Calculate Your Chargeback Cost
RESULTS*
Based on your inputs, your total chargeback cost is approximately:
- $48,300 per month
- $579,600 per year
At this level, chargebacks commonly lead to monitoring programs (e.g. VAMP), elevated fees, or account restrictions.
Immediate action is usually required to stabilize risk and protect payment continuity.
Your chargeback costs are high and likely creating meaningful financial and operational drag.
Based on your inputs, your total chargeback cost is approximately:
- $48,300 per month
- $579,600 per year
Businesses at this level commonly see suppressed approvals, higher fees, or reserve requirements. Optimization at this stage can still prevent escalation.
Your chargeback costs are elevated and likely affecting payment performance.
Based on your inputs, your total chargeback cost is approximately:
- $48,300 per month
- $579,600 per year
At this level, costs often start influencing approval rates, processor risk models, and effective fees. Early action here is typically the most cost-effective.
Your chargeback costs appear controlled based on your inputs.
Based on your inputs, your total chargeback cost is approximately:
- $48,300 per month
- $579,600 per year
At this level, costs are unlikely to materially impact approval rates or trigger monitoring programs. As volume grows, even controlled costs can compound, so continued prevention is recommended.
*Results are indicative estimates based on your inputs and typical chargeback cost assumptions.
Why Chargebacks Cost More Than You Think
A chargeback is not just a refund.
Every dispute usually includes:
- Lost revenue
- Lost product or service delivery cost
- Chargeback fee ($15–$50+)
- Operational handling cost
- Increased processing rates
- Lower approval rates over time
This is why most experts estimate: A single chargeback costs 2.5x to 3.5x the transaction amount.
The Hidden Damage Chargebacks Cause
Beyond the obvious costs, chargebacks:
- Lower your approval rates
- Increase false declines
- Trigger processor reviews
- Push you toward programs like VAMP and Visa monitoring programs
- Can get your account terminated
This is especially dangerous for high-risk businesses and subscription companies.
Chargebacks Compound
As your ratios increase:
- Fees go up
- Risk scrutiny increases
- Approval rates go down
- Scaling becomes harder
- Your business becomes fragile
This is why chargeback prevention is not optional.
How to Actually Reduce Chargeback Costs
Real solutions include:
- Pre-dispute alerts (Ethoca & Verifi)
- Adaptive 3D Secure
- Better fraud filtering
- Better refund and support flows
- Automated dispute responses
- Better payment signals via tokenization
How SeamlessPay Reduces Chargeback Cost at the Source
SeamlessPay helps:
- Stop disputes before they become chargebacks
- Automate dispute handling
- Reduce fraud and friendly fraud
- Monitor VAMP and network thresholds
- Protect approval rates using:
