Complete Transparency and Documentation for Chargeback Process and $15 Dispute Fee

As a merchant using Lemon Squeezy, I need complete transparency about the chargeback dispute process and the $15 dispute fee that is deducted from payouts.

CURRENT DOCUMENTATION GAP
The documentation states:
“In most cases, we will offer a full refund on your behalf and deduct the refunded amount (minus our platform fee) plus a $15 dispute fee from your next payout.”

However, critical information is missing.

WHAT NEEDS TO BE DOCUMENTED

1) $15 DISPUTE FEE BREAKDOWN

• What specifically does this fee cover?
• Is it a pass-through cost from payment processors, or a Lemon Squeezy charge?
• Why is it $15 specifically?
• What costs does it represent (e.g., human review, automated processing, administrative handling, other expenses)?

2) CHARGEBACK PROCESS TRANSPARENCY

• When is the supplier/merchant notified about a chargeback?
• What timeline exists between chargeback initiation and refund issuance?
• Is the process fully automated, or does it involve human review?

3) SUPPLIER RIGHTS AND PARTICIPATION

• Can suppliers provide evidence to contest chargebacks?
• What documentation can suppliers submit (e.g., proof of delivery, terms of service, transaction records)?
• How can suppliers participate in the dispute resolution process?
• What specific information does Lemon Squeezy provide to payment providers when “making a case on our behalf”?

4) PROCESS DOCUMENTATION (END-TO-END)

• Step-by-step explanation of what happens when a chargeback occurs
• Clear timeline from chargeback initiation to resolution
• Explanation of supplier involvement (if any) at each stage

WHY THIS MATTERS

• Fee transparency is likely required under consumer protection and business regulations in many jurisdictions.
• Merchants need to understand what they’re paying for.
• The Merchant of Record model shouldn’t mean zero supplier involvement in disputes that affect their payouts.
• Informed decision-making requires understanding the full costs and operational process of doing business on the platform.

STATEMENT THAT NEEDS EXPANSION
The documentation also states:
“When a chargeback does occur, we will provide as much information as we can to the payment provider to make a case on your behalf. However, this is as much as we can legally do.”

This should be expanded to explain:

• What “as much information as we can” actually includes
• How suppliers can contribute evidence or context to support that case

REQUESTED OUTCOME
Comprehensive public documentation covering the chargeback process, fee justification/breakdown, and supplier rights/participation.