Work out chargeback cost instantly with clear inputs, formula shown and shareable results.
A chargeback costs the goods, the revenue and a fee, so the total loss usually exceeds the order value. Card schemes also monitor the rate, and breaching roughly one percent triggers remediation programmes and penalties.
Chargeback cost
Cost = chargebacks × (order value + fee); rate = chargebacks / transactions
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
Because exceeding scheme thresholds can lead to fines, higher reserves or loss of card acceptance entirely.
Clear billing descriptors, prompt refunds, delivery confirmation and fraud screening on high-risk orders.