> Let's say your chargeback rate goes from 0.1% to 0.2%, but your conversion rate goes from 50% to 60%, then you come out way ahead. No, you don't. You need m

> Let's say your chargeback rate goes from 0.1% to 0.2%, but your conversion rate goes from 50% to 60%, then you come out way ahead. No, you don't. You need more information about the transaction then that. What if your profit margin is 1%? Then you've come out even, because chargebacks cost you the full cost of an item, but an extra conversion only nets you the profit on that sale. Note: I assumed that the 0.1% and 50% to 60% were both percentages of potential sales, because it made the math easier. Otherwise, you have 20% x 1%=2% more profit and .2% x 120%-.1%=.14% more loss from chargebacks, so you have come out slightly ahead.