3 ms·

If you exceed dispute thresholds dictated by card networks, they can place you in a "dispute monitoring program". The fines imposed can be very high if you don

by smca 4y ago

If you exceed dispute thresholds dictated by card networks, they can place you in a "dispute monitoring program". The fines imposed can be very high if you don't take steps to mitigate disputes. We have a vested interest in ensuring businesses on Stripe aren't affected by these programs. https://stripe.com/docs/disputes/monitoring-programs https://stripe.com/docs/disputes/monitoring-programs

mytailorisrich 4y ago
Does the dispute threshold includes all disputes or only successful ones (i.e. the ones the seller failed to overturn)?
- smca 4y ago
  All disputes. The purpose of the card networks' monitoring programs is to encourage businesses to prevent disputes from occurring in the first place. Some more on this here: https://stripe.com/docs/disputes/monitoring-programs/faqs https://stripe.com/docs/disputes/monitoring-programs/faqs
  - mytailorisrich 4y ago
    OK, thanks. So my initial point stands, then, since there is no impact apart from losing every time.
    - Silhouette 4y ago
      Your initial point seems sensible to me. We set a policy years ago that we ignore chargebacks other than accounting for them correctly. We have a very low rate of disputes and in our experience it sucks up a silly amount of time to deal with the few we do get (far more than recovering a typical B2C transaction in our industry is worth). There is no guarantee that you'll succeed and get any money back at all even if the dispute is blatant abuse and entirely without merit. And since now you're going to get hit with the fee in any case and you're going to get the black mark with the card networks in any case it doesn't make any sense for us to spend time and effort dealing with them. We just have to take the occasional hit as a cost of doing business that obviously shouldn't exist but does because cards.

3 ms·

If you exceed dispute thresholds dictated by card networks, they can place you in a "dispute monitoring program". The fines imposed can be very high if you don

by smca 4y ago

mytailorisrich 4y ago
Does the dispute threshold includes all disputes or only successful ones (i.e. the ones the seller failed to overturn)?
- smca 4y ago
  All disputes. The purpose of the card networks' monitoring programs is to encourage businesses to prevent disputes from occurring in the first place. Some more on this here: https://stripe.com/docs/disputes/monitoring-programs/faqs https://stripe.com/docs/disputes/monitoring-programs/faqs
  - mytailorisrich 4y ago
    OK, thanks. So my initial point stands, then, since there is no impact apart from losing every time.
    - Silhouette 4y ago
      Your initial point seems sensible to me. We set a policy years ago that we ignore chargebacks other than accounting for them correctly. We have a very low rate of disputes and in our experience it sucks up a silly amount of time to deal with the few we do get (far more than recovering a typical B2C transaction in our industry is worth). There is no guarantee that you'll succeed and get any money back at all even if the dispute is blatant abuse and entirely without merit. And since now you're going to get hit with the fee in any case and you're going to get the black mark with the card networks in any case it doesn't make any sense for us to spend time and effort dealing with them. We just have to take the occasional hit as a cost of doing business that obviously shouldn't exist but does because cards.