What's the True Cost of a Chargeback?¶
Mastercard. (2025). What's the True Cost of a Chargeback?.
Cited by¶
1 citation across 1 artifact.
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Primes¶
- Return Path
- In finance and payments it is refunds, chargebacks, and rescission rights — the forward channel high-throughput and low-marginal-cost, the return channel demanding dispute handling, fraud review, and multi-day settlement.
This sourceDocuments that a payment reversal (chargeback) costs the merchant far more than the forward transaction — roughly 4x the transaction value once fees, lost goods, and dispute/fraud handling are counted — establishing the return channel's asymmetric per-unit cost and dispute-handling burden.
- In finance and payments it is refunds, chargebacks, and rescission rights — the forward channel high-throughput and low-marginal-cost, the return channel demanding dispute handling, fraud review, and multi-day settlement.
Verification¶
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