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First time dealing with stripe dispute, please need legit help
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First time dealing with stripe dispute, please need legit help

Recently, I sold a shared hosting account on my server to a guy, and a few hours ago, he disputed it. Stripe said to respond with evidence. I want to know from your guys if you have faced this before, and what was the decision of the bank/Stripe, and what did you respond (in general)

Comments

  • AnthonySmithAnthonySmith Member, Patron Provider

    Just refund it unless you have evidence of it being used and it does not qualify for a refund, in which case you will have your evidence already I guess? IP logs etc.

  • rocketrocket Member

    Not dealt with this before (dont' sell anything) but I'm assuming you need to provide them with proof you delivered the service, a copy of the invoice, proof they agreed to your TOS (which should have something about charge backs) and just anything else that builds proof that they signed up to your service.

  • @AnthonySmith said:
    Just refund it unless you have evidence of it being used and it does not qualify for a refund, in which case you will have your evidence already I guess? IP logs etc.

    Thanks for your valuable comment. I have given them IP logs and email logs and login logs. But is it possible to refund it anymore? Because the client has already disputed it.

  • This will happen from time to time. Best thing is to refund and nuke the server. Chances are the card is stollen anyway...

  • @chateaux said:
    This will happen from time to time. Best thing is to refund and nuke the server. Chances are the card is stollen anyway...

    My question is if it is possible to refund without paying Dispute fees?

  • AnthonySmithAnthonySmith Member, Patron Provider

    SolidxGaming said: My question is if it is possible to refund without paying Dispute fees?

    Depends if it is a dispute or a charge back, they are very differemt, the only people that can answer that are stripe.

  • Look, stripe will be stuck between a rock and a hard place. They are not conjuring up a fee out of nothing, they are also charged for the dispute by their acquirer for YOUR customer... Also they have to spend time and effort dealing with this which costs time / money because of something "you" initiated possibly without proper due diligence.

    If someone has disputed or charged back, this is part of doing business especially in the hosting space. Get over it, move on.

    One of the things we do to limit our charge backs is to whitelist customers before they can use specific payment gateway. Paypal, NETeller, Skrill, no need to white list since they have a very good screening process and anyone with any of those wallets are more than likely not going to charge back (unless their account has been compromised). And even if they do, it is simply a matter of a reversal of the charge and even the fees.

    I had to go through a six month process to convince our card provider to do business with us as a hosting company. They are terrified of chargebacks... because, like stripe, they can lose their acquiring bank... which means they can go out of business.

    To deal with this we have created a whitelist in WHMCS (really just a group), you can only use our credit card payment facility IF you are whitelisted. Who gets whitelisted, well we judge than on a one on one basis.

    Hope this helps.

  • @chateaux said:
    Look, stripe will be stuck between a rock and a hard place. They are not conjuring up a fee out of nothing, they are also charged for the dispute by their acquirer for YOUR customer... Also they have to spend time and effort dealing with this which costs time / money because of something "you" initiated possibly without proper due diligence.

    If someone has disputed or charged back, this is part of doing business especially in the hosting space. Get over it, move on.

    One of the things we do to limit our charge backs is to whitelist customers before they can use specific payment gateway. Paypal, NETeller, Skrill, no need to white list since they have a very good screening process and anyone with any of those wallets are more than likely not going to charge back (unless their account has been compromised). And even if they do, it is simply a matter of a reversal of the charge and even the fees.

    I had to go through a six month process to convince our card provider to do business with us as a hosting company. They are terrified of chargebacks... because, like stripe, they can lose their acquiring bank... which means they can go out of business.

    To deal with this we have created a whitelist in WHMCS (really just a group), you can only use our credit card payment facility IF you are whitelisted. Who gets whitelisted, well we judge than on a one on one basis.

    Hope this helps.

    Definitely helped a lot, thanks. Would you mind sharing what criteria you use to whitelist? Like do you ask them to submit a photo identity card or something of that sort?

  • rubiohigueyrubiohiguey Member
    edited July 2017

    @chateaux said:
    Look, stripe will be stuck between a rock and a hard place. They are not conjuring up a fee out of nothing, they are also charged for the dispute by their acquirer for YOUR customer... Also they have to spend time and effort dealing with this which costs time / money because of something "you" initiated possibly without proper due diligence.

    If someone has disputed or charged back, this is part of doing business especially in the hosting space. Get over it, move on.

    One of the things we do to limit our charge backs is to whitelist customers before they can use specific payment gateway. Paypal, NETeller, Skrill, no need to white list since they have a very good screening process and anyone with any of those wallets are more than likely not going to charge back (unless their account has been compromised). And even if they do, it is simply a matter of a reversal of the charge and even the fees.

    I had to go through a six month process to convince our card provider to do business with us as a hosting company. They are terrified of chargebacks... because, like stripe, they can lose their acquiring bank... which means they can go out of business.

    To deal with this we have created a whitelist in WHMCS (really just a group), you can only use our credit card payment facility IF you are whitelisted. Who gets whitelisted, well we judge than on a one on one basis.

    Hope this helps.

    That's what high risk merchant accounts are for. Don't go with the cheapest merchant account, go with merchant provider who understand your line of business and is not "scared of charge backs", because he understand your line of business, has other customers like you, and handles charge backs on a daily basis.

    You can start by googling high risk merchant accounts. In my experience, once you go through process with high risk merchant provider, the life will be easier and smoother for both of you, when charge backs hit you. It will not be a new thing for them and will be able to handle them better.

  • YuraYura Member
    edited July 2017

    @rubiohiguey said:

    You can start by googling high risk merchant accounts. In my experience, once you go through process with high risk merchant provider, the life will be easier and smoother for both of you, when charge backs hit you. It will not be a new thing for them and will be able to handle them better.

    Exactly. It costs a little bit more but worth it. If somebody hits me with a chargeback this guy hits them back. Goodfella.

    Thanked by 1Falzo
  • jarjar Patron Provider, Top Host, Veteran

    Deal with it all the time. On the page to submit evidence it asks for what they want. Give everything you can. Give too much rather than too little.

    Thanked by 1SolidxGaming
  • I would suggest to always fight the dispute.
    the main reason for that is to avoid paying the charge back fees (15$).
    and around 50% you will win the chargeback fees.

    also it will help keep your account in good standing as if you have too many non disputed chargebacks stripe will view your account as high risk and they may even suspend it.

  • @socheapvps said:
    I would suggest to always fight the dispute.
    the main reason for that is to avoid paying the charge back fees (15$).
    and around 50% you will win the chargeback fees.

    also it will help keep your account in good standing as if you have too many non disputed chargebacks stripe will view your account as high risk and they may even suspend it.

    Yea, I am definitely fighting it, and thanks for the advice.

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