Ask HN: Stripe and Chargebacks
Furthermore, is there any instance when a bank won't side with its customer ?
We are a SaaS, been with Stripe for 10 years or so. Our chargeback rate is 0.00001% or something silly like that, maybe 1 chargeback every 2-3 years out of thousands of transactions per month.
We are a legitimate business selling a very much wanted service. Users have the option to cancel from their billing panel whenever they want, we send billing reminders 30/14/7/3 days before
This user didn't see the renewal notice or something, who knows. The service was still active, still being used, he gets charged ( 25$ ), they wait 3-4 days and do a chargeback claiming he cancelled.
Stripe reverses the charge, hits us with chargeback fee as well, ask us to send proof to the bank to dispute the chargeback. How can you prove a negative ? Aka, how can you prove the customer DIDN'T send in a cancellation notice or logged in to cancel. We just sent service activity logs showing the service was still being used.
We wrote to the customer asking what's going on. No answer.
We locked the service. The customer logs in to the billing interface ( which remains active for allowing users to update their CC in case of problems), he adds in his CC again AND pays the last invoice again. Then the next day he does a second chargeback. More fees.
Meanwhile Stripe gets back to us saying the bank rule against us with this reason:
Summary of New Information:
THANK YOU FOR YOUR RESPONSE. THE MERCHANT S RESPONSE FAILS TO REMEDY THE DISPUTE. THE CARDHOLDER CANCELLED ON THE DATE PROVIDED ON OUR DISPUTE QUESTIONNAIRE. THE CARDHOLDER IS NOT REQUIRED TO PROVIDE PROOF OF CANCELLATION. THE MERCHANT S LIMITED CANCELLATION POLICY BEARS NO RELEVANCE IN A DISPUTE OF THIS NATURE. FULL CREDIT IS DUE
Is this nuts or what ?
Why are we getting fscked sideways by Stripe, BoA & the customer ?