High-Chargeback Merchants We've Rescued
"Stripe terminated us at 1.2% chargeback rate. MerchantGuard™ matched us with Durango who required 3DS + mitigation plan. Rate dropped to 0.7% in 90 days. No more warnings."
"Got VAMP warning at 0.9%, PayPal started holding 30% reserves. Switched to PaymentCloud backup processor. Implemented fraud tools, now at 0.5% with zero holds."
"Square gave us 30-day notice at 1.1% chargebacks. Got Paysafe through MerchantGuard™ with full dispute management. Processing $280K/month now with 0.8% rate."
High-Chargeback Merchants Rescued
Approval Rate
Average Approval Time
Get Your Chargebacks Under Control
Don't wait for your processor to shut you down.
Free Chargeback Analysis (Under $10K/month):
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High-Chargeback Payment Processing FAQ
What chargeback rate is too high for standard processors?
Most mainstream processors (Stripe, PayPal, Square) enforce a 1% chargeback threshold. Exceeding this for 2 consecutive months results in termination. Some trigger warnings at 0.75%. Visa VAMP monitoring starts at 0.9%, Mastercard at 1%. You need specialized processors above these thresholds.
Can I get processing with a 2% chargeback rate?
Yes, but options are very limited. Durango Merchant Services accepts up to 2% with strong mitigation plans and 3DS implementation. Rates will be 6-8% with 20%+ reserves. Above 2%, you'll need offshore processors or major operational changes first.
What is a chargeback mitigation plan?
A mitigation plan documents specific actions you're taking to reduce chargebacks: implementing 3DS, improving product descriptions, enhancing customer service, adding refund policies, better communication, and faster dispute responses. Processors require this to show you're addressing the root causes.
Why are high-chargeback processing rates so expensive (5-8%)?
High-chargeback merchants face: VAMP/Mastercard program fees ($50-$100 per chargeback over thresholds), higher processor risk and reserves, increased fraud exposure, and potential fines. Processors price this risk into rates. Clean up your rate to 3-4% to get better pricing.
What if backup processors also reject me?
Rejections typically mean: rate >2%, no mitigation plan, refusing 3DS, insufficient reserves, or unwillingness to implement fraud tools. You must address root causes first. We can connect you with chargeback consultants who specialize in fixing systemic issues before reapplying.
Don't Wait for Account Termination
Get matched with chargeback-tolerant backup processors in 60 seconds
🛡️ Get Your Backup Processor MatchNo signup • No credit card • 100% free • Takes 60 seconds
*AI matching based on 1,987 high-chargeback merchant applications. Approval odds are ML-predicted estimates, not guarantees. Final approval depends on processor underwriting, chargeback rate, mitigation plan quality, and compliance measures. We are an educational platform and do not submit applications or negotiate terms. Merchants must implement fraud prevention and chargeback reduction strategies to maintain accounts.