←back to thread

Stripe Chargeback Protection

(stripe.com)
341 points shedside | 2 comments | 03 Jun 19 11:19 UTC | HN request time: 0s | source
Show context
eeke ◴[03 Jun 19 11:34 UTC] No.20082108[source]▶
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.
replies(8): >>20082116 #>>20082234 #>>20082270 #>>20082924 #>>20084674 #>>20085299 #>>20086493 #>>20087040 #
czzarr ◴[03 Jun 19 12:06 UTC] No.20082270[source]▶
0.4% is an extremely steep price for a company like mine doing over $2.5m in annual turnover (saas) which has a very low fraud rate. I actually think currently we pay less than that by doing nothing (meaning letting Paypal handle it, and losing every case). However I'd gladly pay a few thousands per year for it, or be able to pay it on selected transactions (only US for instance).
replies(4): >>20082350 #>>20082600 #>>20082634 #>>20083570 #
csa ◴[03 Jun 19 13:02 UTC] No.20082634[source]▶
> However I'd gladly pay a few thousands per year for it

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?

replies(2): >>20083129 #>>20094166 #
1. NotPaidToPost ◴[03 Jun 19 14:01 UTC] No.20083129[source]▶
What he's saying is that currently doing nothing costs him less than what paying 0.4% to 'insure' transactions would, so why bother with insurance?

Ultimately established companies know how much chargebacks cost them and thus whether this product is worth it (= costs less).

replies(1): >>20083378 #
2. globile ◴[03 Jun 19 14:24 UTC] No.20083378[source]▶
Another thing to take into account is that if you're not using Stripe Checkout now, you will have to migrate to it, and since Dynamic 3DS will be used to filter and "secure" potential fraud, you will probably see a decrease in conversion rate.