Chargebacks magnitude
Hi,
I was wondering, how much chargebacks are other hackers facing with their companies, in terms of $ and % of revenue?
Are you taking any actions in fighting those chargebacks?
Hi,
I was wondering, how much chargebacks are other hackers facing with their companies, in terms of $ and % of revenue?
Are you taking any actions in fighting those chargebacks?
I haven't seen many charge backs, but I have had a few fraud charges. Stripe Radar helps to catch things and when it was fraud and didn't get caught I just refunded the charge.
I work mostly B2B and have a 30 day trial that doesn't require a credit card.
One thing I noticed was all the fraud charges where signing up and paying at the start. Which means I've great on boarding. Normal users don't they use the trial and then pay.
So I made a change I now disable the pay now options and replace it with a text "Hey you have just started trying it out, give us a try and pay later" type text.
Once the account is 10 days old it removes the text and allows them to pay. I use email reminders as the trial ends any way.
That stops fraud really they don't come back, most of the fraud I've seen has been people trying to test stolen cards rather than use my product which I now I think about it is a bit upsetting... :D
Less then 1% of revenue; not sure about the exact $ amount though. Having a clear and user friendly refund policy makes a lot of difference. We found it was extremely important to keep the % below 1, as once it goes higher than that, your merchant account faces additional scrutiny and the risk of being closed.
Were you able to keep chargebacks below 1% by simply changing the refund policy? I was under the impression that such a policy was only effective with legitimate customers, but not with fraudsters.
If I remember correctly, our charge back rate has always been below 1%, but I am certain the refund policy helps when it comes to genuine customers who aren't happy.
As for fraudulent charges, our prices are pretty high (cheapest is $199) and I think fraudsters, testing credit cards numbers, typically prefer lower amounts? Wether that's 100% accurate or not, we have seen very little fraudulent charges.
For fraud, just be vigilant, use the tools your payment processor offers and don't be shy about refunding a transaction that feels off. It usually takes a fairly long time for a transaction to turn into a chargeback, and if you can give a refund before it gets to that point, you've sort of won. Or at least you've lost in a way that's less likely to put your account in jeopardy.
This comment was deleted 7 years ago
Did you find that Stripe Radar provides sufficient protection? did you ever consider supplementing that with and additional solution?
Stripe Radar is quite good.
You may get a few chargebacks here and there, but if it is more than a handful the problem is not with your chargeback strategy. Sketchy marketing, product, whatever.
On the grand scale of indie projects this is usually way in the weeds and won't matter for a long long time.