Banned by stripe!

I mean, it sounds like you need to change your business model first and your payment processor second. I've been doing subscriptions for over two years now and only one person did a chargeback ever.

Did any of your customers complain about being charged? If so, did you issue a refund or just cancel them?

It looks like these thresholds are imposed by Visa, not Stripe. 1% does seem extraordinarily low, though... and Visa will be reducing it to 0.9%!

Does that mean that if just 1 of my first 100 customers who pay through Stripe disputes a charge, then I’d be kicked out? That seems crazy!
No matter how good a merchant I am, there’s always that chance of an upset customer going with the nuclear option!

I was planning to integrate Stripe into my sales process next month, but this certainly makes me pause!

I’d love to hear from someone at Stripe about this issue.

Why bother collecting credit card info upfront when "no credit card" has been proven to convert better for sales again and again?

The "gotcha" benefit of charging people who forget to cancel is outweighed by the risk of chargebacks from those who get pissed off that they forgot to cancel.

I have a client who used authorize.net without complaints. The fees may be higher.

Okay, so a few questions:

1. What business is this for? You have no profile product information, and no contact information. Your previous posts here allude to the space of either eCommerce/Amazon listing or some sort of influencer marketing. And a wild guess that it's not AmzBlitz, but maybe SellerSEO? Those spaces can be highly speculative, so you'll probably have to do a lot to educate and/or attract the right customers. Many of them will quickly label you a "scam" if they don't immediately get the lift they're expecting, do a chargeback, and complain to their 17 followers on Twitter.

2. You're offering a 30 day free trial then you automatically convert them into a paid plan... I'm guessing you're not notifying them with a series of drip emails before this happens. That would, like, make them run away, right? I used to think this. Well, generally users are more accepting if they're reminded of their impending payment, say a week out, 3 days out and 1 day out. Then you can honestly say you did everything you could to be up front with them.

Fast thoughts

1. Make sure you're targeting the right customers, ones who know what to expect of your product or service so you minimize the risk of falling short of expectations at the point you charge them.
2. Nurture those customers through drip campaigns to make them successful. If your business requires them to "do stuff", then make it as easy as possible so they get the best results. The most vocal opponents can also be huge cheerleaders if they're successful with your product.
3. Put a cancellation button on your site. If they come in 24 hours or so after you charge them, make it so they can automatically get a refund. If you're hesitant, just wire it up to a contact form so you can perhaps ask them why they're cancelling, then do it manually if they still want to.
4. Warn those customers at incremental times about when and what they'll be charged. I'd be somewhat miffed if a company I signed up for a trial to a month ago just charged me $99 but I haven't gotten a single email since I'd signed up. It looks sneaky.
5. Customer education, targeting and success depend a bit more on the market you're in, so you'll need to elaborate.

-- Jimmy

1. Try Stripe's competitors, like Square.
   2 & 3. Send email reminder to people - most companies do like this these days. Or send email to users to confirm the official transition into paid subscription -> if no confirmation, then no charge. Or don't do free trial. Or do the first month 50% discount to filter all the people who are only interested in free stuff... it will depend on how your users interact with your product. There are a lot of solutions. Maybe you can ask some users why they stop subscription.This will help.

As far as I know its a threshold % and you must have went over but 5 days does seem like a short time to react...let us know what you went with