Revealing the Hidden Cost of Chargebacks
Labeling the unseen variables that increase the financial damage of chargebacks.
by Roenen Ben-Ami
A chargeback costs much more than the penalty levied against your merchant account. While it is easy to see those direct fees sent by a financial institution for each customer dispute, there are in fact several additional ancillary costs associated with chargebacks that further harm your business’s profitability. From shipping expenses to processing fees, there is a complex set of expenses that are not overtly visible or easy to calculate—and those costs have a crucial impact on your bottom line.
In addition, the hidden expenses associated with chargebacks continue to rise in price, as chargebacks are now estimated to be a $125 billion problem.
It is assessed that for every $100 lost as a chargeback, the actual price tag is $240. Considering that the rise of eCommerce and digital payments only signals further growth in the total volume of customer chargebacks, it is important that merchants gain awareness of all the hidden costs involved in a customer dispute.
It is assessed that for every $100 lost as a chargeback, the actual price tag is $240. Considering that the rise of eCommerce and digital payments only signals further growth in the total volume of customer chargebacks, it is important that merchants gain awareness of all the hidden costs involved in a customer dispute.
Download our full report to understand each of these unseen variables and learn the impact they have on a merchant's bottom line.
With a clear understanding of how each chargeback expense hampers your ability to maintain and run your business, you will be able to develop solutions that better protect revenues.
With a clear understanding of how each chargeback expense hampers your ability to maintain and run your business, you will be able to develop solutions that better protect revenues.
Download the Report
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