So we sell a service, totally legit, and provide good support, but people go to their banks without even emailing us and say its a fraudulent transaction and Stripe refunds them everything no questions asked and gives us a 15$ chargeback fee.. We used them them for their easy integration but would not recommend them to anyone, what are ways to reduce this chargeback and do you recommend other merchants?
How to avoid Stripe chargebacks?
- Thread starter Vexed
- Start date
which industry?
Doesnt matter
LiquidLeads
Supreme Member
- Aug 3, 2016
- 1,352
- 803
Eat the loss and move on
ContentWriter
Banned - Selling via PM
- May 8, 2013
- 5,735
- 975
Well, that sucks, but I agree that you should continue to do your part in offering high quality products, no matter what those other customers say and do. I wish you the best of luck in continuing!
carsonpoetry
Newbie
- Jul 29, 2016
- 22
- 4
Im going thru the same thing with PayPal. So annoying.
Dbo11tlo
Newbie
- Jun 6, 2013
- 20
- 9
Hi. I use Stripe for all my businesses now a days and have been in that same boat before.
Good news: If you are legit like you say you are, Stripe is SUPER relaxed and gives plenty of chances before fully banning you.
You have to seriously mess up/scam/provide a horrible service to actually get banned after explaining to them what is going on. '
What to do to reduce chargebacks:
1. Use an automated "Thank You!" email that sends out after every purchase a customer makes. Do the generic "thanks for purchasing" message but in big bold text tell them to respond to that same email if they have any issues with the service or product you sell.
2. Add live-chat to your website or a "contact us" button that stays always on the bottom corner of the screen. Reason it NEEDS to stay even if they scroll up or down is to engrave the button into their brain.
If done properly they will always remember that button to get a refund instead of going to the bank. If using a service like Tawk.To it should be a literal 2 minute setup. It's just a copy-paste widget.
My reasoning for this: My account had an almost 12% chargeback (keep in mind, Stripe max is 1% so they were very chill to not ban me).
Now it's lowering slowly but surely. I'm at 2% now after doing what I advice.
Good news: If you are legit like you say you are, Stripe is SUPER relaxed and gives plenty of chances before fully banning you.
You have to seriously mess up/scam/provide a horrible service to actually get banned after explaining to them what is going on. '
What to do to reduce chargebacks:
1. Use an automated "Thank You!" email that sends out after every purchase a customer makes. Do the generic "thanks for purchasing" message but in big bold text tell them to respond to that same email if they have any issues with the service or product you sell.
2. Add live-chat to your website or a "contact us" button that stays always on the bottom corner of the screen. Reason it NEEDS to stay even if they scroll up or down is to engrave the button into their brain.
If done properly they will always remember that button to get a refund instead of going to the bank. If using a service like Tawk.To it should be a literal 2 minute setup. It's just a copy-paste widget.
My reasoning for this: My account had an almost 12% chargeback (keep in mind, Stripe max is 1% so they were very chill to not ban me).
Now it's lowering slowly but surely. I'm at 2% now after doing what I advice.
- Sep 8, 2015
- 5,599
- 5,425
No offense but something is wrong with the way you operate.
I suggest you improve communication with clients.
Something as simple as email "upcoming charge" notification with option to cancel can do wonders.
Alternatives:
2CheckOut.com
Paddle.com (mostly software with few exceptions)
D
Deleted member 731332
Guest
I provide a service online for physical products. There really is no way for someone to be dissatisfied with the products we sell, only the shipping times, which we strive to ship the same day or next business day. We have had customers charge back just to be fraudsters, trying to get something for free. Here is how we stopped 99% of chargeback fraud: Hire a contract attorney, and have them write a contract your customers must agree to at checkout that says something along the lines of "I agree all sales are final, and that any charge back, or involvement of any third party will cause me to be in breach of contract." Then threaten them with a lawsuit for at least $5k for breach of contract and any other actionable claim if they do not reverse or cancel the charge back. If they do not respond to the email demanding them to cease and desist, we have the attorney who wrote the terms of service contact them via email, phone, and certified mail.
Works for me.
Works for me.
patriotnews
Elite Member
- Oct 25, 2015
- 1,562
- 1,382
Not sure what country you're from, but here in the US, I would send back a photocopy of my spread buttcheeks as it would be truly unenforceable.
OP: ask yourself"why are they charging back?" Are you flooded with fraudsters? Are you unreachable to deal with issues? Junk product?
I am willing to wager #2 or 3, fix their problem, fix YOUR problem.
The small local business my fiance worked for used to have charge back issues(8%), they simply included their email address on all invoices, and it dropped to .8%. they then listened to my advice, and dropped it to .2%. Not bad considering that they do 60% online/over the phone to out of state customers. Millions a year.
D
Deleted member 731332
Guest
Oh boy, BHW legal experts. Just when you thought you weren't on Facebook anymore... Seek the advice of a competent business/contract attorney, I'm sure you'll find the truth of the matter quickly, and a way to combat charge back fraud.
When you checkout on my website you also agree that the jurisdiction of the matter resides in my states courts. I'll bet anyone with oppositional defiant disorder will also think that is unenforceable, that one can also not contract the jurisdiction out of federal courts if it's an interstate transaction. But that is also enforceable.
Either way, good luck in business. I got 99 problems but chargebacks aren't one haha
When you checkout on my website you also agree that the jurisdiction of the matter resides in my states courts. I'll bet anyone with oppositional defiant disorder will also think that is unenforceable, that one can also not contract the jurisdiction out of federal courts if it's an interstate transaction. But that is also enforceable.
Either way, good luck in business. I got 99 problems but chargebacks aren't one haha
Last edited by a moderator:
patriotnews
Elite Member
- Oct 25, 2015
- 1,562
- 1,382
Yes, you can threaten your customers, yes you can file a lawsuit, all of that. But being that punitive damages are almost never awarded in the case of breach of contract, I would send you a photocopy of my spread buttcheeks.
It seems bad form to focus on threatening and intimidating customers out of charge backs vs finding out why.
I've worked with some major(think multi million to multi billion dollar) companies and they focus on the customer to fix their issues vs intimidation/threats. That is the way to get a good reputation in business.
It does matter which industry.
I've worked with a diet pill company that has to keep the sales number up very high just to lower the percentage of chargebacks so banks won't close their accounts.
Other industries don't have to do that, but of course they still face chargebacks.