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A dispute is not only for transactions you didn't perform, it is also for situations like not getting the purchased product or similar. So 3DSecure will signifi

A dispute is not only for transactions you didn't perform, it is also for situations like not getting the purchased product or similar. So 3DSecure will significantly decrease fraud, not other disputes.

kramerger 4y ago
But fraud are the problematic ones, the normal disputes are not as costly
- sleepyhead 4y ago
  My experience is that disputes are 100% from Americans who are encouraged by banks to "just do a dispute" anytime they are dissatisfied with anything. And in 100% of these cases it is customers who forgot to cancel or just didn't need the service as much, not really any actual dissatisfaction. Most fraud is stopped by Stripe and not really a big issue, in some cases we do a manual check and it is obvious fraud (no account activity, info not matching, fake data entry etc) and we just refund the charge before any dispute is made.
  - lxgr 4y ago
    On the other hand, the existence of a consumer-leaning disputes resolution system, while pretty unfair to merchants in some situations, is probably a big accelerator for e-commerce in general. I'm much more likely to enter my card number somewhere online knowing that I'll be made whole if something doesn't work out than knowing I'll have to fight for my money back, submit evidence I might not have etc. Just like with fraud [1], and for similar reasons, the optimal number of successful "false disputes" in a payments and commerce system is probably non-zero: Hopefully, for every dishonest/egregious dispute, merchants see dozens of customers that would otherwise not dare to do business with an unknown/new merchant. [1] https://www.bitsaboutmoney.com/archive/optimal-amount-of-fraud/ https://www.bitsaboutmoney.com/archive/optimal-amount-of-fra...
    - bodomalo 4y ago
      The system you talk about is called PAYPAL. Paypal is able to step in BETWEEEN - bevore the customer is able to start a stupid and complicated CHARGEBACK at his bank. Very often you loose a paypal case. But: That means only the CHARGE(money) goes back, but the bank can not take a 35$ fee for chargeback too. You understand? I am selling 99 cent downloads. On Paypal I loose nothing (99 Cent goes back) On stupid systems like stripe, where they do not handle any customer-communication - I loose 20 Euros + 99 Cent. Complete desaster. I will add a 5 Cent extra fee to stripe payments in the future to handle that high chargeback fee. That will work into paypals hands.

kramerger 4y ago

But fraud are the problematic ones, the normal disputes are not as costly

sleepyhead 4y ago
My experience is that disputes are 100% from Americans who are encouraged by banks to "just do a dispute" anytime they are dissatisfied with anything. And in 100% of these cases it is customers who forgot to cancel or just didn't need the service as much, not really any actual dissatisfaction. Most fraud is stopped by Stripe and not really a big issue, in some cases we do a manual check and it is obvious fraud (no account activity, info not matching, fake data entry etc) and we just refund the charge before any dispute is made.
- lxgr 4y ago
  On the other hand, the existence of a consumer-leaning disputes resolution system, while pretty unfair to merchants in some situations, is probably a big accelerator for e-commerce in general. I'm much more likely to enter my card number somewhere online knowing that I'll be made whole if something doesn't work out than knowing I'll have to fight for my money back, submit evidence I might not have etc. Just like with fraud [1], and for similar reasons, the optimal number of successful "false disputes" in a payments and commerce system is probably non-zero: Hopefully, for every dishonest/egregious dispute, merchants see dozens of customers that would otherwise not dare to do business with an unknown/new merchant. [1] https://www.bitsaboutmoney.com/archive/optimal-amount-of-fraud/ https://www.bitsaboutmoney.com/archive/optimal-amount-of-fra...
  - bodomalo 4y ago
    The system you talk about is called PAYPAL. Paypal is able to step in BETWEEEN - bevore the customer is able to start a stupid and complicated CHARGEBACK at his bank. Very often you loose a paypal case. But: That means only the CHARGE(money) goes back, but the bank can not take a 35$ fee for chargeback too. You understand? I am selling 99 cent downloads. On Paypal I loose nothing (99 Cent goes back) On stupid systems like stripe, where they do not handle any customer-communication - I loose 20 Euros + 99 Cent. Complete desaster. I will add a 5 Cent extra fee to stripe payments in the future to handle that high chargeback fee. That will work into paypals hands.