Fraud Rate & Chargeback Cost
Estimate total fraud cost, chargeback fees, and prevention ROI. Enter values for instant results with step-by-step formulas.
Worked Examples
Example 1: Small Store
Problem:$100k Revenue, 10 Chargebacks ($100 AOV), $25 Fee.
Solution:Loss = $1000 (Goods) + $250 (Fees) + Tools/Labor.
Result:Total Cost: >$1,250
Frequently Asked Questions
What is a high chargeback rate?
Anything above 0.9% is dangerous. Above 1% puts you in excessive fraud programs. 0.5% is average for high-risk; 0.1% is standard for low-risk.
Can I win a chargeback dispute?
Yes, 'Representment'. Success rates vary (20-40% typically). You need proof of delivery, IP logs, and AVS matches.
How much do prevention tools cost?
Variable. Some charge per transaction ($0.05 - $0.10), others take a % of protected revenue.
Why calculate manual review cost?
It's often hidden. If your team spends 20 hours/week reviewing orders, that's half a salary.