Calculator
Lost-dispute exposure calculator for destination charges
A lost dispute on a destination charge debits the platform for the full amount plus the dispute fee while the connected account retains its transfer. Multiply that shape across annual dispute volume and the exposure figure usually surprises people who thought disputes were "a seller problem". Five inputs produce the band.
Inputs and formula
Monthly orders · average charge · platform fee % · dispute rate % · estimated loss rate %. Annual exposure ≈ orders × avg × 12 × dispute% × loss% × (1 − fee%) plus dispute fees on lost cases. Recoverable portion excludes the fee — network rules keep that cost platform-side always.
- Disputes/year
- 90
- Lost
- 54
- Transfer-side exposure
- ~$5.5k/yr
- Dispute fees (unrecoverable)
- $810/yr
Reading the result
Exposure is not destiny: recoverability depends on payout timing versus detection latency, and representation win rates shift the concede-versus-fight line. The number prices the programme; playbooks determine realised recovery.
Direct-charge note
On direct charges the debit lands seller-side and this calculator overstates platform exposure accordingly — check charge type before quoting results upward.
Common questions
Is loss rate knowable in advance?
Approximated from reason-code history; fraud codes run low, documentation-backed codes higher. History beats intuition here.
Does the $15 fee ever get recovered?
No — network rules make dispute fees non-transferable regardless of clawback success.