Digital Payment Fraud Calculator

Fraud loss estimation from transaction volume and type.

Monthly volume ($)

Avg transaction ($)

Fraud rate (basis points)

Chargeback fee ($)

True fraud cost multiplier

Fraud tool cost ($/mo)

Tool detection rate (%)

False positive rate (%)

Tab to move between fields

True monthly fraud cost

$1,470.00

≈ 11 pairs of sneakers

Monthly savings with tool

-$10,853.31

Fraud tool ROI (%)-542.67%

Gross fraud loss$500.00

Fraudulent transactions8

Chargeback fees$153.85

Residual fraud (with tool)$441.00

False positive revenue loss$9,990.00

How to Use This Calculator

How the result changes with Monthly volume ($)

Monthly volume ($): Total dollar amount of transactions processed per month.
Avg transaction ($): Average dollar amount per transaction.
Fraud rate (basis points): Fraud rate in basis points. 10 bps = 0.1% of transactions. E-commerce average is 10-20 bps.
Chargeback fee ($): Fee charged per chargeback by the payment processor (typically $15-25).
True fraud cost multiplier: Total cost per $1 of fraud (LexisNexis avg: $2.94). Includes lost goods, shipping, fees, and labor.
Fraud tool cost ($/mo): Monthly cost of fraud detection/prevention tool (e.g., Sift, Riskified, Forter).
Tool detection rate (%): Percentage of fraudulent transactions the tool successfully detects and blocks.
False positive rate (%): Percentage of legitimate transactions incorrectly flagged as fraud (customer friction and lost revenue).

True monthly fraud cost: Full cost of fraud including lost merchandise, fees, and operational costs (without prevention).
Monthly savings with tool: Net savings from using the fraud prevention tool (fraud reduction minus tool cost and false positives).
Fraud tool ROI (%): Return on investment for the fraud prevention tool.
Gross fraud loss: Direct dollar value of fraudulent transactions per month.
Fraudulent transactions: Estimated number of fraudulent transactions per month.
Chargeback fees: Total chargeback fees from fraudulent transactions.
Residual fraud (with tool): Fraud losses that remain after the prevention tool catches what it can.
False positive revenue loss: Revenue lost from legitimate orders incorrectly blocked by the fraud tool.

Identify Input Parameters
4 parameters
Monthly volume ($) = 500000, Avg transaction ($) = 65, Fraud rate (basis points) = 10, Chargeback fee ($) = 20 = 8 input(s) provided
Calculate True monthly fraud cost
True monthly fraud cost = grossFraudLoss * fraudMultiplier
1470 = $1,470
Calculate Monthly savings with tool
Monthly savings with tool = totalCostWithoutTool - totalCostWithTool
-10853.31 = $-10,853.31
Calculate Fraud tool ROI
Fraud tool ROI = fraudToolMonthlyCost > 0
-542.67 = -542.67%
Calculate Gross fraud loss
Gross fraud loss = fraudulentTransactions * avgTransactionSize
500 = $500