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Chargeback Cost Calculator

See the true monthly cost of chargebacks to your business, including lost goods, lost revenue and fees.

True cost of chargebacks
$675
every month
Lost sales & goods$600
Chargeback fees$75
Annual cost$8,100
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A chargeback usually costs more than the sale: you lose the goods, the revenue, and pay a fee. This estimate excludes staff time and rate increases.
The problem

Why a chargeback costs more than the sale

When a customer disputes a charge, you usually lose three things at once: the product you shipped, the revenue from the sale, and a chargeback fee from your processor. Add staff time and the risk of higher rates, and a single chargeback can cost two to three times the original transaction.

Step by step

How to use this calculator

1

Enter your chargebacks per month

How many disputes you typically receive in a month.

2

Enter your average transaction value

The value of a typical disputed sale.

3

Enter your chargeback fee

The flat fee your processor charges per chargeback, often $15 to $25.

How it works

How the cost adds up

The calculator totals the two hard costs of every chargeback. The first is the lost sale and goods, which is your number of chargebacks times the average value. The second is the fees, which is the count times your processor’s flat charge. Together they are the minimum a chargeback costs you.

What the estimate leaves out

  • Staff time spent gathering evidence and fighting disputes.
  • Higher processing rates if your chargeback ratio climbs.
  • The risk of losing card acceptance if ratios stay high.

Strong payment gateway tools and clear receipts prevent many disputes before they start.

Prevent them

How to reduce chargebacks

Most chargebacks are preventable. A few habits cut them sharply.

  • Use a clear billing descriptor so customers recognize the charge.
  • Verify cards with AVS and CVV on online sales through your gateway.
  • Keep signed receipts and delivery proof to win disputes.
  • Respond to every dispute quickly with evidence.

ProTech sets up prevention tools and helps you respond. Ask about chargeback protection.

Why ProTech

How ProTech Payments helps

Prevention tools

Fraud checks, AVS and CVV, and clear descriptors that stop disputes before they start.

Dispute support

We help you gather evidence and respond so you win more chargebacks.

US-based support

Real people in Katy, TX when a dispute needs attention fast.

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FAQ

Frequently asked questions

Everything US merchants ask before switching their online payments to ProTech.

Still have questions?

Talk to a real ProTech specialist, no call centers, no scripts.

Talk to a specialist →
or call (888) 255-0425
What is a chargeback?
A chargeback is a forced reversal of a card payment, started by the customer through their bank. You typically lose the sale, the goods, and pay a fee, which is why a chargeback costs more than the original transaction.
How much does a chargeback cost?
At minimum, the value of the lost sale plus a processor fee of about $15 to $25. Counting staff time and rate increases, the real cost is often two to three times the sale amount.
What is a chargeback fee?
It is a flat charge your processor applies each time you receive a chargeback, regardless of whether you win the dispute. The calculator includes it in your total.
How can I prevent chargebacks?
Use a clear billing descriptor, verify online cards with AVS and CVV through your payment gateway, keep proof of delivery, and respond quickly to disputes.
What chargeback ratio is too high?
Card networks generally flag merchants above about 1% of transactions. Staying below that protects your rates and your ability to accept cards.
Can ProTech help with chargebacks?
Yes. We set up prevention tools and help you respond to disputes with evidence. Ask about chargeback protection.