Stripe Chargeback Protection

Has anyone done the math on this? You’re paying an extra 0.4% fees per txn which is a lot. So your dispute loss rate would have to be > 0.4% for this to make sense. That seems pretty high. That probably means your overall dispute rate is above 0.6%. In my experience you can get your dispute rate well below 0.1% (effectively a non-issue) by making sure your support channels are working and not clogged, and you have a generous refund policy (and of course being honest about pricing and billing, especially for subscriptions).

To me this seems like knowing about a small leak in your basement, but instead of fixing it, you buy a basement water damage insurance policy.

So, .4% fee for $10,000 in sales amounts to $40. And losing one chargeback dispute costs you $15, plus time and effort to fill it in and submit it. Not to sound cynical, but odds are you will probably lose it anyways because the customer didn't feel like paying anymore.

Am I missing something? The chargeback protection fee doesn't sound terrible

Yes I do lose most disputes regardless of what the situation is, and I did forget about the $15 fee. I guess it really depends on the type of business, will probably make sense for some, but as a consumer I do see a lot of small businesses out there that should be looking first at how to get their chargeback rate low enough that they don’t need something like this in the first place.