Re:Stripe Chargeback Protection
by NotPaidToPost on Monday June 03, 2019 @10:01AM
(#20083129)
What he's saying is that currently doing nothing costs him less than what paying 0.4% to 'insure' transactions would, so why bother with insurance?
Ultimately established companies know how much chargebacks cost them and thus whether this product is worth it (= costs less).
Another thing to take into account is that if you're not using Stripe Checkout now, you will have to migrate to it, and since Dynamic 3DS will be used to filter and "secure" potential fraud, you will probably see a decrease in conversion rate.
0.4% on $2.5m is $10k a year. I realize "ten" is a bit more than "a few", but is Stripe's price point materially that far off from where you want it to be?
Said another way, I imagine that there are at least a few problems smaller than chargeback protection at your company that you throw $10k or more at just to make that problem go away... right? If so, this makes their price somewhere between reasonable to good.
I am really curious about your thinking on their price as it relates to other expenses in your company. Could you expand on that?