Stripe Chargeback Fees & Limits: Complete 2026 Pricing Breakdown

Stripe introduced significant changes to their chargeback fee structure in June 2025, and if you're processing payments through Stripe, these changes directly impact your bottom line. This guide breaks down everything you need to know about Stripe's chargeback fees, how they compare to competitors, and which payment processor makes sense for your business.

What Changed in June 2025: The New Counter Dispute Fee

On June 17, 2025, Stripe rolled out a major change that caught many merchants off guard: the Counter Dispute Fee.

Here's how it works now:

Before June 2025:

• Customer files chargeback → You pay $15 dispute fee
• You fight it and lose → Total cost: $15
• You fight it and win → Total cost: $15

After June 2025:

• Customer files chargeback → You pay $15 dispute fee
• You fight it and lose → Total cost: $30 ($15 + $15 counter fee)
• You fight it and win → You get $15 back, total cost: $15

The new counter dispute fee only applies when you actively contest a chargeback. If you accept the dispute without fighting, you only pay the standard $15 fee.

Why did Stripe make this change? According to their announcement, it's to offset rising costs from card networks and banks for managing disputes. The fee structure also discourages merchants from contesting every single chargeback regardless of merit.

The Refund Rules Are Critical:

• Win completely → Counter fee refunded, standard fee NOT refunded
• Lose completely → Both fees charged, nothing refunded
• Win partially → Both fees charged in full, nothing refunded

That last point is important. If you win $80 of a $100 dispute, you still pay the full $30 in fees.

Stripe's Fee Structure Explained: Standard vs Counter Fees

Let's break down exactly when you pay what, because the timing matters for your cash flow.

Standard Dispute Fee (Non-Refundable)

When it hits: Immediately when a customer's bank notifies Stripe of the chargeback

Amount deducted: Dispute fee + full transaction amount

Where it comes from: Your Stripe balance or linked bank account

This fee is automatic. You don't get a choice. The moment the chargeback is filed, Stripe debits your account.

Important exception: Mexico is the only country where Stripe may refund the standard dispute fee if you win or if the customer withdraws the dispute.

Counter Dispute Fee (Conditionally Refundable)

When it hits: Only when you submit evidence to fight the chargeback

Amount: Same as standard fee for your country

Refund conditions: Only if you win the dispute completely

Here's a real-world example:

Transaction: $200 product sale

Chargeback filed: Day 1

Your balance immediately:

• $200 (held pending dispute)
• $15 (standard fee debited)
• Balance impact: -$215

You decide to fight it: Day 3

• $15 (counter fee debited)
• Balance impact: -$230 total

Outcome 1 - You Win (Day 90):

• $200 returned
• $15 counter fee returned
• $15 standard fee NOT returned
• Final cost: $15

Outcome 2 - You Lose (Day 90):

• Nothing returned
• Final cost: $230

Outcome 3 - Partial Win, $150 recovered (Day 90):

• $150 returned
• $0 fees returned (both fees stay charged)
• Final cost: $80

This changes the math on whether fighting chargebacks makes financial sense, especially for lower-value transactions.

Country-by-Country Pricing: What You'll Actually Pay

Stripe operates globally, and chargeback fees vary significantly by region. Here's the complete breakdown:

Special Case: SEPA/Cartes Bancaires

If you're in the Single Euro Payments Area and process payments through the Cartes Bancaires network:

• No fee for receiving disputes
• Cannot challenge these disputes
• Applies to SEPA businesses only, not all EU merchants

Currency Conversion Considerations

If you operate internationally, exchange rate fluctuations between the charge date and chargeback date can affect your actual costs:

Example:

• Customer pays €100 (equals $109 USD at time of charge)
• You receive $109 in your USD account
• Two months later: Chargeback filed when €100 = $112
• You must return $112, even though you only received $109
• Extra loss: $3 from exchange rate changes alone

Smart Disputes: Is 30% Worth Skipping the $15 Fee?

Alongside the counter dispute fee, Stripe launched Smart Disputes — an AI-powered system that automatically fights chargebacks on your behalf.

