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Clover Chargeback Fees: Why They're So High and How to Reduce Them

A single chargeback can cost you $25-100 in fees, plus the lost sale, plus the product. It feels like you're being punished twice. Understanding the chargeback system can help you fight back and prevent future losses.

Quick Fixes to Try Right Now

1

Understand Chargeback Costs

Chargeback fees typically include: processor fee ($15-25), card network fee ($10-20), and potential account review fees. High chargeback ratios can trigger additional monthly monitoring fees.

2

Fight Invalid Chargebacks

You can dispute chargebacks you believe are fraudulent or invalid. Gather evidence: delivery confirmation, customer communication, signed receipts. Respond within the deadline (usually 7-10 days).

3

Implement Prevention Measures

Use AVS (Address Verification), require CVV, get signatures for large purchases, and use clear billing descriptors. These reduce both legitimate and fraudulent chargebacks.

4

Negotiate Fee Reduction

If you have low chargeback rates overall, negotiate reduced chargeback fees. Some processors will lower fees for merchants who demonstrate good fraud prevention practices.

Still Having Issues? Compare Your Options

Feature Clover CapClover
Customer Support Long hold times, unresponsive Your assigned rep's direct line
Business Funding Limited or no options Up to $500,000
Approval Time Weeks or denied Same-day decisions
Hidden Fees Frequently reported Transparent pricing
Contract Terms Early termination fees Flexible terms

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Frequently Asked Questions

How much does Clover charge for chargebacks?
Clover processors typically charge $15-35 per chargeback. High-risk merchants may pay $50-100. These fees are separate from losing the transaction amount and are usually non-refundable even if you win the dispute.
Can I dispute chargeback fees?
You can dispute the underlying chargeback (and potentially recover the transaction amount), but the fee itself is usually non-refundable. However, some processors will waive fees if you successfully dispute and win.
What happens if I have too many chargebacks?
If your chargeback ratio exceeds 1% of transactions, you may face: monthly monitoring fees ($100-300), increased processing rates, reserve requirements, or account termination.
How can I prevent chargebacks?
Best practices include: clear billing descriptors, easy refund policies, delivery confirmation, AVS/CVV verification, responsive customer service, and fraud screening tools. Prevention is far cheaper than fighting chargebacks.