As of April 1, 2025, Visa has rolled out significant changes to its dispute-related fees in the U.S. and Canada. These fees, while charged to acquirers, are typically passed on to merchants, making it essential for businesses to understand the new structure to safeguard their profits.
What’s Changing?
Visa’s updated fees affect dispute acceptance and response processes. Merchants must accept or respond to chargebacks within 30 days of the dispute date. Failure to act results in an expired dispute, triggering hefty penalties. Even within the 30-day window, fees escalate based on response time, and most have increased compared to the previous structure. Notably, the no-fee window for accepting disputes has shrunk from 20 days to 10 days.
New Fee Breakdown
Below is a comparison of the old and new fee structures for acquirers (in USD), applicable in the U.S. and Canada.
Visa Dispute Acceptance Fees
|
Time Since Dispute
|
Previous Fee
|
New Fee
|
|---|---|---|
|
10 days or less
|
None
|
None
|
|
11-15 days
|
None
|
$0.50
|
|
16-20 days
|
None
|
$1.00
|
|
21-25 days
|
$0.50
|
$2.00
|
|
26-30 days
|
$0.75
|
$3.00
|
|
Expired
|
$1.00
|
$7.00
|
|
Expired (Pre-arbitration)
|
$1.00
|
$15.00
|
Visa Dispute Response Fees
|
Time Since Dispute
|
Previous Fee
|
New Fee
|
|---|---|---|
|
10 days or less
|
None
|
$1.05
|
|
11-15 days
|
None
|
$1.50
|
|
16-20 days
|
None
|
$2.00
|
|
21-25 days
|
$1.75
|
$3.00
|
|
26-30 days
|
$2.15
|
$4.00
|
Additionally, arbitration fees have risen from $500 to $600 for the losing party, and a new $15 fee applies for expired pre-arbitration disputes. These changes hit hardest for merchants with delayed responses. For instance, a merchant handling 500 disputes in the 26-30 day window now faces $2,000 in response fees—almost twice the cost of faster action.
Why It Matters for Merchants
The new fee structure pressures merchants to act swiftly. Delays can turn minor disputes into costly expenses, especially for businesses managing high dispute volumes. Merchants must now balance the dispute amount, the likelihood of winning, and rising fees when deciding whether to contest a chargeback. For low-value or valid disputes, quick acceptance may be more cost-effective than gathering evidence.
Coordination with acquirers is also critical. Delays in acquirer processing can push responses past fee thresholds, even if merchants act promptly internally. Merchants using third-party dispute management services should align strategies to prioritize speed.
Steps to Adapt
-
Consult Your Acquirer: Discuss how long it takes for your acquirer to submit responses to Visa’s system (VROL). This will help you plan faster internal timelines.
-
Review Your Process: Audit your dispute workflow. If you prioritize disputes by value rather than timing, you may be incurring unnecessary fees. Track response times from notification to resolution.
-
Leverage Technology: Automate dispute handling or partner with chargeback management experts. Advanced tools can assess dispute validity quickly, allowing you to accept low-win-probability cases early and focus on high-value disputes.
-
Strategize Responses: Reserve extra time for high-value disputes with strong evidence, while addressing straightforward cases within 10 days to avoid fees.
Key Takeaways
Visa’s 2025 dispute fee changes make timely chargeback responses more critical than ever. Slow processes that were once inconvenient are now expensive, with fees escalating rapidly after 10 days. Merchants who adopt streamlined workflows, prioritize disputes by deadline, and use data-driven tools will minimize costs and protect their margins. Proactively adapting to these changes is essential for staying financially competitive.
