Which of the following is true regarding Excessive Chargeback Merchants (ECMs)?

The assertion regarding Excessive Chargeback Merchants (ECMs) being characterized by having a Chargeback Transaction Rate (CTR) that is at least 100 basis points over a period of two months is accurate. In the payments industry, a chargeback is a transaction that is disputed by a consumer, and a CTR is a measure of the frequency of these chargebacks relative to transaction volume. When a merchant's CTR exceeds a certain threshold, such as 100 basis points, it signals to payment processors and card networks that they may be experiencing issues with consumer satisfaction or fulfillment practices. This designation as an ECM is crucial because it triggers closer scrutiny and may lead to penalties or the implementation of corrective measures to improve the merchant's operations.

The other options do not accurately define ECMs. For example, having fewer than 50 chargebacks in a month does not align with the broader definition of ECMs, which considers relative performance to transaction volume rather than an absolute number of disputes. Similarly, actual shipping practices are not a primary identifier in determining ECM status, but rather how frequently a merchant experiences chargebacks based on their transaction volume. Lastly, the inclusion of only physical storefronts is also inaccurate since ECMs can operate across various platforms, including e-commerce,