How to win a Stripe dispute or chargeback

A flowchart of the Stripe chargeback / dispute process © stripe.com

We understand that winning Stripe chargebacks, also known as disputes, is an essential aspect of any business that accepts payments online. Chargebacks can be costly and time-consuming, and losing them can harm your business's reputation. Therefore, it is crucial to know how to win Stripe chargebacks effectively.

In this article, we'll cover everything you need to know about winning Stripe chargebacks, including understanding the process, preparing yourself to prevent chargebacks happening and what to do if you do receive a dispute:

Understanding Stripe chargebacks

Before we delve into winning Stripe chargebacks, it's crucial to understand what they are. A chargeback occurs when a customer disputes a transaction with their bank or credit card issuer. The disputed amount is returned to the customer, and the merchant incurs a chargeback fee.

Stripe, like other payment processors, has its own chargeback process. When a chargeback occurs, Stripe notifies the merchant via email and provides all the relevant details of the dispute. The merchant must then respond with evidence to prove that the transaction was valid.

The Stripe chargeback / dispute analytics dashboard © stripe.com

Chargebacks and disputes are also more common in certain communities and industries, such as for online businesses. Do you use a forum platform like Discord to interact with your members/audience? You may face more chargebacks than usual because the customers of these websites/apps are often younger and more spontaneous – as in, likely to make an impulse purchase that they then regret.

Preventing Stripe chargebacks: Customer support

Prevention is always better than cure, and this is particularly true for Stripe chargebacks. There are several steps you can take to reduce the risk of chargebacks, including, perhaps most importantly – at least for us here at Memberful – offering excellent customer support.

Eyal Avital from our Customer Happiness team says: “I find members open Stripe disputes if it's too hard to find the site owner’s contact information or a relevant FAQ page with details on canceling the subscription.

“If it's harder than taking a few minutes to pick up the phone to start a Stripe dispute, that's the direction the customer will go. You need to proactively communicate with customers: add a messaging saying Contact me or direct message me on social media if you have a problem!’ to avoid disputes.”

Preventing Stripe chargebacks: A clear and transparent purchase process

Another way to prevent Stripe chargebacks is to make your purchasing process as clear and transparent as possible. If you are selling products or services online, make sure their titles descriptions (and images if relevant) are easily understood and comprehensive. Prices and billing process, and privacy and cookie policies, should be 100% transparent.

Make sure that your website is secure and your payment process is user-friendly and that customers receive simple and clear communications about their interactions with your site, including purchase confirmation emails that contain a contact email address.

Responding to Stripe chargebacks

Despite taking all the necessary steps, chargebacks may still occur. In such cases, it's essential to respond quickly and with appropriate evidence to increase your chances of winning the dispute.

At this point, Stripe will hold the customer’s funds from your company so you need to act fast – and bear in mind it may be more than just a transaction that is at risk. Eyal continues: “Disputes might not just harm a company’s reputation; it could lead to account closure. For Stripe, it's not about the percentage won, it's about the percentage filed against the account.”

To gather some context on the dispute within your Stripe account, you can click on the customer’s email address at the top and look through their account history. Once you’ve understood how this customer interacted with you, copy their email address to reach out to see if you can resolve the problem. If you don’t hear anything, wait four to six days and follow up.

If the customer won’t withdraw the chargeback, go into your Stripe account and click the ‘Counter Dispute’ button and fill out the forms that are presented to you. Your case should include evidence of the transaction, such as order purchase confirmations and receipts.

Part of the Stripe chargeback / dispute process © stripe.com

If possible, include proof that the customer received the product or service – this may be a little more difficult with online products but an email chain should suffice; be sure to include all communication records between you and the customer.

In the above example, we offer a Memberful integration with Discord. You can use this to show which users have used your server and when, which will be essential evidence.

Add any other relevant information that you think will support your case. Each financial operator (Visa, Mastercard, etc) has different requirements for a chargeback but this information is easily found online: search for ‘chargebacks’ on your supplier’s website.

Frequently asked questions (FAQs) for how to win Stripe chargebacks

What should I do if I receive a notification of a Stripe dispute?

Upon receiving a dispute notification, it's crucial to act swiftly. Review the details, gather evidence, and craft a compelling response.

Can offering a refund help in resolving a dispute?

Yes, offering a refund or replacement can demonstrate good faith and may prevent disputes from escalating further.

Is maintaining detailed records important in winning a dispute?

Absolutely. Detailed records of transactions, communications, and order details can serve as strong evidence in your favor.

How can consumers prevent unauthorized transactions?

Consumers should regularly review their statements, contact merchants first before initiating a chargeback, and provide clear details to their banks when disputing a charge.

What role does exceptional customer service play in dispute resolution?

Exceptional customer service can prevent disputes by addressing concerns promptly and maintaining open communication channels with customers.

Are there specific regulations to consider when dealing with Stripe disputes?

Yes, it's essential to understand Stripe's chargeback regulations and policies to navigate disputes effectively.

Conclusion: How to win Stripe chargebacks

Winning a Stripe chargeback is not always easy, but it is possible with the right strategy. You’ll certainly increase your chances of winning – and indeed resolving the case with a customer who may yet come back to you – if you respond quickly and thoroughly to the chargeback notice.

Above all, make sure to remain courteous and professional in your communication with the customer and Stripe at all times. By understanding the chargeback process, taking preventative measures, and responding promptly and appropriately, you can increase your chances of winning which will avoid costly fees and any damage to your brand reputation.

For more information about Stripe disputes, go to stripe.com/docs/disputes.