How It Works

1. Chargeback comes in

2. Stripe's AI analyzes if it's "winnable"

3. If yes, automatically compiles and submits evidence

4. If no, doesn't contest (saves you the counter fee)

The Pricing Trade-Off

With Smart Disputes:

• Standard fee: $15 (still charged)
• Counter fee: $0 (waived)
• Success fee: 30% of recovered amount

Manual Fight:

• Standard fee: $15 (still charged)
• Counter fee: $15 (refunded if you win)
• Success fee: $0

ROI Analysis

Let's run the numbers on different transaction amounts:

$50 Disputed Transaction

Manual approach (you win):

• Standard: $15
• Counter: $15 (refunded)
• Total cost: $15
• Net recovered: $35

Smart Disputes (AI wins):

• Standard: $15
• Counter: $0
• Success fee: $15 (30% of $50)
• Total cost: $30
• Net recovered: $20

Winner: Manual (you save $15)

$200 Disputed Transaction

Manual approach (you win):

• Total cost: $15
• Net recovered: $185

Smart Disputes (AI wins):

• Standard: $15
• Success fee: $60 (30% of $200)
• Total cost: $75
• Net recovered: $125

Winner: Manual (you save $60)

$500 Disputed Transaction

Manual approach (you win):

• Total cost: $15
• Net recovered: $485

Smart Disputes (AI wins):

• Standard: $15
• Success fee: $150 (30% of $500)
• Total cost: $165
• Net recovered: $335

Winner: Manual (you save $150)

When Smart Disputes Makes Sense

Smart Disputes is worth considering if:

• High dispute volume (50+ per month) where manual review is impossible
• Low average transaction value ($30-$75 range)
• Limited staff resources to gather evidence
• Simple transactions without complex evidence requirements
• You want hands-off management

Skip Smart Disputes if:

• High-value transactions ($200+) where 30% fee is substantial
• Complex evidence from CRM, shipping, or communication systems (Smart Disputes can't access these)
• You have dedicated staff who can fight disputes effectively
• Custom workflows that require specific evidence presentation

The Bottom Line: For transactions over $100, manual dispute management or third-party services typically offer better ROI than Smart Disputes' 30% success fee.

Stripe vs PayPal vs Square: The Real Fee Comparison

How does Stripe stack up against the competition? Here's the no-fluff comparison:

Processing Fees (Before Disputes)

Chargeback Fee Comparison

*PayPal doesn't charge an additional fee for fighting chargebacks—you pay one flat fee regardless. Square charges zero fees for all disputes.

Square's unique advantage: Zero chargeback fees. They compensate for this with slightly higher processing rates, but if you have moderate dispute rates, the savings can be significant.

PayPal's Tier System

PayPal charges different dispute fees based on your dispute rate:

• Standard: $8 per dispute
• High Volume: $16 per dispute (if dispute rate ≥ 1.5% AND >100 transactions in past 3 months)
• Card Payment Services: $20 for transactions not using PayPal account/guest checkout

PayPal Seller Protection: The game-changer is that PayPal waives ALL fees if you meet Seller Protection requirements:

• Proof of delivery with tracking
• Ship to confirmed address
• Eligible transaction type

If you can structure your business to qualify for Seller Protection, PayPal becomes the cheapest option.

Real-World Cost Comparison

Let's say you process 1,000 transactions per month at $75 average, with 15 chargebacks (1.5% rate):

Stripe:

• Revenue: $75,000
• Processing: $2,475 (2.9% + $0.30)
• Chargeback fees: $225 (15 × $15)
• If fight all: +$225 (15 × $15 counter)
• Total: $2,700-$2,925

PayPal:

• Revenue: $75,000
• Processing: $1,807 (2.29% + $0.09)
• Dispute fees: $240 (15 × $16 high volume)
• With Seller Protection: $0 dispute fees
• Total: $1,807-$2,047

Square:

• Revenue: $75,000
• Processing: $2,050 (2.6% + $0.10)
• Chargeback fees: $0
• Total: $2,050

Winner by scenario:

• Best overall: PayPal with Seller Protection ($1,807)
• Best without protection: Square ($2,050)
• Most expensive: Stripe with counter disputes ($2,925)

Radar Pricing: Basic vs Fraud Teams

Stripe's Radar fraud protection comes in two tiers, each with different pricing and capabilities.

