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What Are the Impacts of Chargebacks on Your Organization?

Geneviève Têtu avatar
Written by Geneviève Têtu
Updated over a year 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

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