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Is there no way to get Stripe to automatically refund all chargebacks/disputes? What if you're only getting a 5% fraud rate for something cheap and you want to
by gary_0 4y ago
Is there no way to get Stripe to automatically refund all chargebacks/disputes? What if you're only getting a 5% fraud rate for something cheap and you want to just eat the loss and not have to manually deal with disputes? Or if you're selling something like a premium online account, you can just disable the user's account automatically if they dispute the charge.
- spinlock 4y ago5% is huge. Like, ban your business from taking credit cards huge.
- Brystephor 4y agoYep. Anything greater than 1% is leading to trouble such as huge fees or being kicked off a card network.
- gary_0 4y agoSo you're saying all I need to do to knock a business offline is spam it with enough fraudulent CC numbers?
- jacobolus 4y agoYes you might be able to do that, at the risk of some personal liability because this is illegal. It’s also grossly unethical. If your fraud has a large enough monetary value, large enough scale, or you work with another person on it, you can get hit with a serious felony charge and end up in prison for a few years. Disclaimer: I am not a lawyer or expert on credit card fraud.
- Kamq 4y agoI think people don't realize how much of the economy relies on agreements to not be a piece of shit. Sort of like the highway system relies on an agreement not to play bumper-cars. There's nothing actually stopping anyone.
- jolux 4y ago> There's nothing actually stopping anyone. Self-preservation.
- deleted 4y ago[deleted]
- kelseyfrog 4y agoWe're actually working to provide this functionality as a service but it's currently stealth so I can't get into much more detail.
- herbst 4y agoThis is exactly the big issue no one is talking about. We are putting more and more pseudo security in customer protection but as a seller I am always in constant danger. A chargeback with stripe costs like $15 for the seller. Even if the charge was only $1.5. Imagine the monetary problems you could create and the seller has no other way than to pay and hope to not get banned.
- franga2000 4y agoYup, that's an attack that exists and is used regularly. It's not trivial to pull off, but is easy/accessible enough that competitors will sometimes do this to each other's web shops (I've heard of two cases of this just in last 3 years and that's in a city of only 300k people).
- pardon_me 4y agoI have seen a business run with this dealing with mobile phones targeted by organised fraudsters. Moving "too fast" to notice and whoops profit is £0.2m not £3m.
- joshmn 4y ago> What if you're only getting a 5% fraud rate for something cheap Something cheap turns into a $15 dispute fee.
- zrail 4y agoDisputes automatically refund the amount disputed plus the fee. The onus is on the merchant to fight the dispute and claw the money back. (Disclaimer: I used to work at Stripe on the dispute resolution team. I no longer work at Stripe.)
- franga2000 4y agoThis is another case of the old assumption that businesses have more resources than their customers. It's something everyone in the financial/banking sector seems to assume and it drives me crazy. I run a nonprofit with less than 5000€ income yearly and a handful of volunteers. We have less time and money than one average person who wants to buy something from us or donate. If we got hit by a chargeback storm, we'd go bankrupt in a week.