Is there a chargeback penalty applied by either Square or CC company in case of dispute or return?

[moditoys]

Is there a charge back penalty applied by either Square or CC company in case of dispute or return?

Here is a scenario:  I sell a toy on my site for $15 + tax + shipping.  Customer either wants to return or dispute the CC charge.  In this case, does Square apply any charge back fee to me?  I have heard that if I process my CC payments via Clover, CC company applies a $25 fee for any dispute or return/refund on CC transactions.  Thanks in advance for your help.

[VanKalkerFarms · Accepted solution]

No, Square does not charge a fee for a chargeback, but as you correctly pointed out many other companies do including PayPal for $20.  https://squareup.com/townsquare/what-is-a-chargeback-what-makes-it-happen#square-chargeback-fee

[Cghinkle]

But there is a penalty if you received a payment and paid the Square fee - so the deposit into the bank is less than the amount paid by the customer.  When the customer receives the chargeback, the amount is the full amount paid by the customer.   The Square fee amount is taken out of your bank account and you lose that fee amount a second time.