Chargeback rates: the 1% and 1.5% lines, and what each processor does

Shopify Payments

A chargeback costs a fee (US $15, UK £10, Canada $15, Australia $25), and winning it doesn't remove it from your chargeback rate (chargeback process).

Stores with a rate of 1.5% or more over 90 days can be enrolled in Shopify's network dispute resolution program: disputes are refunded before they become chargebacks, with no contest, at $15 each (US), and a 10% reserve applies. To leave it, the rate must stay under 1% for 30 days in a row (dispute resolution programs).

Whop

Every dispute debits the disputed amount and a $15 fee. Whop's early dispute alert costs $29 per alert and can refund a charge before it becomes a dispute; for new accounts Whop refunds alerted charges under $500 by default (manage disputes; fees).

Whop's payment-health page treats 1.5% as the line card networks care about, and high dispute rates can lead to reserves or suspension (payment health).

What keeps the rate down, on any processor

• Ship fast and send tracking with every order.
• Make refunds easy before a buyer goes to their bank.
• Use a clear name on the card statement and a reachable contact address.
• Plan for a reserve if you sell pre-orders or deliver slowly.

Where CheckoutSwitch fits

CheckoutSwitch gives your Shopify store a checkout page of its own. Shoppers pay inside Whop's payment box, into your own Whop account, and every payment becomes a paid Shopify order. Your theme, products and cart stay as they are.

Every payment is checked against its order every 15 minutes. If our plan ever stops, your store falls back to Shopify's own checkout with the same cart.

It costs $49 a month for your first store and $29 for each store after it, and 0% of your orders. Whop's own card fees (from 2.7% + $0.30 per domestic card) are paid to Whop, not to us. Your first store has 7 days free.

We make no promise about disputes: they are between you, the buyer's bank and Whop.