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I moved out of Stripe because stripe charges $15 for charge backs for my product worth $10. The dispute resolution mechanism sucks and it almost all the time fa

I moved out of Stripe because stripe charges $15 for charge backs for my product worth $10. The dispute resolution mechanism sucks and it almost all the time favors the customer and stripe is US only. My product is worldwide.

posguy 9y ago
Yeah, Stripe only gets so much say over chargebacks with their platform provider and the cardholder's bank, the only platform that I've seen chargebacks successfully fought & won on is Tsys, its always a loser on First Data. That being said, $15 is a low chargeback fee (damn close to cost the issuing bank & platform charge), generally you'll see a $25 to $30 chargeback fee with a $20 to $75 retrieval fee.
- daeken 9y ago
  I had two chargebacks on my service using Stripe (https://breaker101.com/ https://breaker101.com/ </shameless-plug>), and successfully fought both of them. Just throwing that out there.
- throw2bit 9y ago
  how does paypal handle these ? When there is a dispute, I refund the amount and thats it. Paypal bears the chargeback and Stripe passes it to the merchants ?
  - simonk 9y ago
    Paypal charges a $20 chargeback fee on disputes with a credit card company.
  - shmolyneaux 9y ago
    Software Engineering Daily had an episode[0] on fraud detection at stripe using machine learning. If you're interested it provides quite a bit of background information. [0]: https://softwareengineeringdaily.com/2017/03/17/stripe-machine-learning-with-michael-manapat/ https://softwareengineeringdaily.com/2017/03/17/stripe-machi...
sonyachiko 9y ago
I use Stripe from Japan and it really sucks when it comes to chargebacks. I have won like 2 of 30 cases. I provide customer's ID, shipping labels, tracking info and still lose. I had one friendly fraud case, when a customer was using both Stripe and PayPal. Later the customer opened disputes for every payment made within 3 months. It was like dozens of disputes on both PayPal and Stripe. I have won all on PayPal and lost all on Stripe. Those two cases I won on Stripe was like the acquiring bank started the chargeback without notifying the client. The client worked with us, the acquiring bank admitted the mistake and still we had to fight to convince Stripe that we won the dispute. I strongly believe that they just automatically process the chargeback forms and don't give a thing about winning it. Not to mention that they charge you even if you win a dispute.

posguy 9y ago

Yeah, Stripe only gets so much say over chargebacks with their platform provider and the cardholder's bank, the only platform that I've seen chargebacks successfully fought & won on is Tsys, its always a loser on First Data. That being said, $15 is a low chargeback fee (damn close to cost the issuing bank & platform charge), generally you'll see a $25 to $30 chargeback fee with a $20 to $75 retrieval fee.

daeken 9y ago
I had two chargebacks on my service using Stripe (https://breaker101.com/ https://breaker101.com/ </shameless-plug>), and successfully fought both of them. Just throwing that out there.
throw2bit 9y ago
how does paypal handle these ? When there is a dispute, I refund the amount and thats it. Paypal bears the chargeback and Stripe passes it to the merchants ?
- simonk 9y ago
  Paypal charges a $20 chargeback fee on disputes with a credit card company.
- shmolyneaux 9y ago
  Software Engineering Daily had an episode[0] on fraud detection at stripe using machine learning. If you're interested it provides quite a bit of background information. [0]: https://softwareengineeringdaily.com/2017/03/17/stripe-machine-learning-with-michael-manapat/ https://softwareengineeringdaily.com/2017/03/17/stripe-machi...

sonyachiko 9y ago

I use Stripe from Japan and it really sucks when it comes to chargebacks. I have won like 2 of 30 cases. I provide customer's ID, shipping labels, tracking info and still lose. I had one friendly fraud case, when a customer was using both Stripe and PayPal. Later the customer opened disputes for every payment made within 3 months. It was like dozens of disputes on both PayPal and Stripe. I have won all on PayPal and lost all on Stripe. Those two cases I won on Stripe was like the acquiring bank started the chargeback without notifying the client. The client worked with us, the acquiring bank admitted the mistake and still we had to fight to convince Stripe that we won the dispute. I strongly believe that they just automatically process the chargeback forms and don't give a thing about winning it. Not to mention that they charge you even if you win a dispute.