Payment Disputes & Chargebacks

A payment dispute (chargeback) occurs when a customer contacts their bank or credit card provider to reverse a transaction. The bank temporarily refunds the customer while it investigates.

If the dispute is resolved in the customer's favour, the business loses the payment and, in some cases, may also be charged a dispute fee.

Customers can dispute payments for several reasons, including:

• Unauthorized transaction – The customer claims they did not make the purchase.
• Item not received – The customer states they never received their order.
• Product not as described – The customer believes the product differs from what is advertised.
• Duplicate charge – The customer thinks they were charged more than once.
• Subscription or billing issues – The customer forgot about a recurring charge or had trouble cancelling.

Disputes can negatively impact your business in several ways:

• Financial loss – If the dispute is not resolved in your favour, you lose both the payment and the product.
• Chargeback fees – Stripe charges a dispute fee of $15-$25 per case.
• Higher processing fees – A high dispute rate (above 1% of transactions) can increase payment processing costs.
• Account restrictions – Stripe may delay payouts, increase fees, or suspend your account if disputes occur frequently.

• Enable CVV and address verification in your Stripe settings.
• Set fraud detection rules in Stripe Radar to flag high-risk payments.
• Be cautious of large, unexpected orders from new customers.
• If an order seems suspicious, contact the customer for verification before fulfilling it.

• Always use a trackable shipping method and provide tracking numbers to customers.
• Choose reliable shipping providers to avoid delays.
• Set clear expectations for delivery times and communicate any delays immediately.

• Use accurate product descriptions and high-quality images.
• Avoid misleading titles or exaggerated claims.
• Display a clear return and refund policy on your store.

• Please review your payment transactions regularly to ensure customers are not charged multiple times.
• Communicate subscription terms and allow customers to cancel easily.
• Send reminder emails before subscription renewals.

• Provide excellent customer service by responding promptly to inquiries.
• If a customer has an issue with their order, offer a refund or exchange before they file a dispute.
• Ensure your refund and return policies are clearly stated on your website.

If a dispute is filed against your business, you will receive a notification in your Stripe Dashboard. You have a limited time to respond with supporting evidence.

1. Review the reason for the dispute in your Stripe Dashboard.
2. Gather evidence to support your case, such as:
   • Order confirmation details
   • Tracking information
   • Customer communications
   • Product descriptions and images
3. Submit a response through Stripe using the Dispute Response Tool.
4. Contact the customer directly to resolve the issue, if possible.
5. Decide whether to refund – In some cases, refunding may be more cost-effective than contesting the dispute.

• Keep detailed records of all transactions, shipping details, and customer interactions.
• Use secure payment methods and monitor unusual purchasing activity.
• Set up fraud prevention tools in Stripe Radar.
• Be transparent with pricing, product details, and refund policies.
• Maintain strong relationships with customers to minimize complaints and refund requests.

If you have questions about a dispute or need help implementing fraud prevention strategies, you can:

• Visit Stripe’s Dispute Resolution Guide
• Contact Dash to Cart Support for assistance

Following these best practices can reduce payment disputes, protect your revenue, and build long-term customer trust.