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What are chargeback fees?

charge - back fees
noun

Chargeback fees refer to non-refundable expenses imposed by the acquiring bank of a merchant for each instance of a chargeback. These fees are the responsibility of the merchant and are designed to cover the administrative costs associated with resolving disputes. The specific fee amount may vary depending on the individual case, as it is determined by the acquiring bank.

While many payment processors are transparent about their fees at the gateway level, there are also undisclosed charges, such as those related to refunds, among others that should be considered. Additionally, it's important to be mindful of the requirement for extra contracts and support resources in addition to the fees. Keep in mind that the financial impact of a chargeback goes beyond just the transaction amount.