Would Stripe tolerate %2 Charback if We're leaving more than enough money in the account to cover those disputes?

[moneyGeek]

As the title says, if let's say we're making $100k+/month and our chargeback is ~2%, let's say we always leave at least $10k in our stripe, will stripe still close our account for the high chargeback rate even though we have enough funds to cover the risk of dispute?

Thanks.

 

[chrisgerth]

Leaving more money in stripe wont make a different. First of all this money you keep there does not have same status as a proper rolling reserve. But most importantly if you deviate so much from the median/average vendor they will not bother dealing with you. If you can not keep your chargeback rate within normal range who can guarantee it wont go completely off the charts?

 

[369]

no since visa/mastercard will demand high penalty fee for such high chargebacks.

 

[EliasIT]

No, if you reach their maximum allowed percentage chargeback ratio they will terminate your account.

Try bring down your chargeback ratio!

 

[moneyGeek]

Thanks everybody for the answer, apparently that's not possible.

 

[aage]

You may improve your scrubbing of each transaction and do some verification. Lot's can be done, there are also services available to help you bring down your chargeback ratio.

 

[hankrearden]

You may improve your scrubbing of each transaction and do some verification. Lot's can be done, there are also services available to help you bring down your chargeback ratio.

Would you mind recommending one?

 

[polonieth]

As the title says, if let's say we're making $100k+/month and our chargeback is ~2%, let's say we always leave at least $10k in our stripe, will stripe still close our account for the high chargeback rate even though we have enough funds to cover the risk of dispute?

Thanks.

Sales volume is irrelevant. It's the number of transactions/chargebacks. However, Visa and Mastercard calculate them slightly differently.

2% is never going to work. Anything above 1% will not be sustainable, and you'll be flagged/monitored.

How many transactions to generate 100k in revenue?

 

[DocBrazil]

You may improve your scrubbing of each transaction and do some verification. Lot's can be done, there are also services available to help you bring down your chargeback ratio.

Also interested in services that can dilute the ratio. Please expand on this.

 

[Spinat]

Simply subscribe to some of the many credit card Anti Fraud companies services and call each of your card payers!

 

[Dandyline]

Also interested in services that can dilute the ratio. Please expand on this.

Just do load balancing and add micro subscriptions to drive up transactions.

 

[JohnLocke]

Here are a few suggestions for you:

https://datadome.co/landing-online-fraud-protection-sea

Digital Trust & Safety: Go beyond fraud prevention with Sift

Fraud prevention solutions that enable your business to innovate & grow without increased risk. Protect your customers and commerce with Sift fraud solutions.

sift.com

SHIELD: Mobile-First Fraud Detection & Risk Intelligence

Powered by the latest in AI technology and cutting-edge device fingerprinting, SHIELD empowers online businesses to stop fraud, build trust, and drive growth.

shield.com

And some general information that you want to read about

Anti-Fraud Tools for Preventing Credit and Debit Card Fraud

There are many anti-fraud tools to help protect your business from fraudulent credit and debit use. Are you using all of the available tools?

www.cardfellow.com

 

[DocBrazil]

Just do load balancing and add micro subscriptions to drive up transactions.

Thank you for the reply - however please excuse my ignorance on this - what are load balancing and micro subscriptions? I don't find any explanation searching the site.

 

[Dandyline]

Thank you for the reply - however please excuse my ignorance on this - what are load balancing and micro subscriptions? I don't find any explanation searching the site.

Spreading transaction through multiple MIDS and adding 1000 own subscriptions with pre paid cards that takes 0.1 cent per day or something.

 

[shhhitsme]

Thank you for the reply - however please excuse my ignorance on this - what are load balancing and micro subscriptions? I don't find any explanation searching the site.

Dandy is spot on! You will probably find they are called Friendlies.

 

[EliasIT]

Spreading transaction through multiple MIDS and adding 1000 own subscriptions with pre paid cards that takes 0.1 cent per day or something.

could possibly work if they don't figure that out with their anti fraud systems in place.

 

[twgtrading]

You may improve your scrubbing of each transaction and do some verification. Lot's can be done, there are also services available to help you bring down your chargeback ratio.

I heard there are companies that help you bring your CB rates down. You have any recommendations? Or we can just run some volume personally via some VCC to increase the transactions and volume to bring down the ratio?