How much do chargebacks cost?
Depending on your provider, chargebacks are typically $20 - $30 per instance. If you lose a chargeback, you also lose the value of the sale, too.
Whenever a customer initiates a chargeback, a chargeback fee will occur, regardless of the eventual outcome of the dispute. The fee will depend on who your provider is. AND has a $15 fee for our high-volume merchants, and all other merchant accounts have a $20 chargeback fee. Chargebacks follow strict guidelines laid out by card associations. Chargeback fees are assessed to cover the internal cost of the card association requirements surrounding chargeback notifications, reporting, and arbitration.
But outside of the guaranteed chargeback fee standard of all chargebacks, it’s important to note that your costs may not end there (on top of your valuable time and energy fighting a chargeback). The amount of the dispute itself goes back to the customer whenever the chargeback is initiated and will not be returned unless the chargeback is decided in your favor! If the chargeback is not decided in your favor you will be out the funds from the dispute in question as well as the cost of the goods (if shipped, merchants rarely have goods returned) and any services rendered.
In rare cases, large or regular chargebacks can also impact your ability to accept credit cards in the future. Learn more about chargeback ratios, and why it's important to keep them low here.
We're serious about saving money.
AND is dedicated to getting your processing rates as close to zero as possible. We utilize membership pricing along with cash discounting and surcharging programs to maximize savings. Let our analysts review your statements and see how much money we can put back in your pockets.