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Comment by faitswulff | Hacker News Reader

I would count myself in the category of people who don't know exactly how this all works, but this email[0] makes it sound even worse by the end:

> We calculate the dispute rate a number of ways, but the two most common are:

> 1. The percentage of charges on your account that have been disputed (you are currently 23.74%)

> 2. The percentage of volume on your account that has been disputed (you are currently 44.82%)

[0]: https://cdn-images-1.medium.com/max/1600/0*8f0gZoASFf20_-lM.

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These rates are generally dictated by the card companies. We recently had a spike in chargebacks in one of our Stripe accounts, which put us over the warning threshold.

Stripe could have handled it a lot better. They withheld payments from us (over 250k) No notifications, or anything else. They waited until we contacted their support on why our payouts weren't processing before they lectured us on how we should be doing fraud review (we do. We also pay way to much to SiftScience to mitigate that as well)

tl;dr though, Visa, Mastercard, Amex, Discover, etc... all have their own hard limits.

And for others who aren't aware - the standard Visa threshold is 1%. [1] Supposedly with a warning at 0.75% from Visa and at 0.5% from Mastercard.

If you go above that, Visa reserves the option of "potential disqualification from the payment system" [2]. That is, you can be banned from accepting Visa cards ever again.

[1] https://www.braintreepayments.com/blog/changes-to-visa-charg...

[2] (see "Chargeback Compliance Program") https://www.citibank.com.sg/gcb/credit_cards/pdf/Fraud_Charg... [PDF]

And this is over the lifetime of the account!

I notice that this image was removed from the article as well.

That's disturbing. I distinctly remember seeing that image too when I read the article.

Thank you faitswulff for preserving the text at least for posterity.

I dug it out of my browser cache and uploaded it to imgur:

https://i.imgur.com/1CQkZPF.png

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