I’m the PM on Chargeback Protection. Startups told us they don’t want to deal with the hassle and unpredictability of chargebacks; that’s why we built this. Happy to answer any questions you have.
0.4% is an extremely steep price for a company like mine doing over $2.5m in annual turnover (saas) which has a very low fraud rate. I actually think currently we pay less than that by doing nothing (meaning letting Paypal handle it, and losing every case).
However I'd gladly pay a few thousands per year for it, or be able to pay it on selected transactions (only US for instance).
Then this offering isn't cost effective for you and you can ignore it. I'm not sure I understand why this thread is full of people complaining it doesn't solve a problem this solution isn't targeting, or, like you, saying this costs more than simply accepting your low chargeback rate. When I rent a car, I decline the offer for me being able to return the car without gas because for me, it's trivial and cheaper for me to refill the car. I don't complain that the price should be lower, or that they should instead be offering sunroofs on more cars.
And I'm the opposite. I return the car empty every time, because the cost of "finding a gas station" when you're in a hurry to catch a flight isn't worth the extra $X they charge for the service to fill it. Choices are great!
> However I'd gladly pay a few thousands per year for it
0.4% on $2.5m is $10k a year. I realize "ten" is a bit more than "a few", but is Stripe's price point materially that far off from where you want it to be?
Said another way, I imagine that there are at least a few problems smaller than chargeback protection at your company that you throw $10k or more at just to make that problem go away... right? If so, this makes their price somewhere between reasonable to good.
I am really curious about your thinking on their price as it relates to other expenses in your company. Could you expand on that?
Another thing to take into account is that if you're not using Stripe Checkout now, you will have to migrate to it, and since Dynamic 3DS will be used to filter and "secure" potential fraud, you will probably see a decrease in conversion rate.
Hey there, founder of Chargehound here, it's a slider so you can adjust it to 5 mins if you want.
Many companies do take up to 30 minutes especially if they are compiling a comprehensive portfolio (if the dispute is for thousands of dollars) and are outsourcing the representment.
3D secure payments in Europe have been a standard for years - being presented with additional verification steps for online purchases.
Attacker cannot know who you bank with. Plus, most of the time the confirmation screens are something like confirming 2nd/Xth characters of your password/date of birth.
Before this, if a customer opened a dispute and you won, you (the business owner) didn't have to pay any dispute fees without having to pay for anything extra. It was just a part of the standard Stripe offering.
You even wrote this on your site's documentation[0]. Here's what it says as of right now:
> There is a dispute resolution process through which you can respond and submit evidence to make your case that the payment was valid. If the dispute is found in your favor, the disputed amount and fee is returned back to you.
If we don't opt into this new fraud protection service, are all dispute fees still waived if the business wins the case?
I work at Stripe. That’s right! Nothing changes in the way we handle disputes for businesses that are not on Chargeback Protection. Your dispute fees are still waived if you win the dispute.
I'm curious if there is a way we could avoid the cost all together if we don't need the money deposited in our bank accounts right away?
I work for a non-profit & we had some very large donations come in online through Stripe. Someone did a typo donated $10,000. I'm sure we could set some max limit & say no donations larger than $X but it was common to have $1,000 donations. Even with a $1,000 donations the fee gets expensive.
In our case, we don't need those funds immediately. We would much rather not have access to them for a month & not have to worry about a request for the funds to be refunded.
I work at Stripe. Yes, absolutely. We’re continuing to invest in Stripe Radar and our machine learning fraud prevention (the team is doubling by the end of the year!). Radar is included at no additional cost in our standard payments processing pricing (2.9% + 30 cents in the US, with similar pricing elsewhere).
Completely unrelated, but please add an alternative fee structure more appropriate for microtransactions. Stripe has a vast amount of useful features from which my business could benefit, but its cost is prohibitive as all our transactions are for low amounts (1$ or less), which make your 30cent fee a 30% of the total.
We are forced to use credit cards directly and Paypal, as both offer a much lower fixed fee (sometimes 0) in exchange for higher %.