You run a business, not a courtroom—but when chargebacks hit, it can feel like you're constantly defending yourself. One minute, a customer makes a purchase. A few days or weeks later, you’re staring at a Stripe dashboard alert, watching money get pulled from your account. On top of that, you’re now out another $15 just because the dispute was filed.
Whether you’re selling handcrafted gear, offering digital subscriptions, or running a storefront with global customers, chargebacks are part of life when you accept card payments. Stripe makes it easy to get paid, but that convenience doesn’t make you immune to disputes—or the fees that come with them.
That’s why it’s worth taking a closer look at how Stripe chargeback fees work. Not just what they cost, but how they affect your bottom line, when they’re charged, and what options you have to avoid them altogether. Let’s unpack it.
What Are Stripe Chargeback Fees?
If a cardholder disputes a charge through their bank, Stripe initiates a formal review process and immediately removes the transaction amount from your available balance. But that’s not all—Stripe also charges a $15 non-refundable dispute fee as soon as the case is opened.
If you decide to fight the chargeback and lose, Stripe will add an additional $15 counter fee starting in June 2025, bringing your total loss to $30 plus the transaction itself.
Here’s how it plays out:
- Win the dispute: You get the transaction amount back, the counter fee is refunded, but the original $15 dispute fee is gone for good.
- Lose the dispute: You lose the sale, and you're out $30 in fees.
These fees are per dispute, regardless of the transaction size.
Why Does Stripe Charge These Fees?
Chargebacks aren’t handled entirely by Stripe; rather, they go through card networks like Visa and Mastercard, and sometimes involve multiple banks. Stripe has to coordinate between all parties, collect and format your evidence, and meet strict deadlines. That process takes time, labor, and system resources.
It might seem like the Stripe chargeback fee is a profit grab, but it’s actually an operational charge. It also serves as a soft reminder to keep dispute rates low and your fraud filters tight.
How Stripe Chargeback Fees Affect Your Business
For high-ticket sales, a single dispute might be frustrating, but not devastating. But if your average order is $25 and you lose two chargebacks in a week, that’s $60 gone, plus the value of those orders.
The math gets rough fast. A few recurring disputes can eat into monthly revenue without much warning, especially if your dispute win rate is low or you're not responding quickly.
Even worse, a high dispute rate (usually over 1%) can flag your account as high-risk. That means more scrutiny, possible reserve holds, or even account termination.
Stripe Chargeback Protection: Worth It?
Stripe offers an optional Chargeback Protection service, which costs 0.4% of each transaction. With this enabled, Stripe will:
- Cover the transaction amount if the chargeback is due to fraud.
- Waive the $15 dispute fee.
- Handle the dispute for you.
This can be a helpful safety net, but there are catches:
- It only applies to eligible payments marked as protected at checkout.
- It doesn’t cover disputes based on dissatisfaction, delivery issues, or service complaints.
- You’ll still need to maintain good operational practices.
So is it worth it? If you're seeing regular fraudulent chargebacks or selling digital goods prone to abuse, it could save you money. But for low-risk merchants with strong prevention strategies, the extra 0.4% might not pay off.
How to Avoid Stripe Chargeback Fees
You can’t dodge every dispute, but you can build systems that prevent most of them and strengthen your response when they do happen.
1. Use Clear Billing Descriptors
Make sure your business name shows up recognizably on your statement descriptor. Customers are more likely to dispute when they don’t recognize the charge.
2. Communicate Policies Upfront
Display refund, cancellation, and shipping policies clearly before checkout. Surprises turn into disputes.
3. Track Shipments & Confirm Delivery
For physical goods, always use tracked shipping and upload the tracking info to Stripe. This can be crucial evidence in a chargeback case.
4. Collect Strong Customer Data
Use AVS (Address Verification System), CVV matching, and even IP address logging when possible. The more evidence you have, the stronger your dispute case.
5. Respond Quickly
Stripe usually gives you between 7 to 21 days to respond. Missing that deadline means automatic loss. Set chargeback alerts or automate your dispute response process if needed.
FAQs About the Stripe Chargeback Fee
What is the Stripe chargeback fee?
Stripe charges a $15 non-refundable dispute fee for each chargeback, no matter the transaction amount. If you fight the dispute and lose, you’ll be charged an additional $15, totaling $30.
Can I get the fee back if I win the dispute?
You’ll get the disputed transaction amount returned and a refund of the counter fee, but the original $15 dispute fee stays with Stripe, even if you win.
Does refunding the customer prevent the fee?
Only if you refund before the customer files a chargeback. Once a dispute is in motion, the fee is charged—even if you issue a refund later.
Are Stripe chargeback fees the same everywhere?
No. The standard fee is $15 in the U.S., but it can vary by country. For example, it’s £20 in the U.K. and €15 in most of Europe. Always check Stripe’s regional pricing to confirm.
How does Stripe Chargeback Protection work?
For 0.4% of each eligible transaction, Stripe will cover fraud-related chargebacks and waive the dispute fee. It only applies to fraud disputes and doesn’t cover product complaints or service-related issues.
Final Thoughts
Running an online business means balancing risk, and chargebacks are one of the costs that sneak in under the radar. A few Stripe dispute fees here and there might not seem like much—until they pile up, especially if you're operating on tight margins or selling low-ticket items. And when you're losing $15 (or $30) at a time, it's not just a financial drain—it’s a distraction from what matters most: growing your business.
The key is knowing how Stripe chargeback fees work and building a system to keep them in check. That means tightening your checkout flow, staying ahead of fraud, and being ready with strong evidence when disputes do arise.
Stripe Disputes Cost More Than Just a Sale
Every dispute costs time, money, and attention. Stripe’s chargeback fees don’t just take a bite out of your profits—they take you away from customers and growth. If your team is caught off guard each time a chargeback lands in your inbox, that’s revenue slipping through the cracks.
Chargeblast helps businesses catch disputes earlier, respond faster, and automate evidence where it counts. No more scrambling through receipts or missing deadlines. With real-time alerts and smarter tools, we make it easier to stay on top of your Stripe chargeback fees before they get out of hand. Ready to close the loop on revenue loss? Book a demo below or get started today.
