Mastercard Chargeback Fees

Mastercard chargeback fees are charges imposed on merchants when a chargeback is filed against them. These fees are designed to cover the administrative costs of processing the chargeback and are separate from the refunded transaction amount. The fee structure varies based on the merchant's chargeback ratios, with higher ratios potentially leading to additional penalties, such as enrollment in Mastercard’s Excessive Chargeback Program. Managing chargebacks effectively is essential for merchants to reduce financial losses, avoid penalties, and maintain their standing with payment networks.