←back to thread

Stripe Chargeback Protection

(stripe.com)
341 points shedside | 9 comments | 03 Jun 19 11:19 UTC | HN request time: 0.001s | source | bottom
Show context
jasonkester ◴[03 Jun 19 11:36 UTC] No.20082119[source]▶
But this isn't the product I want.

I don't want to ever fight chargebacks. Because my policy is to never take money from people who don't want to give it to me. I want to automatically refund every chargeback attempt without it affecting my ability to charge credit cards.

One of my businesses targets consumers, who have this amazing ability to "forget to cancel" or to have "cancelled 3 months ago, but for some reason we're still billing them" or to just plain decide that the last six months of charges were fraudulent and that their bank should get them reversed.

All of that is fine with me, and in fact every invoice I send out says as much: We'll happily refund every penny you ever paid us if you simply ask. But lots of people aren't comfortable asking for their money back. They are, however, plenty comfortable asking their bank to ask for their money back.

I just want a way to streamline that process that doesn't involve me having to handle fighting disputes that I'd prefer to lose. And of course to not have those lost "disputes" count against me.

Any ideas on how to do that, Stripe?

replies(22): >>20082132 #>>20082173 #>>20082219 #>>20082225 #>>20082227 #>>20082259 #>>20082263 #>>20082440 #>>20082639 #>>20082912 #>>20083100 #>>20083155 #>>20083169 #>>20083546 #>>20084262 #>>20084403 #>>20084452 #>>20084986 #>>20085124 #>>20085222 #>>20089766 #>>20093788 #
1. scarface74 ◴[03 Jun 19 11:55 UTC] No.20082219[source]▶
Would you feel that way if you were selling physical goods or even services where you had to pay workers - like a lawn business?

It sounds like you are selling a near zero marginal cost software business.

replies(3): >>20082248 #>>20082601 #>>20084396 #
2. jasonkester ◴[03 Jun 19 12:02 UTC] No.20082248[source]▶
I do have server expenses that map directly to processing work done for individual customers, so there is a quantifiable amount of real money lost at times. But at the end of the day, I still don't want somebody's fourteen dollars enough to fight them for it (even if it means I also lose another $5 in real expense and a few more in chargeback fees).

But you're absolutely right. If it were physical goods or services, I'd fight those chargebacks for sure. (Though it'd be a lot harder for one of my deadbeat customers to plausibly claim that he'd "forgot that I mowed his lawn").

replies(1): >>20084621 #
3. aparks517 ◴[03 Jun 19 12:56 UTC] No.20082601[source]▶
Not sure about OP’s costs, but I sell physical goods and have a similar attitude: I don’t want money from anyone who’s not delighted to give it to me. Most people are good most of the time and it works out fine.

I have had a couple of obvious scammers take advantage, but that’s on them to square with their conscience. Life’s too short to spend it fussing with folks like that.

replies(1): >>20082643 #
4. scarface74 ◴[03 Jun 19 13:03 UTC] No.20082643[source]▶
I agree. I use to have rental property and when you evict someone you theoretically can go after them for back rent and fees. It could total well over $2000. But it wasn’t worth the hassle and you factor that possibility into the rent you charge.

Or as my southern grandfather use to say:

Don’t chase after old money or old girlfriends

5. amyjess ◴[03 Jun 19 15:42 UTC] No.20084396[source]▶
People who sell physical goods bake the cost of these losses into their pricing. In fact, any large business will have financial analysts whose sole job is to calculate exactly how much they'll need to inflate their prices to make up for losses due to fraud, theft, accidents, and the like. It's kind of like being your own insurer, except the customer pays your premiums.
replies(1): >>20085446 #
6. dexterdog ◴[03 Jun 19 15:59 UTC] No.20084621[source]▶
Once a chargeback is filed you are losing the fee if you either accept it or don't fight it. My cancellation process is simple, certainly simpler than contacting your bank and identifying yourself and going through the chargeback process. That doesn't stop people from going to their bank for the last 3 months of subscription and calling them fraudulent because they never told us to cancel them. I fight every single chargeback because their always lies by the customer in my case and they involve real money already spent by my company. We win some and lose some.
7. scarface74 ◴[03 Jun 19 17:03 UTC] No.20085446[source]▶
But I doubt that I could order $5000 worth of furniture, have it delivered, dispute the charges and then the vendor just shrugs.

But, I’ve never disputed charges outside of obviously being double charged. Most of the time, I’ll speak with vendor.

replies(1): >>20086518 #
8. amyjess ◴[03 Jun 19 18:31 UTC] No.20086518{3}[source]▶
Unfortunately, this is exactly what happens with identity theft.

Imagine if someone stole your credit card number, ordered $5000 worth of furniture with it, had it delivered, and then you discovered the unauthorized purchases on your account and disputed the charge. The vendor has no choice but to just eat it.

It's unfortunate, but it happens, and the only way to mitigate it is to raise prices to offset this kind of losses.

replies(1): >>20090127 #
9. scarface74 ◴[03 Jun 19 23:31 UTC] No.20090127{4}[source]▶
That sucks. I didn’t think about it from the merchants side.