Chargeback Fees: Processor Library for Merchants

Emily VuittonChargebacks8 Comments

Chargeback Fees

What’s the true cost of a chargeback?

For starters, it’s more than just loss of sale and/or product.

From operational costs to the actual chargeback fee, a lot of factors play into a chargeback cost. For instance, think about all of the costs that go into running a successful business, such as the email marketing campaigns; transaction fees to process the initial purchase; packaging and shipping; and the cost of creating the product in the first place — you’re paying all of that plus the high cost of a chargeback.

That’s not to mention the time and effort you’ll make in clearing the dispute in order to be in good standing with your payment processor and customers.

In the end, you could be paying two to three times more in order to clear a chargeback, all on top of a lost sale. That’s why it’s important to take chargebacks seriously as they are not only costly but can damage your reputation and business in the long run.

In this article, we will discuss what exactly a chargeback fee is and provide a library of processor chargeback fees and their corresponding URLs to use as a reference.

What is a Chargeback Fee?

Chargeback fees are the lemon to the paper cut that is a chargeback. As a merchant, you’re already feeling the sting of a cut to revenue when the additional fees hit your account. Why do processors tack on an additional fee for chargebacks? Just like merchants, processors have a business to run and as you know, chargebacks are a time-consuming process all-around. These fees are intended to cover the costs associated with data transmission, the chargeback itself, and coverage against the chargeback exposure for the processor.

Some processors’ fees are relatively easy to find, even listed on pricing pages. For others, not so much. When our team set out to aggregate chargeback fees, we were surprised that about a third of the most popular processors required us to pour over terms and conditions, pricing fine print, sending several emails and making even more phone calls. For the fees listed below that were ascertained via individual communication, no link will be provided in the source. Please note that the unlisted fees aren’t gospel, and you should contact the processor directly to find out what your fees are.

Nevertheless, we rounded up 41 widely used processor chargeback fees that merchants can expect to incur when they receive a chargeback. The processors and associated chargeback fees are listed below.

Processor Chargeback Fees

# | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


#


2Checkout – $20.00

Source: FAQ

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A


Adyen – €7.50

Source: Pricing Overview

Amazon Payments – $20.00

Source: Help

Anedot – $15.00

Source: Pricing and Fees

Authorize.NET – $25.00

Source: Pricing

Avangate – $12.00

  • Chargeback reserve of $250 at the beginning of the contract.

Source: Online Chat

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B


BlueSnap – Fees Vary

  • Negotiable

Source: Dispute Docs

Braintree – $15.00

Source: FAQ

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C


CCBill – $25.00

Source: Pricing Fees

Chase Paymentech – $10.00

  • Negotiable

Source: Phone call

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E


eBay – $20.00

Source: Payments Terms of Use

Elavon – $0.00

Source: Merchant Services

Epoch – $12.50

Source: Business Services

eWAY – Fees Vary

  • Varies by bank

Source: Email

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F


FastSpring – $0.00

Source: Quora thread

First Data – $15.00

  • Negotiable

Source: FAQ & Email

Flattr (mangopay) – $0.00

Source: Pricing

Freshbooks – $15.00

Source: Support

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G


Google Wallet – Fees Vary

  • “We do not have a specific chargeback fee that we’re providing to the merchant. If the credit card issuer does not resolve the chargeback in your favor, that will be the time that we can determine the amount of the chargeback fee. Also, there’s an option for our user to contact you directly to request for a refund. It will be your discretion if you’ll be refunding the charge or not.”

Source: Online chat

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K


Klarna – Fees Vary

  • Merchant contract specific

Source: Email

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M


MasterPass – $0.00

Source: Help

Mollie – €19,00

Source: Support

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P


Paddle – $15.00

Source: Support

Payfort – $0.00

Source: Email

Paymentwall – $25.00

Source: Pricing

Paypal, Paypal Credit (Formerly Bill Me Later), PayPal Express Checkout – $20.00

Source: No collateral from PayPal, but copious merchant information online indicates a $20.00 fee.

PaySimple – $25.00

Source: Guide to Fees

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Q


Qgiv – $15.00

Source: Terms of Service

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R


RazorPay – $0.00

Source: Pricing

Recurly – Fees Vary

  • Varies by net revenue

Source: Phone call

RevenueWire – 6.95% of chargeback amount + 1 USD

Source: Merchant FAQ

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S


SecurePay – $25.00

Source: Online Payments

Square, Inc. – $0.00

Source: Pricing

Stripe – $15.00

Source: Support

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T


TrialPay – $15, $30, $60

  • $15 per Chargeback if either the Chargeback Rate is .5% or less or the total number of Chargebacks is less than five
  • $30 per Chargeback if the Chargeback Rate is more than .5% and less than 1.0%
  • $60 per Chargeback if the Chargeback Rate is 1.0% or above

Source: Merchant Services Agreement

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U


Upclick – $25.00

Source: Terms

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V


Visa Checkout – Fees Vary

Varies by partner

Source: Website

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W


WePay – $15.00

Source: Pricing

World Pay – £15,00

Source: Chat

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Z


Zombaio – $32.00

Source: Rates

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Need additional help with chargeback fees or help dealing with chargebacks in general? From lowering the dispute ratio to saving you time and eliminating frustration, see how Chargeback’s automated dispute management platform can help your business today. Click here to learn more and stop potential chargebacks from happening in the first place.

Why Chargeback?

Chargeback offers you a variety of resources to help better manage payment fraud and disputes. In addition to our articles and reason code library, we also provide eBooks, guides, case studies and events.

Furthermore, from lowering the dispute ratio to saving you time and eliminating frustration, see how the Chargeback App’s automated dispute management platform can help your business today. We work hard to offer the best solution in order to help merchants lower their dispute ratio, improve their win rate, and save time that they could have lost from chargeback responses.

Click here to learn more and stop potential chargebacks from happening.




Download Chargebacks Reason Code Guide




8 Comments on “Chargeback Fees: Processor Library for Merchants”

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