How do I handle a dispute initiated from a supporter from Stripe?
What is a dispute?
A dispute (also known as a chargeback) occurs when a cardholder questions your payment with their card issuer.
To process a chargeback, the issuer creates a formal dispute on the card network, which immediately reverses the payment, pulling the money for the payment—as well as one or more network dispute fees—from Stripe. After that, Stripe debits your balance for the payment amount and dispute fee.
To help you submit the best possible response for each dispute, Stripe provides a guided process within the Dashboard. This allows you to provide all of the necessary text and images that are appropriate to the dispute reason and your counterargument.
Throughout this process, Stripe facilitates your case but doesn’t have influence over the outcome, which is at the sole discretion of the account owner’s bank. The success rate is typically three in ten disputes.
Dispute Frequency
Typically one dispute per 4k supporters per month is average. While the expected rate of winning a dispute is roughly 3 in 10.
Dispute Fees
Stripe deducts a fee from your account balance when a cardholder initiates a dispute and returns this fee to your balance if you ultimately win the dispute. If you choose not to pursue the dispute, the fee and refund will not return to your account balance.
Please note: The fee is $15 USD. However, Stripe does not specify a dispute rate per country.
Responding to a dispute
In most cases, you can challenge a disputed payment as long as you submit strong evidence to the card issuer that invalidates the dispute claim before the deadline.
For a best-case scenario, email the user first, they may reply and decide to cancel the dispute, and then we can cancel and refund them on our own.
As soon as a dispute is active, the only way to overturn it is by submitting evidence in response. Even in cases where your supporter claims to have withdrawn the dispute, you must respond with evidence for the dispute to be closed in your favor. Submitting evidence signals to the issuer that you don’t accept the dispute and want the funds returned.
Refer to these links to learn more about Stripe’s process: https://stripe.com/docs/disputes/responding https://stripe.com/docs/disputes/best-practices
Prepare Your Evidence
Prepare a document
At the top of the document, provide the user’s email address.
Below add text as follows:
Annual subscription to your community.locals.com. The user created the username below and added a profile picture.
Take a screenshot of the user info (please see the steps below to locate the user)
Member lookup
Filter on supporter monthly or annual
Find the user
Take a screenshot of the user information
Add this image
Insert where can I manage my subscription
Add text as follows:
See our terms which are available on our website: locals.com/terms. Refer to Section 5 that specifies very clearly the policies related to automatic renewals and cancellation policies
Updated on: 15/11/2022