Radar (Basic Machine Learning)

Cost: 5¢ per screened transaction

Waived for: Accounts on standard 2.9% + $0.30 pricing

What you get:

• AI-powered fraud detection
• Automatic high-risk payment blocking
• Risk scoring (0-100)
• Early fraud warnings
• Basic rules

Best for: Small to medium businesses on standard pricing (essentially free)

Radar for Fraud Teams (Advanced)

Cost: 7¢ per screened transaction OR 2¢ with standard pricing

Everything in Basic plus:

• Custom rules engine (100+ attributes)
• Block/allow lists
• Manual review queues
• Advanced analytics dashboard
• Risk insights and trends
• Adaptive 3D Secure
• Radar Assistant (AI rule creator)
• Team collaboration tools

Best for: High-volume merchants or those with complex fraud patterns

Pricing Calculator

Monthly volume: 10,000 transactions

Radar Basic (Standard Pricing):

• Cost: $0 (waived)
• Savings from prevented fraud: Variable

Radar for Fraud Teams (Standard Pricing):

• Cost: $200 (10,000 × $0.02)
• Better fraud detection
• Custom controls

Radar for Fraud Teams (Custom Pricing):

• Cost: $700 (10,000 × $0.07)
• Most expensive option

ROI Consideration: If Radar for Fraud Teams prevents even 5 chargebacks per month, the $200 investment saves you:

• 5 × $30 (dispute costs) = $150
• Plus transaction amounts
• Plus staff time
• Typically pays for itself

Additional Stripe Fraud Tools

Chargeback Protection: 0.4% per transaction

• Covers fraudulent dispute amounts
• Waives dispute fees
• Only covers fraud (not friendly fraud)
• Cost for $1M/month: $4,000

3D Secure: $0.05 per authentication

• Shifts fraud liability to issuer
• Reduces fraud by up to 40%
• May reduce conversion by 5-15%

Understanding Dispute Thresholds: What Triggers Problems

Card networks (Visa, Mastercard) and payment processors monitor your dispute rates. Understanding these thresholds is critical because they directly impact your fees and processing ability.

Multiple Thresholds to Watch

There isn't one magic number—different entities monitor different metrics:

Payment Gateway Internal Thresholds:

• 1% = High dispute ratio (triggers review)
• 5% = Non-sustainable (likely termination)
• Stripe, PayPal, Square all monitor around 1%

Visa Dispute Monitoring Program (VDMP):

• 0.75% = Excessive dispute threshold
• Monitored monthly
• Penalties: $50+ per dispute after month 4

Visa Acquirer Monitoring Program (VAMP):

• 2.2% = Excessive (Oct 2025 - Mar 2026)
• 0.9% = Excessive (Apr 2026 onward)
• Minimum: 1,500 disputes/month
• Formula: (Fraud + Disputes) / Settled Transactions
• Penalties: $10 per disputed transaction
• Note: VAMP is more complex—see our detailed VAMP guide

Mastercard Programs:

• ECM (Excessive Chargeback Merchant): 1.5-2.99% with 100-299 disputes
• HECM (High Excessive Chargeback): 3%+ with 300+ disputes
• Penalties: Starting at $1,000/month from month 2

Two Different Measurements

Stripe tracks disputes two ways:

1. Dispute Activity (Card networks use this)

• Disputes received this month / Payments this month
• Used for monitoring program thresholds

2. Dispute Rate (More accurate for your business)

• Disputes on charges made this month / Payments this month
• Better for identifying problem transactions
• Can change for up to 120 days (dispute window)

What Happens at Each Threshold

At 0.75% (VDMP):

• Month 1-4: Monitoring period, no fines
• Month 5-9: $50 per dispute
• Month 10+: $50 per dispute + potential $25,000 review fee

At 1% (Payment Gateway):

• Account review initiated
• Questions about business model
• Potential warnings
• Possible reserve requirements (10-20% of volume)

At 2.2%/0.9% (VAMP):

• $10 per disputed transaction
• Minimum 1,500 disputes to qualify
• Acquirer (Stripe, PayPal) gets fined, may pass to you

At 1.5%+ (Mastercard ECM):

• $1,000+ monthly fines starting month 2
• 100-299 dispute minimum

At 3%+ (Mastercard HECM):

• $1,000+ monthly fines
• 300+ dispute minimum
• Serious termination risk

Eventually at any high threshold:

• Account termination
• MATCH list placement (makes getting new processor nearly impossible)
• 180-day fund hold

The Practical Safe Zone

For most merchants:

• Stay below 0.6% to avoid all monitoring programs
• If you hit 0.75%, immediate action needed
• At 1%, payment gateway will intervene
• Above 1.5%, you're in crisis mode

Quick calculation:

• 1,000 transactions/month → Keep disputes under 6
• 5,000 transactions/month → Keep disputes under 30
• 10,000 transactions/month → Keep disputes under 60

Learn more about managing dispute ratios in our guide: Understanding Dispute Ratios and Risks

When Stripe Makes Sense (and When It Doesn't)

Stripe isn't right for everyone. Here's when it's the best choice and when you should look elsewhere.

