BlocklyFraud cost calculator for Shopify
Estimate what fraud chargebacks really cost your store. Adjust the defaults to your own numbers — everything is calculated in your browser.
- True cost per fraud chargeback: $78 (goods $32, shipping $8, fee $25, staff $13)
- Revenue reversed each month: $480
- Fraud cost as share of revenue: 0.39%
- Fraud chargeback ratio: 0.40%
How the fraud cost is calculated
Cost per fraud chargeback = product cost + shipping + chargeback fee + staff time. Monthly fraud cost is that figure multiplied by your fraud chargebacks per month, and the yearly figure multiplies it by 12.
Example: on an $80 order with 40% product cost, $8 shipping, a $25 fee and 30 minutes of staff time at $25/hour, one fraud chargeback costs about $78 — on top of the $80 of revenue that is reversed.
Using the result
Compare the yearly cost with what prevention costs you. If blocking high-risk traffic stops even a share of these chargebacks, the saving usually outweighs a fraud app subscription — as long as your rules do not turn away real customers.
Frequently asked questions
How much does a fraudulent order really cost?
More than the order value suggests. The payment is reversed, the goods and shipping are already spent, you pay a chargeback fee, and staff spend time on the case. Add those up to get the true cost per fraud chargeback.
How much is a chargeback fee?
It depends on your payment provider, and it is often in the $15–$40 range per chargeback. Check your provider's fee schedule and enter your own figure in the calculator.
Is the order value lost on top of the goods?
The order value is reversed, so you never keep that revenue. Compared with never making the sale, your cash loss is the goods and shipping you already paid for, plus the chargeback fee and staff time — which is what the calculator totals.
Does this include false declines?
No. Legitimate orders blocked by over-strict fraud rules are a separate cost. Measure them by tracking checkout conversion and "my card was declined" complaints before and after rule changes.
Lower the number, not just measure it
Blockly Fraud Filter blocks risky IPs, VPNs, bots and fraud orders before they turn into chargebacks. Free plan available.