# Chargebacks Fee

<table><thead><tr><th width="154.458984375">Stage</th><th>Cost per Stage</th><th>Who Bears the Cost</th></tr></thead><tbody><tr><td>Initiation</td><td>No direct fee at this point</td><td>No cost yet; the process is initiated by the cardholder</td></tr><tr><td>Chargeback</td><td>Funds are reversed from the Merchant to the Issuer</td><td>Merchant</td></tr><tr><td>Representment</td><td>No fixed external fee in many cases, but can involve internal costs (time, staff)</td><td>Merchant</td></tr><tr><td>Pre-arbitration<br>(*optional)</td><td>No fee yet, but effort/costs increase</td><td>Merchant &#x26; Issuer</td></tr><tr><td>Arbitration</td><td>Card network arbitration fee: typically USD 500 or more, depending on card scheme (Visa, Mastercard, etc.)</td><td>The losing party pays the arbitration fee (usually the Merchant if they lose)</td></tr></tbody></table>
