Chargeback Fees

Chargeback Fees are charges imposed on merchants whenever a chargeback is initiated against them. These fees are meant to cover the administrative costs associated with processing chargebacks and can vary significantly depending on the merchant’s payment processor and the specifics of the merchant agreement.

Chargeback fees are a financial burden on merchants, separate from the disputed transaction amount. Unlike the transaction amount, which may be returned to the merchant if the chargeback is overturned, chargeback fees are typically non-refundable, regardless of the dispute’s outcome.

This non-refundable nature of chargeback fees adds an extra layer of financial impact on merchants, emphasizing the importance of proactive chargeback prevention and effective dispute management strategies to minimize the occurrence of chargebacks and associated fees.