Preventing Chargebacks and Handling Disputes
Strategies for minimizing chargebacks, effectively responding to disputes, and mitigating financial losses due to fraud.
Understanding Chargebacks
A chargeback is when a customer's bank reverses a payment, returning funds to the customer. It's often initiated when a customer disputes a transaction directly with their bank, rather than with you.
Chargebacks can significantly impact your business through lost revenue, fees, and potential damage to your reputation with payment processors.
Common Chargeback Reasons
Chargebacks typically fall into a few categories:
- Fraud: An unauthorized transaction, often from a stolen card.
- Merchant Error: Issues like incorrect billing, duplicate charges, or failure to deliver goods/services.
- Friendly Fraud: A customer disputes a legitimate charge, sometimes due to forgetfulness or buyer's remorse, pretending it's unauthorized.
All lessons in this course
- Understanding Stripe Radar for Fraud Detection
- Implementing Custom Fraud Rules and Logic
- Preventing Chargebacks and Handling Disputes
- Submitting and Winning Dispute Evidence