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I can confirm that it's very hard to win a dispute if using Stripe as a merchant with a card-not-present transaction. However...my experience has been that's t
by Lazare 9y ago
I can confirm that it's very hard to win a dispute if using Stripe as a merchant with a card-not-present transaction. However...my experience has been that's true of all payment processors, including Paypal, and I have heard a lot of horror stories about Paypal in specific.
For example, Paypal's seller protection explicitly does not cover you as a seller if the buyer claims the item was not as described; that leads to the famous brick fraud which has been going on for well over a decade. Eg https://ask.metafilter.com/77638/Can-I-trust-PayPals-seller-protection-If-not-what-can-go-wrong#1208841 https://ask.metafilter.com/77638/Can-I-trust-PayPals-seller-... or https://news.ycombinator.com/item?id=13180885 https://news.ycombinator.com/item?id=13180885.
> Stripe will almost always side with the customer even though you have evidence to prove you were the one scammed. I hope you never have to experience what it is like because you can't even get hold of someone over the phone when that happens.
There are hundreds if not thousands of stories of people having this issue with Paypal, so... :)
- neya 9y ago> For example, Paypal's seller protection explicitly does not cover you as a seller if the buyer claims the item was not as described My experience (I sell Bamboo chairs, ha!) is that if you can prove you have a detailed description of the item in place that specifies what is included, what isn't, what's the color, texture and everything else in sufficient detail, you can win the case. In my case I do all that plus I display my terms and conditions during checkout, so there were maybe 3 times this happened to me and I won all of these cases. Easiest way to avoid this? Block payments/checkouts from demographics notorious of these practices - China, Pakistan, Africa, Egypt, etc. Your demographics may vary though, based on your product, your target audience, etc. Use your analytics systems to find out which ones give you a lot of high pageviews:bounce ratio and block them, especially if there are suspicious orders from them (10000 orders of a toothbrush without any prior emails, etc for example). I use my own e-commerce platform (because Shopify sucks) to detect and trigger fraud systems. If something looks like even a 10% suspicious transaction to me, it will be flagged and pass through a manual order fulfilment. I know, I make it sound so easy, but this will probably take you atleast half a year to fine tune and you should be good. > There are hundreds if not thousands of stories of people having this issue with Paypal, so... :) Once again, I'm not siding with PayPal, but I think this could be because they've been much longer in the business than Stripe?
- kombucha2 9y agoCan attest that this is sound advice. I really like Paypal (though I readily admit they are often a bad corporate actor) but I just wish their fees weren't so ridiculous.
- neya 9y agoThank you, and agree on the PayPal fees being on the higher side.
- em3rgent0rdr 9y ago> "Easiest way to avoid this? Block payments/checkouts from demographics notorious of these practices - China, Pakistan, Africa, Egypt, etc." These types of blocks by country don't seem right. Why no just block by behavior?