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.

‍

Is this fee amount only for the USA? What about other regions?

‍

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.

‍

If I win the dispute, do I get a refund of the chargeback fee?

‍

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.

‍

Is this chargeback fee intended to be punitive against merchants?

‍

No, that’s not its intent. As I said, Stripe must pass its costs onto you to stay in business. The current pricing structure may change over time, but for now, Stripe thinks it’s better to keep the standard charge low and tack on extra fees only when required.

‍

Is this a competitive rate? What do other processing providers charge?

‍

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.

‍

Is there a Stripe alternative to paying chargeback fees?

‍

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 can I prevent chargebacks before they happen?

‍

Our service, ChargebackStop.com, offers an automated platform that eliminates 99% of chargebacks. Seriously.

ChargebackStop detects and prevents chargebacks. We help companies scale and grow.

‍

How is this possible?

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.com’s Dispute Assistant.

‍

Contents

Why does Stripe impose a chargeback fee?