Would Stripe tolerate %2 Charback if We're leaving more than enough money in the account to cover those disputes?

[moneyGeek]

As the title says, if let's say we're making $100k+/month and our chargeback is ~2%, let's say we always leave at least $10k in our stripe, will stripe still close our account for the high chargeback rate even though we have enough funds to cover the risk of dispute?

Thanks.

 

[chrisgerth]

Leaving more money in stripe wont make a different. First of all this money you‌ keep there does not have same status as a proper rolling reserve. But most importantly‍ if you deviate so much from the median/average vendor they will not bother dealing with⁠ you. If you can not keep your chargeback rate within normal range who can guarantee⁤ it wont go completely off the charts?

 

[369]

no since visa/mastercard will demand high penalty fee for such high chargebacks.

 

[EliasIT]

No, if you reach their maximum allowed percentage chargeback ratio they will terminate your account.‌

Try bring down your chargeback ratio!

 

[moneyGeek]

Thanks everybody for the answer, apparently that's not possible.

 

[aage]

You may improve your scrubbing of each transaction and do some verification. Lot's can be‌ done, there are also services available to help you bring down your chargeback ratio.

 

[hankrearden]

Would you mind recommending one?

 

[polonieth]

Sales volume is irrelevant. It's⁤ the number of transactions/chargebacks. However, Visa and Mastercard calculate them slightly differently.

2% is never⁣ going to work. Anything above 1% will not be sustainable, and you'll be flagged/monitored.

How many transactions to generate 100k in revenue?

 

[DocBrazil]

Also interested in services that can dilute the ratio. Please expand⁠ on this.

 

[Spinat]

Simply subscribe to some of the many credit card Anti Fraud companies services and call‌ each of your card payers!

 

[Dandyline]

Just do load balancing and add micro subscriptions to drive up transactions.‍

 

[JohnLocke]

Here are a few suggestions for you:
https://datadome.co/landing-online-fraud-protection-seahttps://sift.com/https://shield.com/
And some general information that‌ you want to read about
https://www.cardfellow.com/blog/tools-for-protecting-your-business-from-credit-card-fraud/

 

[DocBrazil]

Thank you for the reply - however please excuse my ignorance on this‌ - what are load balancing and micro subscriptions? I don't find any explanation searching the‍ site.

 

[Dandyline]

Spreading transaction through multiple MIDS and adding 1000 own subscriptions with⁠ pre paid cards that takes 0.1 cent per day or something.

 

[shhhitsme]

Dandy is spot on! You will probably find they are called⁠ Friendlies.

 

[EliasIT]

could possibly work‍ if they don't figure that out with their anti fraud systems in place.

 

[twgtrading]

I heard there are companies that help you bring your CB⁠ rates down. You have any recommendations? Or we can just run some volume personally via⁤ some VCC to increase the transactions and volume to bring down the ratio?

 

[Wasay]

No you need to lower down the chargeback ratio

 

[aniglo22]

You should use payment cascading . And also you can dispute chargebacks if you provide‌ enough proof , there are automated tools for it .

 

[EliasIT]

What tool would‌ convince a bank of not enforcing the dispute from a card holder?