Stripe Increases Dispute Fee to $15: Is Winning Worth the Cost?
If you are a business that accepts payments online, you are probably familiar with disputes. A customer disputes a charge, and you have to prove that the charge was valid. Here is how to stop this.
Essential Evidence for Resolving Disputes in 45 Days
Evidence of the transaction
Communication with the customer regarding the transaction
Terms and conditions of the transaction
Any relevant policies and procedures
Contact information for the customer
Any relevant receipts or invoices
The Dilemma for Businesses: To Fight or Not to Fight Disputes
But why has Stripe made this change? According to Stripe, disputes are costly and time-consuming for everyone involved. By increasing the dispute fee, Stripe hopes to deter frivolous disputes and encourage customers to work out issues with the merchant directly. However, this change also means that businesses are now faced with a difficult decision: is it worth it to fight a dispute?
The answer, unfortunately, is not clear-cut. Winning a dispute is already a difficult task, and with the increased fee, it becomes even more challenging. For example, let's say a customer disputes a charge of $100. If you want to fight the dispute, you must pay $15 upfront, even if you win. If you lose, you not only lose the $100 charge but also the $15 fee. And even if you win, the time and resources spent fighting the dispute may not be worth the effort.
Dispute win rate is only 20%
To make matters worse, winning a dispute is almost impossible. According to recent data, the average dispute win rate is only 20%. That means that for every five disputes, you are likely to lose four of them. And with the increased fee, losing a dispute is now even more costly.
How we used Y Combinator to get 50% collection rate
So what can businesses do in this situation? At Respaid (YC S23), we have decided to focus on collecting lost disputes instead of fighting them. We have developed a system that uses AI, a respectful approach, and a lawyer's brand voice to collect lost disputes on behalf of our clients. In our first experiments with Y Combinator startups in the S23 batch, we achieved a 50% collection rate within 20 days.
If you are a business facing chargebacks and want to learn more about our approach, we would love to hear from you. We are offering a trial in return for data analytics and insights into the chargeback process. Contact us today to learn more.
In conclusion, the increased dispute fee by Stripe is a challenge for businesses that accept payments online. Winning a dispute is already difficult, and with the increased fee, it becomes even more challenging. Instead of fighting disputes, businesses can focus on collecting lost disputes using innovative approaches like the one we offer at Respaid.
The first 10 readers to reach me (my email), will get a trial to collect their lost disputes.
All we need is: an excel file (no invoices or contrat required).
In return: I want to be able to feature you at Demo Day (Batch ends in 30 days…)
Sounds a deal? Email me: j@respaid.com or book a call.