After seeing
this thread and realizing that more and more people get scam chargebacks on Stripe, I thought I'd warn people about using Stripe as a card checkout.
One week my ecommerce got several high priced orders, all well and good. A week later, all of the customers do a chargeback and claim "fraud".
Customer places order > Tells Stripe/bank "I haven't ordered this" > Stripe refunds customer
+ charges an extra $25 fee.
In the end the customer got the products, the money back, and I lost the product price + $25 extra for each scam order. I lost -$600 that week. Even when sending in proof like invoices, shipping and everything else, they rejected my claim. Support don't have a phone, only an email they don't like to respond on.
Someone on BHW said:
"High chargeback rate = something is wrong with your store
e.g. delivery/bad reviews/not trustworthy enough/not satisfied or could be a bad market with higher than usual chargebacks"
Unfortunately, that's not true.
I thought I was alone getting hit by scammers, but
NOPE!
Check out this page:
https://www.merchantmaverick.com/reviews/stripe-review/ and scroll down all the way to the comments. 90% 1/5 stars and complaints.
Some reviews:
"Okay so I’ve been using stripe 2 years now.. And all of a sudden I was hit with 6 different fraudulent disputes through stripe. Most orders $2,000-3,000 each. So now I am in something like $16,000 in debit and they keep trying to charge my card and I do not have those funds. I sell aftermarket car parts for much larger companies, so that money has been sent up and products shipped out! They were zero help. No idea what to even do now. May lose the business. Thanks stripe!"
"Horrible horrible HORRIBLE merchant protection. Almost no communication throughout the process. No phone, weeks for a email response and then you lose charge back even though you followed their terms in the first place. You’re better off throwing your money out the window then using stripe."
"GARBAGE. No phone support. If you get a charge back, no COMMUNICATION. just submit your dispute and and you get no other responses, so basically if the person initiating the chargeback submits another piece of evidence you DONT get a reply. It’s a sham, they dont give to shits about merchants!!!!!"
"Stripe cannot be used for international transactions – well it can , but you will end up with many , many chargebacks. Take my word for it.Currently – I am based in Australia and offer Stripe to Australians ONLY – All Stripe transactions we verify with phone calls and 1-2 other verifying methods before shipping any Stripe orders. This is because Stripe do not screen for fraud , and let all payments through – whether legitimate or 100% fraudulent. If you are using Stripe.com – process transactions in your own country and do NOT ship internationally."
"Ok , so Stripe.com – what is going on here?We have used Paypal for 5 years , not a single dime lost in disputed charges etc. We have Stripe.com for a significantly shorter time and within weeks of using them we receive “Disputes” for goods shipped with tracking. Then it was ok , and now recently disputes have arrived again.When Stripe email us about a “DISPUTE” – we respond with tracking details , at which point they take back all of the money + $25 dispute fee , and they keep all of the fees also?"
"We will like to take Storenvy and Stripe to court. We are sellers and someone bought $8,000 in our storenvy. After 3 days Stripe answer that we where ok with the payment and we should ship the item. Hours later we got a chargeback. "
"OMG.. STRIPE STRIPE STRIPE…These guys say they have proven fraud protection, that they actively work to protect our businesses from fraudulent charges and monitor suspicious transactions BUT they are far from this.After having over 50% of my orders a charge back disputes, I ask many questions, I wondered what the hell is going on."
"I am a seller with XXXXX.xxx I had a customer purchase about $5000 worth computers and Stripe returned the money to customers for the claim of unauthorized transactions, I clearly proved that the customer purchased the items but stripe did what they wanted. The customer never returned the computers and they made the first claim while they were purchasing another set of computers. The items were delivered by Fedex and the transaction was approved for the address to which the items were sent. These people are insane ."
I'd Suggest staying away from Stripe, as scammers are sniffing out eCommerces using Stripe and make a living doing chargebacks. Anyone else here been through this? I sold my eCommerce yesterday, I went from good profits to just losing money.
Be careful guys!
