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.
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We are forced to use credit cards directly and Paypal, as both offer a much lower fixed fee (sometimes 0) in exchange for higher %.
0.4% on $2.5m is $10k a year. I realize "ten" is a bit more than "a few", but is Stripe's price point materially that far off from where you want it to be?
Said another way, I imagine that there are at least a few problems smaller than chargeback protection at your company that you throw $10k or more at just to make that problem go away... right? If so, this makes their price somewhere between reasonable to good.
I am really curious about your thinking on their price as it relates to other expenses in your company. Could you expand on that?
It looks trivial for the vendor to man in the middle attack.
I’d take my business elsewhere if presented with a UI from some random e-commerce site asking for extra personal information.
Ultimately established companies know how much chargebacks cost them and thus whether this product is worth it (= costs less).
Attacker cannot know who you bank with. Plus, most of the time the confirmation screens are something like confirming 2nd/Xth characters of your password/date of birth.
Many companies do take up to 30 minutes especially if they are compiling a comprehensive portfolio (if the dispute is for thousands of dollars) and are outsourcing the representment.
You even wrote this on your site's documentation[0]. Here's what it says as of right now:
> There is a dispute resolution process through which you can respond and submit evidence to make your case that the payment was valid. If the dispute is found in your favor, the disputed amount and fee is returned back to you.
If we don't opt into this new fraud protection service, are all dispute fees still waived if the business wins the case?
I work for a non-profit & we had some very large donations come in online through Stripe. Someone did a typo donated $10,000. I'm sure we could set some max limit & say no donations larger than $X but it was common to have $1,000 donations. Even with a $1,000 donations the fee gets expensive.
In our case, we don't need those funds immediately. We would much rather not have access to them for a month & not have to worry about a request for the funds to be refunded.