Kicked out of Stripe, alternative solution?

[aznxfrost]

Our company based in Australia recently got our Stripe account frozen due to high dispute rates, we are given 30 days to find alternative payment provider.

We sell completely legit software subscriptions, but many of the customers simply forget to cancel their subscription and get angry when they found out they have been billed for months without using the software. Or they simply forgot what they have signed up for and think we are trying to "steal" their money.

Our dispute ratio ranges from 0.5% ~ 1.5% monthly, not really that high, and our subscription fees are pretty cheap averaging only $15 USD per transaction. We have processed over 1 Million through Stripe and our monthly turnover is 25k USD.

The main issue with choosing a new provider is that, we need to be able to migrate all the recurring customer data to the new PCI AOC verified provider (Stripe will only send data to these providers), the easiest way would be migrating card data to third party vault like Spreedly, and sign up for another payment gateway that Spreedly support. I have gotten in touch of all the payment gateway in Australia that Spreedly supports, but unable to get approval for our account because they were either
1. Panicking at $250 dollar worth of monthly chargeback once i told them my story with Stripe (trying to be honest here).....
2. Doesn't approve websites selling digital subscriptions

Anyway, I hope someone could offer some insight, or perhaps a way for us to continue doing our business

 

[arlind-]

Have u looked at Braintree?

 

[Deleted member 657006]

Go stelth , and re join stripe , member 1 eye on here can help with docs easly.

i dont see any other way , you have to stop monthly payments auto and get payments manually monthly .

to be honest with such good income why not open a proper business merchant bank

you can open a members area for members to top up there account each month that way stop all these charge backs ...

did you send a email every month warning of payment is due , and if service not wanted please unsubscribe from us on stripe .

 

[Bavaria]

We are using StealthPay. They have no chargebacks.

 

[swollengoat]

Have u looked at Braintree?

Braintree is pretty risk-averse when it comes to digital products. At least, that was the explanation we got when they approved us and then cancelled our account two weeks into transactions.

 

[shiv durga]

We are using StealthPay. They have no chargebacks.

Great , Million dollar Information.

I can also suggest Emerchantbroker.
but StealthPay will be best.

 

[mycatmeows]

Truth be known i always turn away from any service that auto transacts from my account when dealing with the web. Although i do have 3 services that require auto transactions and have connected them to a visa that i only top up when an email arrives that "due payment" is waiting.

 

[Bavaria]

Thank you for the info as well Shiv Durga. I`ll check that payment processor as well

 

[shiv durga]

We are using StealthPay. They have no chargebacks.

Thank you for the info as well Shiv Durga. I`ll check that payment processor as well

Hello, StealthPay is a crypto currency like Bitcoin.
It is not a payment processor.
How to process credit card payments with it?

 

[megaone]

Ask Worldpay (not sure if they accept Australia) or ask some payment processsing Gateways in Australia usual they know what acquiring bank will accept this business model and can forward you to the right person.

 

[royserpa]

Our company based in Australia recently got our Stripe account frozen due to high dispute rates, we are given 30 days to find alternative payment provider.

We sell completely legit software subscriptions, but many of the customers simply forget to cancel their subscription and get angry when they found out they have been billed for months without using the software. Or they simply forgot what they have signed up for and think we are trying to "steal" their money.

Our dispute ratio ranges from 0.5% ~ 1.5% monthly, not really that high, and our subscription fees are pretty cheap averaging only $15 USD per transaction. We have processed over 1 Million through Stripe and our monthly turnover is 25k USD.

The main issue with choosing a new provider is that, we need to be able to migrate all the recurring customer data to the new PCI AOC verified provider (Stripe will only send data to these providers), the easiest way would be migrating card data to third party vault like Spreedly, and sign up for another payment gateway that Spreedly support. I have gotten in touch of all the payment gateway in Australia that Spreedly supports, but unable to get approval for our account because they were either
1. Panicking at $250 dollar worth of monthly chargeback once i told them my story with Stripe (trying to be honest here).....
2. Doesn't approve websites selling digital subscriptions

Anyway, I hope someone could offer some insight, or perhaps a way for us to continue doing our business

Tired of stripe? Get stealth stripe accounts!

