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Edwin Arbus

Stripe Chargeback Protection - Defend your business from the unpredictability of disputes

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OpenAI
•
Introducing Stripe Chargeback Protection:
🛡️ Avoid the unpredictability of fraudulent disputes
👛 Get reimbursed for the disputed amount and dispute fee
🙅 Forget about evidence submission

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Ryan Hoover
My first job was at a video game startup a decade ago. We sold virtual goods. The biggest problem: Chargebacks. Every chargeback cost us $10 regardless of the purchase amount (i.e. a $2 microtransaction cost us $10) and literal paper shuffling. Glad to see Stripe combat this. 🙌🏼
Youssef KH
@rrhoover amazing and this is the only thing pushing me back from using stripe or any card processing platform, but now this is truly a breakthrough and innovation. Thanks Stripe
Edwin Arbus
Maker
@rrhoover @ucefkh Don't hesitate to ping me if you need any help getting set up with Stripe! :)
Youssef KH
@rrhoover @edwinwee yes please I really need to get back and finish my Stripe Atlas Application :) for my startup 01TEK.com
Eeke de Milliano
Maker
I’m the PM on Chargeback Protection. Startups told us they don’t want to deal with the hassle and unpredictability of chargebacks; that’s why we built this. Happy to answer any questions you have.
Ranjit Ghoshal
@eeke_de_milliano this sounds awesome I'll tag you for now but will get back in touch soon!
Laurent Perrier
@eeke_de_milliano But most startups don't use Checkout?
Ranjit Ghoshal
@eeke_de_milliano @_laurentperrier sooooo ... I'm a start up, and using stripe ... sheesh (I am not tech) ... so what would you use?
Michael Sitver
@eeke_de_milliano Love the idea. I saw that you need to install the new checkout to qualify. We use Squarespace commerce. Do you know if their checkout qualifies for this?
Laurent Perrier
@eeke_de_milliano @ranjit_ghoshal You use Stripe, but most likely you're not using Stripe Checkout. You're most likely using the API either directly or through a third-party.
Laurent Perrier
I got really excited until I realized it only works with the new checkout forms... It seems Stripe is more focused on getting small creators and merchants on their platform rather than building features for their developer ecosystem. The way it works is by requiring 3D secure on transaction it deems riskier which shifts the chargeback responsibility anyways. It's essentially 0.4% to do a radar check and add an extra step in the checkout if necessary. 3D secure transactions are already protected from chargebacks for the most part anyways so not much added protection here.
Eeke de Milliano
Maker
@_laurentperrier Chargeback Protection is more than just protection. It combines Stripe Checkout's conversion optimization and Stripe Radar's machine-learning fraud models to improve fraud defense while keeping good buyer conversions high. The new version of Stripe Checkout supports Dynamic 3D Secure, which is why we're starting with Checkout first, and we are looking to expand Chargeback Protection to other Stripe integration methods. We send payments we're on the fence about to 3D Secure (these would typically be blocked), and we let good payments straight through without 3D Secure. We use the Stripe network (imagine the billions of payments we have data on) to assess this. Chargeback Protection removes the pain of responding to fraudulent disputes—we'll just reimburse you for the disputed amount and any dispute fees. If you're hit with a fraudulent dispute, Stripe protects _your revenue_.
Laurent Perrier
@eeke_de_milliano The main issue is that you claim this is for startups, but startups don't use Checkout. They use the API integration. I miss the days when developers were your primary target market. This does protect you in cases where Radar didn't do a good job (and therefor didn't send the customer to 3D secure). As long as you use Checkout... Edit: You say you started with Checkout because of the dynamic 3D secure feature, but in the next paragraph you say that the 3D secure payments would otherwise have been declined. So why not offer it on the API and let the riskier payments get declined like they already are anyways?
Jack Smith
seems like a cool idea, but 0.4% extra fees sounds very expensive
Laurent Perrier
@_jacksmith Third party services often charge 1%, so 0.4% isn't too bad.
Ajay Goel
I'm not impressed by this. Stripe has been steadily increasing their fees, but most people don't notice. If you're a SaaS business, in the original version of Stripe, you would pay 30 cents + 2.9% of each transaction. When they rebranded that product to Stripe Billing, it became 30 cents + 3.9%. I just checked their pricing again, and seems that it's been lowered to 30 cents + 3.3%. And now if you want this insurance, as many are correctly calling it, it's another 0.4% so 3.7%.
Anthony V
This seems like an insurance-style solution? Depending on the amount of chargebacks and your transaction volume, even 0.4% can add up. We use Chargehound for automating this process, and only get charged a % of the recovered funds, which seems far simpler.
Miss Rant
@fascinated Never heard of chargehound. This is awesome. Thanks.
Nathan Prescott
Very cool! We've encountered a couple nightmare clients for some of our subscription products. They've done things like use our product for 7-8 months and at the end file fraudulent chargebacks for months 1-3. Even with full correspondence as proof it's still 50/50 that which is nuts.
Kunal Bhatia
Based on the stories I heard from @nickabouzeid, I can attest to this being a nightmare. Well worth the insurance!
James Jennings
Will definitely be looking into this tool. Managing chargebacks et all is a ginormous time suck, especially since there are not real best practices for submitting evidence.
Miss Rant
What happens if you lose the dispute? I have lost some despite all my evidence and proof the person lied. Do you get to keep the reimbursement? How long before you SEE the reimbursement? Instant? 30-days?
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