Stripe blocked my payments - Chapter 2

Ababba2

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Few days ago I get this message from Stripe: https://www.blackhatworld.com/seo/stripe-blocked-my-payments-what-can-i-do.1128301/

I've tried to explain my business but no answer from them. Today I got instead a new, completely unrelated message from them:

We’re reaching out because your Stripe account for link removed is at risk of receiving an elevated level of disputes, given the industry you operate in and the charges that have come in so far. Per industry standards, it is difficult for us to support businesses with dispute rates above 1% (by volume or count) on an ongoing basis. It generally takes about a month after the date of the charge before a customer submits a dispute, and we expect that your dispute rate will likely climb.

Given your elevated dispute risk, we will need to hold 25% of all payments for the next 90 days in reserve. During this time, reserved funds will cover any disputes or refunds on your account. Should dispute rates be at acceptable levels after the 90-day monitoring period, reserved funds will automatically be paid out to your bank account. In the meantime, you can track your overall dispute activity under the Analytics section in your Stripe dashboard. To learn more about dispute prevention and common reasons why cardholders file disputes, please view our documentation at https://stripe.com/docs/disputes.

To ensure that your business maintains healthy operations and a low dispute rate, we recommend the following best practices:

  • Set realistic expectations for your customers by clearly communicating estimated shipping or digital delivery times prior to accepting their payment information. If delays are to be expected due to high demand, this should be indicated up front or via email immediately after accepting a payment.
  • If selling physical products, refund cardholders who do not wish to wait for items that are expected to be delayed longer than the originally communicated shipping time. The refund should be issued to their original payment method rather than providing store credit.
  • Provide shipping tracking numbers or digital delivery receipts as soon as they’re made available so cardholders know when they can expect to receive their products.
  • Ensure that product descriptions, product images, item conditions, return policy, refund policy, and any money-back guarantees are accurate, clearly listed, and easily understood.
  • Have easy ways of customer support and defined SLAs for support response times. Most consumers will only resort to filing disputes if they are unable to get their concerns addressed by your support team.
  • Analyze your disputes to see if there are certain products, services, geographies, or order sizes disproportionately contributing to your overall dispute rate.
Please let us know if you have any questions—we're happy to help.

I mean, WTF is wrong with them for sending me all these warning? I never had a single chargeback in almost 2 years, why now they are telling me I should get an elevated risks of chargebacks out of nowhere and they need to protect themself from me? Why? Also, didn't they told me they can't accept my payments in the previous email? Now they're also telling me they will hold the funds? Are they confused or what?
 

BlogPro

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From your first thread, its evident that they noticed brand sales happening on your site. Given that the payment processor is almost always named in any lawsuit pertaining to the illegal selling of branded items, they wanted to ensure their side was covered.

You say that you tried to tell them your business model. Did you, by any chance, mention the term dropshipping when doing that?

If yes, then your support ticket led to your account being flagged because dropshipping as a whole, indeed is considered a high risk/high chargeback niche.
 

Ababba2

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From your first thread, its evident that they noticed brand sales happening on your site. Given that the payment processor is almost always named in any lawsuit pertaining to the illegal selling of branded items, they wanted to ensure their side was covered.

You say that you tried to tell them your business model. Did you, by any chance, mention the term dropshipping when doing that?

If yes, then your support ticket led to your account being flagged because dropshipping as a whole, indeed is considered a high risk/high chargeback niche.

I didn't
 

BlogPro

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You didn't what? Please elaborate...

I am guessing, you didn't mention dropshipping - what did you tell them when they asked for authorization to sell these brands?
 

virtualman89

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If you don't have authorization to sell this brands you shouldn't be surprised that this is happening. If you do have authorization then the issue can be resolved.
 
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