Skip to main content
All CollectionsAdvice to OrganizersChargebacks
What Are the Impacts of Chargebacks on Your Organization?
What Are the Impacts of Chargebacks on Your Organization?
Geneviève Têtu avatar
Written by Geneviève Têtu
Updated over 6 months ago

In addition to the direct financial losses related to refunding transactions, chargebacks can also have indirect negative consequences for your organization.

Financial Impacts

  • Direct Costs: A fee of $40.00 is charged to the organization for each lost chargeback;

  • Refund of the Disputed Amount: The transaction amount is refunded to the cardholder;

  • Increased Credit Card Processing Fees: Card issuers may increase credit card processing fees for organizations with a high chargeback history;

  • Holdbacks from Your Payment Platform: Your revenue might not be easily accessible;

  • Loss of Revenue: The chargeback represents a loss of revenue for the organization.

Reputation Impacts

  • Reputational Damage: Chargebacks can harm the organization's reputation among consumers;

  • Loss of Customer Trust: Customers may be less inclined to make purchases from an organization with a high chargeback history;

  • Refusal of Service by Payment Platforms: Some platforms may refuse to do business with your organization if you have a high chargeback history.


Learn more about Chargebacks

Did this answer your question?