 

[Curtis Sumpter]

1. i recommend StealthPay too

 

[shiv durga]

1. i recommend StealthPay too

Its a crypto currency which one needs to buy and send it to an address.
how to process credit card payments with it?

 

[Tomper]

Go stelth , and re join stripe , member 1 eye on here can help with docs easly.

i dont see any other way , you have to stop monthly payments auto and get payments manually monthly .

to be honest with such good income why not open a proper business merchant bank

you can open a members area for members to top up there account each month that way stop all these charge backs ...

did you send a email every month warning of payment is due , and if service not wanted please unsubscribe from us on stripe .

What are the benefits of "proper business merchant bank"? And what are the requirements?

Great , Million dollar Information.

I can also suggest Emerchantbroker.
but StealthPay will be best.

What chargeback rate are they accepting?

 

[InfinityPeace]

The OP's structurall problem is high dispute rates, aka chargebacks. This may continue regardless of which route is taken to replace Stripe, if the alternative is still subject to charebacks. Perhaps a change to the payment model (to crypto or other non-refundable payment methods) is in order to prevent a repeat of the dispute issue with a future vendor.

 

[shiv durga]

Tired of stripe? Get stealth stripe accounts!

how to get stealth stripe accounts?

 

[Bavaria]

Hello, StealthPay is a crypto currency like Bitcoin.
It is not a payment processor.
How to process credit card payments with it?

Stealth is crypto currency like Bitcoin, but StealthPay is a money movement platform based on Stealth.
I do not know if I have the right to explain here how to use their platform as a payment processor. So better contact them to get more detailed info.

 

[jamie3000]

What sort of digital product do you have? I have a free trial to billing website for a digit product with a 2.4% charge back rate and they're yet to say anything to me really.

 

[aznxfrost]

Have u looked at Braintree?

I did, and funnily enough my application got denied because they managed to got in touch with Stripe and here's their response:
"The application was declined previous processor stated that they have had a negative experience with you or your business."
I was literally shocked at the response, how can you have a negative experience with a customer, that made you over $30k in transaction fees without even providing support of any kind.

We are using StealthPay. They have no chargebacks.

StealthPay isn't a credit card processor at all. let alone getting any customer to pay using its payment model.

Truth be known i always turn away from any service that auto transacts from my account when dealing with the web. Although i do have 3 services that require auto transactions and have connected them to a visa that i only top up when an email arrives that "due payment" is waiting.

Unfortunately that's the trend right now, look at Microsoft Office, Adobe Creative Suite etc. like every software is a monthly subcription now.

What sort of digital product do you have? I have a free trial to billing website for a digit product with a 2.4% charge back rate and they're yet to say anything to me really.

I think is less about the ratio, my account was reaching VCMP 75 monthly chargeback threshold. But it would make more sense if that 75 number would be based on your number of transactions, it is unfair if you do a lot of micro transactions like thousands, and you will definitely hit that threshold even if your ratio is below 1%.

 

[yakuzaemme]

Super unpopular opinion, but... The people who do chargebacks are good riddance, and you should actively promote it.

Aim for having 0 disputes, all your customers knowing exactly what they are being billed for and when. Keep them regularly updated with emails reminding them. This will literally be your only way to scale.

As a small business with low income, you want to keep people subscribed for as long as possible. I get it. But once you grow, it's time to think more about quality than quantity. This will reflect upon online reviews, payment providers, word of mouth and everything in-between.


If you still want to play with fire, check out https://www.spreedly.com/. It's how business like TruBrain can survive (where they do shady terms-of-service). They have a terrible reputation and in my eyes do pure scams (and it's super difficult to cancel a subscription), but they're still alive and use Stripe, but through Spreedly.

Best of luck.