Re:Stripe updates policy: free refunds and chargebacks
by pc on Wednesday December 19, 2012 @10:22PM
(#4946138)
As others have pointed out, a 7% chargeback rate is pretty problematic -- the card brands (Visa and co) will intervene long before then.
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Re:Stripe updates policy: free refunds and chargebacks
by line on Thursday December 20, 2012 @01:00PM
(#4948972)
It depends. Its not always just about the ratio of chargebacks but also volume.
So you might trigger some flags with the card associations if you say have the following
1) 1% chargeback ratio 2) 1% of revenue result in chargeback 3) Have like 50-100 (forget exact number) of chargebacks a month for like x consecutive months.
If you don't fix the problem, then bad things happen like additional fines....etc.
So for merchants with very low volume, a higher chargeback rate is sometimes permissible. Acquiring banks have their own risk assessment so they may allow it or may not.