A chargeback is when a cardholder disputes a charge with their bank and the money is pulled back from you. On top of losing the sale, most processors add a chargeback (dispute) fee. Here is what each charges and how to keep them rare.
Chargeback fees by processor (June 2026)
| Processor | Chargeback / dispute fee | Refunded if you win? |
|---|---|---|
| Square | $0 (absorbed) | n/a |
| Stripe | $15 | Yes |
| Braintree | $15 | Varies |
| Helcim | $15 | Yes |
| PayPal | $20 | Often waived (Seller Protection) |
| Amazon Pay | $20 | No |
| Authorize.net | $25 | No |
| Stax | $25 | No |
| Clover | $25 | No |
| Paddle / Lemon Squeezy | Handled by the platform | n/a (they carry the risk) |
See the live lowest chargeback fee ranking. Snapshot June 2026 — verify on each provider’s pricing page.
The fee is the small part
If you lose a dispute you lose the sale amount, the goods, and the fee. A $200 disputed order costs you $200 + the goods + $15-$25 — the per-dispute fee is the least of it. That is why prevention beats fee-shopping.
How to cut your chargeback rate
- Clear billing descriptor — customers dispute charges they don’t recognize. Use a name that matches your brand.
- Refund fast. A refund is cheaper than a lost dispute plus fee, and it protects your dispute ratio.
- Fraud screening + 3-D Secure on higher-risk or high-value transactions shifts liability to the issuer.
- Keep evidence — delivery confirmation, signed terms, communication logs — to win representment.
- Watch your ratio. Exceeding card-network thresholds (around 0.9%-1%) lands you in costly monitoring programs.
For broader cost context, read effective rate explained and compare Stripe vs Square.