Stripe Is Best For:

✅ SaaS and Subscription Businesses

• Best recurring billing infrastructure
• Built-in dunning management
• Automatic retry logic
• Revenue recognition tools

✅ International Operations

• Supports 135+ currencies
• Local payment methods
• Easy multi-currency settlement
• Global compliance built-in

✅ Developer-Heavy Teams

• Exceptional API documentation
• Flexible customization
• Extensive integrations
• Webhook reliability

✅ Complex Billing Models

• Usage-based pricing
• Tiered subscriptions
• Multiple products
• Custom plans

✅ Growing Businesses That Need Scaling

• No contract lock-in
• Scales from $0 to $billions
• Advanced features available when ready
• Comprehensive analytics

Skip Stripe If:

❌ You Have High Dispute Rates (>1%)

• Stripe's $30 per lost dispute adds up fast
• Square's $0 chargeback fee saves thousands
• PayPal's Seller Protection can waive fees

❌ Simple Retail/In-Person Sales

• Square offers better POS hardware
• Simpler interface for retail staff
• Lower processing fees for in-person

❌ Budget-Conscious with Low Volume

• PayPal has lower base rates (2.29% vs 2.9%)
• Square's flat rate might be cheaper
• Stripe's advantages don't justify cost at low volume

❌ High Physical Goods Returns

• PayPal Seller Protection helps more
• Square's dispute handling simpler
• Stripe treats returns as standard disputes

❌ Need Phone Support

• Stripe primarily email support
• Square and PayPal offer phone lines
• Response times can be 24-48 hours

Break-Even Analysis

When does Stripe's higher processing fee become worth it?

Monthly volume needed to justify Stripe:

• If you use advanced features: Immediate
• If you're international: Immediate
• If you're just processing cards: $50,000+/month
• If you have high disputes: Reconsider

The 0.6% difference:

Stripe (2.9%) vs PayPal (2.29%) = 0.61% difference

• On $100,000/month = $610 extra cost for Stripe
• On $25,000/month = $152 extra cost for Stripe

Are Stripe's features worth $152-$610/month for your business? That's the question.

How to Calculate Your True Stripe Chargeback Cost

Here's a simple formula to understand what chargebacks actually cost you with Stripe:

Basic Formula

Per Chargeback Cost = Standard Fee + (Counter Fee × Fight Rate) + (Transaction Amount × Loss Rate)

Where:

• Standard Fee = $15 (or your country's fee)
• Counter Fee = $15 if you fight, $0 if you accept
• Fight Rate = % of chargebacks you contest
• Loss Rate = % of disputes you lose

Example Calculations

Scenario 1: Accept All Disputes

Fight Rate = 0%

10 chargebacks × $100 average

Cost = $15 × 10 = $150 in fees

+ $1,000 in refunds

= $1,150 total

Scenario 2: Fight All, Win 60%

Fight Rate = 100%

Loss Rate = 40%

10 chargebacks × $100 average

Fees:

• Standard: $15 × 10 = $150
• Counter: $15 × 10 = $150
• Counter refunds (wins): -$90 (6 × $15)
• Net fees: $210

Refunds:

• Lost disputes: $400 (4 × $100)

Total cost = $610

Scenario 3: Fight Selectively, Win 80%

Fight 5 best cases of 10

Loss Rate = 20%

10 chargebacks × $100 average

Fees:

• Standard: $15 × 10 = $150
• Counter: $15 × 5 = $75
• Counter refunds: -$60 (4 wins × $15)
• Net fees: $165

Refunds:

• Accept 5: $500
• Lost 1 fight: $100
• Total refunds: $600

Total cost = $765

Your Custom Calculator

Fill in your numbers:

Monthly chargebacks: _______

Average transaction: $_______

Disputes you fight: _______%

Your win rate: _______%

Calculation:

Standard fees = Chargebacks × $15 = $_______

Counter fees = (Chargebacks × Fight %) × $15 = $_______

Counter refunds = (Counter fees × Win %) × -1 = $_______

Refunds = (Chargebacks × Avg Transaction × Loss %) = $_______

MONTHLY COST = $_______

ANNUAL COST = $_______ × 12 = $_______

The Processing Fee Factor

Don't forget: Stripe keeps the processing fee even when you win.

