Stripe chargeback handling?

[NagacomesforU]

Hi all,

Recently I have had two separate cases of fraudulent chargebacks through stripe. The first one had a small amount so I said f it and refunded this fraud, however this second one is alot bigger.

The reason for this is that the buyer purchased my product for months on end, and now charges back on ALL of those months. This not only means a huge chargeback amount, but it also means that for every single chargeback, a stripe cost is added for $15-$20 PER transaction. So, PER month (?!?!) this makes that even more huge.

The thing is, this fraud didn’t even contact me at all in this time, just used my product for months on end then decided to fake refund. I knew the software business could be bad like this, but damn.
I have this buyer’s details so I could start a case if needed. However my question as follows:
- Stripe didn’t withdraw this money (for the chargeback) from the stripe account itself, instead it withdrew it from my bank. I have the option to actually book this money back to my bank account (since they took the money without my permission, I can have it back in a day or two) and I am contemplating of doing that. They shouldn’t be holding the money hostage like this, it was already on my own account as well - they withdrew it from there. What would you do? Is this smart and does anyone have experience in doing that? I can’t find much about it on the net.
- Anything else to prevent this other than just quit using any payment processors? Currently only accepting crypto because of these shits.

 

[Rawspele]

I'm sorry you had this terrible experience. I don't have experience in this but I'm interested to learn as well.

Is there anything in your website policy that you could show stripe, like no refunds after ....or?

 

[NagacomesforU]

I'm sorry you had this terrible experience. I don't have experience in this but I'm interested to learn as well.

Is there anything in your website policy that you could show stripe, like no refunds after ....or?

Thank you, yeah it clearly says on the checkout page there’s no refunds after it’s been purchased (of course when something’s clearly wrong, im always open to anything). However, this person bought it for MONTHS on end. So claiming this chargeback is ridiculous.

 

[Enzygnev]

If Stripe already pulled the funds from your bank wouldn't recommend manually pulling it back. Could be seen as a violation and get your account banned

 

[NagacomesforU]

If Stripe already pulled the funds from your bank wouldn't recommend manually pulling it back. Could be seen as a violation and get your account banned

Yeah I would preferred not to have it banned, however this feels very much like a Guilty until proven innocent case. Next to that they're taking their sweet time 'reviewing' this case

 

[Levi2402]

Hi all,

Recently I have had two separate cases of fraudulent chargebacks through stripe. The first one had a small amount so I said f it and refunded this fraud, however this second one is alot bigger.

The reason for this is that the buyer purchased my product for months on end, and now charges back on ALL of those months. This not only means a huge chargeback amount, but it also means that for every single chargeback, a stripe cost is added for $15-$20 PER transaction. So, PER month (?!?!) this makes that even more huge.

The thing is, this fraud didn’t even contact me at all in this time, just used my product for months on end then decided to fake refund. I knew the software business could be bad like this, but damn.
I have this buyer’s details so I could start a case if needed. However my question as follows:
- Stripe didn’t withdraw this money (for the chargeback) from the stripe account itself, instead it withdrew it from my bank. I have the option to actually book this money back to my bank account (since they took the money without my permission, I can have it back in a day or two) and I am contemplating of doing that. They shouldn’t be holding the money hostage like this, it was already on my own account as well - they withdrew it from there. What would you do? Is this smart and does anyone have experience in doing that? I can’t find much about it on the net.
- Anything else to prevent this other than just quit using any payment processors? Currently only accepting crypto because of these shits.

possible that the refund request is coming from the same individual.

I recommend contacting Stripe support, as they should be able to assist you. Ensure you provide the necessary details below, even though Stripe may already have some of this information. It's important to present this in a professional manner, as it pertains to your business operations.

Buyer and Order Information:
Include details such as the buyer's IP address, device information, location, and other relevant data.

Order Delivery Confirmation:
Even for digital products, ensure you have a clear process in place and maintain records of delivery.

Terms of Service and Refund Policy:
Make sure your terms of service and refund policies are clearly stated. Provide links to these for stripe support.

As a best practice, consider blocking the user's IP address, email, and devices to prevent further issues.
It is also advisable to include a checkbox at checkout where the buyer can agree to your terms of service and policy. This ensures you can present this information to Stripe when necessary.

If you need further explanation you can dm me. Safe sail friend

 

[NagacomesforU]

possible that the refund request is coming from the same individual.

I recommend contacting Stripe support, as they should be able to assist you. Ensure you provide the necessary details below, even though Stripe may already have some of this information. It's important to present this in a professional manner, as it pertains to your business operations.

Buyer and Order Information:
Include details such as the buyer's IP address, device information, location, and other relevant data.

Order Delivery Confirmation:
Even for digital products, ensure you have a clear process in place and maintain records of delivery.

Terms of Service and Refund Policy:
Make sure your terms of service and refund policies are clearly stated. Provide links to these for stripe support.

As a best practice, consider blocking the user's IP address, email, and devices to prevent further issues.
It is also advisable to include a checkbox at checkout where the buyer can agree to your terms of service and policy. This ensures you can present this information to Stripe when necessary.

If you need further explanation you can dm me. Safe sail friend

Could be, but I don’t know. I don’t see why someone would do that on two seperate accounts instead of just one.

Anyway, still contemplating on simply booking back this scam. Stripe is basically holding the money hostage right now.

 

[NagacomesforU]

Update:

Just lost the chargeback, wow. Stripe and those cc issuers are complete trash. I already thought that they’d approve the chargeback. The fraudster’s bank doesn’t wanna lose his customer so they approve the chargeback.

Obviously I am going to charge back that money to my own bank now. Wish me luck

 

[Hunter spirit]

Update:

Just lost the chargeback, wow. Stripe and those cc issuers are complete trash. I already thought that they’d approve the chargeback. The fraudster’s bank doesn’t wanna lose his customer so they approve the chargeback.

Obviously I am going to charge back that money to my own bank now. Wish me luck

any updates?

 

[parkour]

From my experience, it’s never a good idea to fight chargebacks, you’ll just lose credibility with the payment gateway and risk getting shut down your stripe account.

Many years ago when I worked in corporate, we watched users do the same thing: pay, use everything, file a chargeback, and keep benefiting. The payment processor basically told us: there’s nothing you can do.

What I did after getting tired of constant abuse (not sure whats your business model and product is) was instantly blocking access the moment a chargeback appears, just cut access so they can’t keep using the service for free. Not ideal but it is what it is...