Chargeback Fees

A chargeback is what happens when funds are returned to a customer, usually after they have complained about an item on their credit card statement.

This can happen for various reasons including:

  • technical or administrative errors, e.g. a purchase gets processed twice
  • customers claiming they did not authorise a purchase
  • customers claiming they haven't received goods as promised

What are the Fees?

Payment gateway and merchant account providers generally charge you, the merchant, each time a chargeback occurs.

Chargeback fees are typically in the £5 to £15 range (on top of the initial amount being refunded to the cardholder.)

How to Reduce Chargebacks

You can minimise chargebacks (and chargeback fees) by having good customer care and up-to-date authentication technology (such as 3-D Secure).