Original transaction processing fee is never refunded:

$100 transaction:

• Processing fee: $3.20 (2.9% + $0.30)
• Win the dispute: Get $100 back
• Never get back: $3.20

True cost of winning: $15 standard fee + $3.20 processing = $18.20

Action Plan: Choosing the Right Processor for Your Dispute Rate

Here's a decision framework based on your actual metrics:

Step 1: Calculate Your Current Dispute Rate

Last 3 months:

Total payments: _______

Total disputes: _______

Dispute rate: _______ ÷ _______ × 100 = _______%

Step 2: Match Your Profile

If Dispute Rate < 0.5% (Excellent)

→ Stripe makes sense

• Take advantage of advanced features
• Small dispute costs won't hurt
• Focus on growth, not fees

If Dispute Rate 0.5% - 1.0% (Good)

→ Depends on volume

• Under $50k/month: Consider Square or PayPal
• Over $50k/month: Stripe if you need features
• High physical goods: PayPal with Seller Protection

If Dispute Rate 1.0% - 1.5% (Warning Zone)

→ Square or PayPal

• Square: $0 chargeback fees save significantly
• PayPal: Seller Protection essential
• Stripe: Only if disputes are unwinnable fraud

If Dispute Rate > 1.5% (Critical)

→ Major changes needed

• Processor choice won't solve this
• Risk of account termination across ALL processors
• Focus on dispute prevention first
• Consider high-risk processors

Step 3: Run the Numbers

Monthly Chargeback Cost Comparison:

Your monthly volume: $____________

Your monthly disputes: ____________

Your average transaction: $____________

Stripe:

Processing: Volume × 2.9% + (Transactions × $0.30) = $_______

Disputes: Disputes × $30 (if fight & lose) = $_______

Total: $_______

PayPal:

Processing: Volume × 2.29% + (Transactions × $0.09) = $_______

Disputes: Disputes × $8-16 = $_______

With Seller Protection: $0 dispute fees

Total: $_______

Square:

Processing: Volume × 2.6% + (Transactions × $0.10) = $_______

Disputes: $0

Total: $_______

Step 4: Factor in Non-Price Considerations

Some things matter more than fees:

Choose Stripe if you need:

• Subscription billing
• International expansion
• Developer customization
• Usage-based pricing
• Advanced fraud tools

Choose PayPal if you have:

• Physical product shipping
• Ability to meet Seller Protection requirements
• Customers who prefer PayPal
• Lower technical requirements

Choose Square if you run:

• Retail/in-person sales
• Simple online store
• High dispute rate
• Small team without developers

Step 5: Make the Switch (or Stay)

Switching makes sense when:

• You'll save >$500/month in fees
• Your dispute rate changed significantly
• You've outgrown current processor capabilities
• You're entering new markets

Stay put if:

• Difference is <$200/month
• You have complex integrations
• Current processor meets needs
• Switching costs exceed 6-month savings

The Bottom Line

Stripe's chargeback fees changed significantly in 2025, and understanding the new structure is essential for managing costs:

• Standard dispute fee: $15 (non-refundable except Mexico)
• Counter dispute fee: $15 additional when you fight (refundable if you win)
• Smart Disputes: $0 counter fee but 30% of recovery (rarely worth it for >$100 transactions)

For most businesses:

• Low disputes (<0.5%): Stripe's features justify the cost
• Moderate disputes (0.5-1.0%): Square saves you chargeback fees
• High disputes (>1.0%): PayPal Seller Protection is your best bet

The right processor depends on your specific situation: volume, dispute rate, business model, and technical needs. Run the numbers for your actual metrics, and the answer becomes clear.

Remember: Processor fees matter, but staying below multiple dispute thresholds matters more. Payment gateways watch at 1%, VDMP at 0.75%, and VAMP at 0.9% (from April 2026). Whatever processor you choose, invest in dispute prevention. The cheapest chargeback is the one that never happens.