Stripe is making a major change to how it charges merchants for handling chargebacks. Starting Jun 17, 2025, a new $15 dispute counter fee will be added on top of the existing dispute fee when a merchant counters a chargeback. While this fee is refundable if the merchant wins, it adds a new layer of cost for every dispute.

Alongside this update, Stripe has rolled out Smart Disputes, an AI-powered tool that automates the chargeback response process – and waives the new counter fee – but introduces a 30% success fee on recovered amounts. In this blog, you’ll get a full breakdown of Stripe’s new dispute fee structure, how it could impact your bottom line, and how to choose between Smart Disputes and external solutions like Chargeflow.
Are you wondering if Stripe Smart Disputes is worth the 30% success fee? Or if third-party solutions like Chargeflow offer better ROI? This guide breaks it down.

For more details, read the official Stripe announcement. 

New Stripe Dispute Fees Explained

What is the New Stripe Dispute Counter Fee?

• This fee applies only when a merchant counters a dispute.
• It is charged in addition to the standard dispute fee.
• The counter fee is refunded if the dispute is won; if lost, it is not.
• The standard dispute receipt fee remains unchanged and is always charged when a dispute occurs, regardless of the outcome. 

📩 Stripe’s Official Email Confirmation

How Much Will This Cost (Fees by Country & Currency)

Click here for country-specific dispute fees.

• United States: $15 dispute fee + $15 counter fee
• United Kingdom: £20 dispute fee + £20 counter fee
• EU Countries: €20 dispute fee + €20 counter fee
• Canada: $15 CAD Dispute fee + $15 CAD counter fee
• Australia: $25 AUD dispute fee + $25 AUD counter fee
• India: ₹1,000 INR dispute fee + ₹1,000 INR counter fee
• Japan, Mexico, Thailand: No counter fee applies

Understanding the Total Cost per Dispute

If a merchant receives a dispute and chooses not to counter it, they will only be charged the standard dispute fee. However, they will also be charged the new dispute counter fee if they counter the dispute. 

‍Important Takeaways:

• If you win the dispute, the counter fee is refunded, but the standard dispute fee remains. 
• Both fees are applicable if you lose or win partially.
• Before responding to any disagreement, merchants should evaluate the risk.

Partial Wins: What Happens If Only Part of the Dispute is Won?

In some cases, a merchant may partially win a dispute, meaning they successfully recover a portion of the disputed amount but not the entire transaction. The counter fee and the dispute receipt fee, however, will still be fully applicable.

Example:

• A consumer disputes a $200 transaction.
• The merchant proves $50 worth of goods were delivered and wins that portion.
• The issuer refunds $50, but the merchant still pays the full $15 dispute fee and $15 counter fee, totaling $30, even with a partial win.

More on partial dispute wins.

Tools to Help Offset Dispute Costs

Smart Disputes: Stripe’s AI-Powered Fee-Reduction Solution

Stripe has introduced Smart Disputes as an AI-powered alternative to manual dispute handling. It automatically submits evidence on behalf of merchants and waives the new counter fee, offering an automated path to resolution.

If the dispute is won using Smart Disputes, Stripe charges a 30% success fee on the recovered amount – this replaces the refunded counter fee model used in manual submissions.

If the dispute is lost, only the $15 dispute receipt fee applies, and no counter fee is charged. 

• If you lose the dispute, you pay only the $15 receipt fee.
• If you win, you pay 30% of the recovered amount as a success fee instead of a flat fee.

Key Benefits of Smart Disputes

• Reduces manual labor by automating dispute resolution.
• Increases win rates by optimizing evidence submission with AI.
• Reduces dispute expenses and waives the new dispute counter fee. 
• Helps businesses scale dispute resolution without increasing their workload. 

Limitations of Stripe Smart Disputes

• Limited data integration: No connection to communication tools or CRMs from third parties.
• Lack of control over evidence: Merchants have less control over the evidence that is submitted, reducing flexibility.
• Selective dispute handling: Only contests disputes Stripe’s AI deems winnable.
• Unclear success metrics: Stripe has not provided detailed data on win rates compared to third-party solutions.

Learn more about Smart Disputes.

When to Consider a Third-Party Dispute Solution

While Stripe’s Smart Disputes offers basic automation, some businesses may need more than basic functionality to protect revenue. Chargeflow offers a fully managed, AI-powered chargeback solution that improves win rates, eliminates manual effort, and integrates seamlessly with essential business tools.

Why Chargeflow is the Smarter Alternative to Stripe Smart Disputes

Stripe’s Smart Disputes is built for speed and convenience, but for high-value or complex disputes, a fully managed solution like Chargeflow offers better control, deeper integrations, and higher success rates. It is important to keep in mind that Stripe’s system may not counter every dispute and lacks access to external data like CRM records or customer communications. 

Why Chargeflow?

• Full automation with zero manual work
• Superior evidence collection from CRMs, emails, and customer interactions
• Higher win rates through AI-optimized strategies
• Custom solutions for subscription, SaaS, eCommerce, and high-ticket merchants
• Real-time transparency and reporting
• Ideal for high-value disputes where success directly impacts profitability

Stripe vs. Third-Party Chargeback Solutions: Which One Maximizes Your Revenue?

Stripe’s structure includes a $15 surcharge for using third-party providers. However, this additional fee may be a worthwhile trade-off if the win rate and recovered revenue are significantly higher.

‍Key Takeaways:

• Using third-party providers increases the cost of external solutions since Stripe charges an additional $15 for each dispute.
• Although Smart Disputes automates some parts of the dispute resolution process, it does not integrate with other data or CRM, which could make cases weaker. 
• Chargeflow provides fully managed, AI-driven chargeback protection with stronger evidence collection and better win rates. 
• When selecting Stripe’s built-in solution, merchants must balance cost savings against the possibility of lost revenue from weaker disputes.

Learn more about Chargeflow.

Navigating These Changes: Choosing the Right Dispute Strategy

With Stripe’s new dispute counter fee and the introduction of Smart Disputes, merchants need to reassess their chargeback management strategies. The best approach depends on the business model, dispute volume, and win rate priorities. 

Final Considerations:

• If cost savings and basic automation are the priority, Stripe Smart Disputes may be sufficient.
• For businesses focused on maximizing win rates, protecting high-value transactions, or needing full evidence control, Chargeflow provides a more robust, AI-powered solution. 
• Review your dispute data and determine which solution aligns best with your profitability goals and risk tolerance.

Explore more on Stripe’s dispute policies here.