PayPal chargeback fee calculator.

The fees PayPal lists

PayPal's US merchant fees page lists a $20.00 chargeback fee, described as a settlement fee for credit and debit card transaction chargebacks that are not processed through a buyer's PayPal account or guest checkout. For payments made through the buyer's PayPal account or PayPal checkout, PayPal may instead charge a dispute fee when a buyer files a dispute claim or chargeback: $15.00 standard or $30.00 high volume. On refunds, the page says there is no fee to make the refund, but the fees you originally paid to receive the payment are not returned. Fees are assessed in the currency of the original transaction.

Fight or refund first?

Compared with a sale that was never disputed, a lost case costs the amount plus the fee, a won case costs the fee only (or nothing if your fee is refunded), and a proactive refund costs the amount but no dispute fee. Fighting is cheaper on average when your win rate is above fee / (amount + fee - fee paid when you win). With the fee not refunded that is simply fee / amount: 20% on a $100 case, 80% on a $25 case. So for small orders refunding the buyer is usually cheaper than a chargeback you might lose.

Worked example

A $100 card chargeback at a 40% win rate: losing costs $120, winning costs $20, so the expected cost is 0.4 x $20 + 0.6 x $120 = $80. Refunding first costs $100. Fighting beats refunding because 40% is above the 20% break-even. If you lose, you are also out the $20 goods, $5 shipping and $3.50 receiving fee already paid: $48.50 in cash beyond the reversed sale.

• PayPal's fee page does not say whether the fee comes back on a win, so that is a switch you set, default off.
• The refund option assumes the buyer drops the case when refunded and you do not recover the goods.
• Fee amounts are editable in case your agreement differs.

Last checked against the sources 2026-10-19. Sources: PayPal Merchant Fees (US) (chargeback fee, dispute fees, refund fee policy).

FAQ

How much is the PayPal chargeback fee?

PayPal's US merchant fees page lists a $20.00 chargeback fee for card chargebacks not processed through a buyer's PayPal account or guest checkout.

What is the PayPal dispute fee?

PayPal may charge a dispute fee when a buyer files a dispute claim or chargeback on a payment through the buyer's PayPal account: $15.00 standard or $30.00 high volume.

Does PayPal refund its fees when I refund a buyer?

No. The page says refunding is free to make, but the fees you originally paid to receive the payment are not returned.

Should I refund or fight a PayPal chargeback?

Fight when your realistic win rate is above fee / amount (when the fee is not refunded on a win). Below that, refunding first is cheaper on average.

Is the chargeback fee refunded if I win?

PayPal's fee page does not say. The calculator lets you choose, defaulting to not refunded so the estimate is not too optimistic.

What counts as a high volume dispute fee?

PayPal lists a higher $30.00 tier for high volume merchants. Check your account terms to see whether it applies to you.