Under what circumstances will Atwell Suites charge an excessive Chargeback fee?

According to the 2025 Atwell Suites Franchise Disclosure Document, an excessive Chargeback fee may be charged if the franchisee's Chargeback percentage for any line of business exceeds the estimated industry Chargeback percentage for that line of business. This fee is in addition to the standard Chargeback fees and any applicable Chargeback handling fees or fines. The estimated industry Chargeback percentage is subject to change by Atwell Suites to reflect changes reported by Visa, Mastercard, or Discover.

The Atwell Suites franchise agreement details how the Chargeback percentage is calculated. It is determined by the larger of two calculations: (a) the total Visa, Mastercard, and Discover Chargeback items in any line of business in any calendar month divided by the number of Visa, Mastercard, and Discover transactions in that line of business submitted that month, or (b) the total dollar amount of Visa, Mastercard, and Discover Chargebacks in any line of business received in any calendar month divided by the total dollar amount of your Visa, Mastercard, and Discover transactions in that line of business submitted in that month.

This means that if an Atwell Suites franchisee has a higher rate of Chargebacks compared to the industry average, they will incur additional fees for each Chargeback. Franchisees should, therefore, focus on minimizing Chargebacks through good customer service, accurate transaction processing, and fraud prevention measures to avoid these extra costs. It is also important to stay informed about any changes to the estimated industry Chargeback percentages, as these changes could impact whether or not a franchisee is subject to the excessive Chargeback fee.