Payment fees
Refund fee loss calculator.
Enter an order amount, your fee and how many orders you refund. See the processing fee you lose on each refund and over a year.
When you refund a $50.00 order, the original $1.75 fee at 2.9% + $0.30 stays with the processor. At 400 orders a month and a 5% refund rate that is $35.00 a month, $420.00 a year, and fees equal 3.68% of the revenue you keep.
Your numbers
Result
Worked example
Average order $50.00, fee 2.9% + $0.30 = $1.75 (3.50% of the order). With 400 orders a month and 5% refunded, there are 20 refunds a month, so refund-related fee loss is 20 x $1.75 = $35.00 a month and $420.00 a year. Fees on all 400 orders are $700.00; revenue kept is 380 x $50.00 = $19,000.00, so fees are 3.68% of kept revenue, against 3.50% with no refunds.
How it works
Fee lost per refund = original order x percentage + fixed fee. Stripe's Canadian page (opened 2026-10-08) says there are no fees for issuing refunds, but the payment processing, Connect and currency conversion fees from the original transaction are not returned. PayPal Canada says the same for refunds of commercial transactions: no fee to refund, and the fees you originally paid are not returned.
The refunded revenue itself leaves your account too; this page isolates only the fee you cannot recover. Custom pricing can differ. For disputes that end in a chargeback instead of a refund, use the chargeback cost calculator.
Estimates only, from numbers you enter. Not legal, tax or financial advice. Rates and rules change: verify them with your provider.
Everything runs in your browser. Nothing you type is sent or stored.
Sources
- Pricing & Fees - Stripe (Canada) (opened 2026-10-08): no fees for issuing refunds, and fees from the original transaction are not returned.
- Fees | Merchant and Business | PayPal CA (opened 2026-10-08): refunds of commercial transactions carry no refund fee, but the fees originally paid are not returned.
FAQ
Does Stripe refund its processing fee?
The Canadian pricing page opened 2026-10-08 says fees for the original transaction are not returned when you refund, and that there is no fee for issuing the refund. Custom pricing may differ.
Does PayPal return the fee on a refund?
PayPal Canada's fee page says that if you refund a commercial transaction there are no fees to make the refund, but the fees you originally paid to receive the payment are not returned.
Does a partial refund return part of the fee?
PayPal's page says fees originally paid are not returned for partial refunds either. Confirm what your own provider does.
How can I reduce refund fee loss?
Reduce the refund rate with clearer product information, or consider whether a store credit, exchange or partial price adjustment suits the case. Compare options on the cost of the lost fee.
Is this accounting advice?
No. It is an estimate from the numbers you enter.