Stripe just shut down a small biz

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11 points·jarsin··5 comments

So any small business with at least 1% chargebacks it too much for stripe. So if they had only 2 chargebacks out of 200, boom, shut down...

Also means a small group of people from a competitor can shut down anyone's strips account, just get a few people to buy and chargeback.

The business owner was a bit dishonest in her reporting. She had 2 OPEN chargebacks, and 3 LOST chargebacks.

In many cases chargebacks also take time to hit the payment provider, meaning the rate is well over 5/200. If those were competitors, she should have won the 3 LOST chargeback cases.

She also did not explain why people are asking for chargebacks and if those were justified. We don't know her product.

Last time I saw someone complaining about getting many chargeback and how stripe was treating him unfairly. His product only had 1 star reviews, but on his landing page he put "Over 10,000 happy customers", with 5 green stars, like they were from Trustpilot. His product was overpriced and of very poor quality. He only offered partial refunds, and those were attached to some conditions and had to be begged for.

> AND @stripe MAY CONSIDER giving a company their cash back.

With the way chargebacks work, it isn't necessarily their money.

This is very rare and unfortunate, I hope that Stripe resolves this quickly.

There must be viable alternatives to Stripe that are popular, Paddle and Gumroad and maybe Square are good options here.

Never go with Gumroad. We had such a bad experience with them.

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