If all you want to know right now is the cost of a Stripe chargeback fee, here it is:
$15 per chargeback.
But if you're running a business, you'll want the full picture.
- How does Stripe justify this fee?
- Is $15 standard globally, or does it vary by region?
- Can you get your money back if you win the dispute?
- How does Stripe compare to other processors?
- And most importantly, how can you avoid Stripe chargeback fees altogether?
This guide covers everything: from how the fee works, to chargeback protection options, to tools that can help you prevent disputes before they happen.
Let’s find the answers to these questions and more.
What is the Stripe Chargeback Fee?
The Stripe chargeback fee is a flat $15 per dispute, applied each time a customer initiates a chargeback against your business. This fee is added on top of the potential revenue loss from the transaction itself.
It’s not a penalty - just Stripe passing along the costs they incur from the banks and credit card networks. It applies automatically to every chargeback, whether you win or lose the dispute. No exceptions, no refunds.
While $15 may not seem like much, it adds up fast if chargebacks are frequent. And that's why prevention is key.
Why Does Stripe Impose This Chargeback Fee?
Every transaction incurs costs. For a payment processor like Stripe, the ability to process millions of secure online transactions daily requires a significant and ongoing investment.
This is not unique to payment processors. Your business is in the same boat. You have operational and administrative costs that must be paid, so you factor them into your pricing.
Because there is intense competition between payment processors, it’s in Stripe’s best interest to keep their prices low.
But, in the case of disputes leading to chargebacks, the banks assess fees to Stripe for each disputed transaction. Stripe must pass these fees, plus their overhead, on to you, the merchant.
Stripe’s basic pricing is set at a standard pay-as-you-go rate per successful charge against a credit or debit card. Since disputed transactions are not standard, they are priced separately per instance.
The $15 charge is pay-as-you-go pricing.
Stripe Chargeback Fees by Region
Stripe’s pricing page details its pricing structure, including dispute fees (chargeback fees).
If you are not in the US, your region’s pricing page may have a different rate in a different currency. For this reason, you’re best off if you check the Stripe pricing page for your region.
Just click the link above, and your browser should take you to the pricing page you want.
Can You Get a Refund If You Win the Dispute?
Since mid-2023, Stripe no longer refunds any chargeback fees.
Before this time, disputes dismissed against the merchant resulted in a refund of Stripe’s chargeback fee. No longer.
You may see references to chargeback refunds online, but they are no longer accurate.
Every Stripe dispute costs you $15, win or lose.
What’s the Purpose of Stripe’s Chargeback Fee?
Stripe’s $15 chargeback fee isn’t meant to penalise merchants - it’s simply a way to recover the costs Stripe incurs when handling disputes. Every chargeback requires Stripe to process documentation, liaise with banks, and cover fees charged by the card networks.
Instead of raising fees across all transactions, Stripe keeps standard pricing low and charges this fee only when a dispute occurs. It’s a pay-as-you-go model designed to balance fairness and sustainability.
Is Stripe’s Fee High Compared to Other Providers?
The Stripe chargeback fee of $15 is relatively competitive. Other providers’ rates vary from $5 to $100 or more. These fees are typically non-refundable as well.
Does Stripe Offer Chargeback Protection?
Yes. Stripe offers Stripe Chargeback Protection.
Currently, for a fee of $0.4% per transaction (every transaction, not just those disputed), Stripe will cover the disputed amount of fraudulent transactions and waive the dispute fees. You needn’t submit evidence to prove your case.
Note that this is for fraud chargebacks. It doesn’t apply to:
- Recurring transactions
- Chargebacks with a non-fraud designation (reason code)
- Manually-approved transactions.
Also, the standard processing fee still applies. At this time, the fee is 2.9% + $0.30. Check your region’s pricing page for the current rate.
Of course, the standard processing fees and Chargeback Protection fees add up quickly. This may not be your best option.
You should avoid chargebacks before they happen. Then, you don’t incur any additional fees associated with disputes and chargebacks.
And you don’t lose the revenue those chargebacks cost you.
How to Avoid Stripe Chargeback Fees
Our service, ChargebackStop, offers an automated platform that eliminates 99% of chargebacks. Seriously.
ChargebackStop detects and prevents chargebacks. We help companies scale and grow.
How can ChargebackStop Prevent Stripe's Chargeback Fees?
ChargebackStop monitors processing platforms, such as Stripe, to predict potential chargebacks.
Once a potential chargeback is detected, we alert you, offering actionable recommendations to prevent the chargeback from happening.
For instance:
- We receive an alert when a chargeback is initiated.
- You can automatically process a refund before the chargeback is finalised.
- The chargeback is stopped before it can take effect.
When using Stripe, each chargeback costs you $15 plus the revenue from the sale.
We can save you this money by interceding and alerting you to your proactive options for each identified transaction.
BONUS: Dispute Assistant
If you’re facing a chargeback now, we can help.
ChargebackStop’s Dispute Assistant helps you increase your chances of winning a dispute.
Dispute Assistant is free of charge and open to everyone.
Just answer a couple of easy questions, and our assistant will provide dispute-winning guidance.
It’s that simple.
Looking Forward
You may need more information.
Our support team is available 24/7 to answer your questions about anything chargeback-related.
Visit ChargebackStop.com today for a free demo of our platform.
FAQ: Stripe Chargeback Fees
Why does Stripe charge a fee for chargebacks?
Stripe incurs costs for processing chargebacks, including administrative fees charged by credit card networks and the operational costs of handling the dispute process. They pass these costs on to the merchant.
What can trigger a chargeback on Stripe?
Chargebacks can be triggered by a variety of reasons, including unauthorised transactions, not receiving the purchased product or service, or dissatisfaction with the product or service received.
What should I do if I receive a chargeback?
Upon receiving a chargeback, you should respond promptly with the required documentation and evidence to support your case, such as proof of delivery or service fulfilment. To get help, use ChargebackStop's Dispute Assistant.
But if you're running a business, you'll want the full picture.
How does Stripe justify this fee?
Is $15 standard globally, or does it vary by region?
Can you get your money back if you win the dispute?
How does Stripe compare to other processors?
And most importantly—how can you avoid Stripe chargeback fees altogether?
This guide covers everything: from how the fee works, to chargeback protection options, to tools that can help you prevent disputes before they happen.
