by archon810 on 3/19/25, 7:50 PM with 35 comments
by archon810 on 3/19/25, 7:50 PM
Banks constantly claw back legitimate transactions no matter what evidence you show them, so now they'll take $30 instead of $15¹.
This is highway robbery.
¹ - unless you use Stripe's Smart Disputes AI, which isn't out yet
Full text of their email from today in the tweet. Or here if you prefer Nitter https://lightbrd.com/ArtemR/status/1902446906640605657
by p0w3n3d on 3/19/25, 8:53 PM
People in command (managers) showing the lack of understanding of what an LLM is and misusing it in the worst way (another is to write to people why their insurance claims have been rejected)
by merek on 3/19/25, 11:42 PM
Once a dispute is opened, what are my options?
- Send a super nice email to the customer asking to withdraw the dispute and promising to refund their payment/s
- Contest by submitting evidence. What evidence is there to show that the customer DIDN'T cancel a subscription?
Both of these processes are laborious and rarely worth the time. And regardless of outcome, the original dispute fee is not returned in my experience.
This feels unjust such that the psychological cost of a dispute outweighs the financial cost for me. I get that merchants should be disincentivized from engaging in dodgy businesses, but even when a merchant does everything right, disputes still happen.
I would like to see a simple, penalty-free option for dispute resolution, similar to:
1. Merchant receives notification of customer's intent to dispute. Merchant has 2 weeks to review the claim.
2. During this window, merchant can refund the payment/s, either accepting the dispute, or refunding as a courtesy. If payment/s are refunded, the case is closed, and no penalties are incurred (apart from transaction fees).
3. If the merchant contends the customer's claim or doesn't respond, the matter becomes a dispute as it exists currently. A fee is withheld, and the merchant can submit evidence within a given time. However unlike the current situation, the fee should be borne by the customer if the merchant is successful. If customers risked a penalty of opening an unsuccessful dispute (especially a non-fraud dispute), it would likely reduce the number of groundless/fake disputes.
by joshstrange on 3/19/25, 9:18 PM
Stripe already made this suck with their $15 fee you get hit with for every chargeback.
Let me say that louder for the people in the back:
If a customer buys your product for $10, they use your product, then they issue a chargeback then Stripe will clawback $25. You are out 250% of your product cost without doing anything else.
Before this change you could dispute it and potentially get back your $10 (minus fees) but you just lost that $15 no matter what.
After this change you have to pay an additional $15 just to dispute it and only if you win do you get that back (but you are still "out" that initial $15). So you have to decide if you want to fight for your $10 by risking another $15.
Also, the dispute process is a complete farce. There is zero visibility and you can provide perfect documentation and they will still deny it.
There is a special place in hell for people that file fraudulent chargebacks.
I say all of this as someone who is favor of customer protections but chargebacks are so far tilted in the customer's favor that small businesses can get screwed easily.
* Pulls out soapbox *
And this is why I'm pro-regulation, pro-customer-protection but there /has/ to be a way to advantage the "small businesses" that every politician pays lip service to. Regulations are written blood most all of the time and are needed but treating "mom and pop"-sized businesses the same as massive corporations with armies of lawyers (that often let them avoid the regulation or blunt it) is insanity.
by Mo3 on 3/19/25, 10:01 PM
by rutchkiwi on 3/21/25, 10:11 AM
by olivtassinari on 3/19/25, 8:50 PM
Adyen has great docs about how disputes are handled on those two networks: https://docs.adyen.com/risk-management/chargeback-guidelines... and https://docs.adyen.com/risk-management/chargeback-guidelines....
by nreece on 3/20/25, 4:23 AM
There are services like Chargeblast, ByeDispute etc. which also help avoid disputes and chargebacks.
by nimish on 3/19/25, 10:50 PM
Butlerian jihad when?