Chargeback fees are the card clearing services way of discouraging chargebacks/disputes. They charge everybody them. The large banks put way more money through

Chargeback fees are the card clearing services way of discouraging chargebacks/disputes. They charge everybody them. The large banks put way more money through them than you're talking about, and they have fairly high write-off levels just because it's not worth raising a dispute unless you're damn sure the other party will be hit with the costs. A significant amount of the time when you call your provider about a dispute (fraud or non-fraud), they will just pay out of their own pocket rather than raise it with Visa/Mastercard/whomever, it's just not worth the risk of being hit with the fees. (Unless they decide it's your fault, in which case they'll tell you to suck it up.) (I am a developer on the disputes platform for a major bank)