How does Stripe handle chargebacks?
We’ll work with you and the customer’s credit card company to resolve chargebacks. Our aim is to make this process as simple, straightforward, and business-friendly as possible.
If and when a chargeback occurs, Stripe receives a notification of the disputed charge and we’ll send you an automated email with the details. If you’d like to respond to chargebacks on an automated basis, you can also set up a webhook (i.e. automated notification to your server).
In most cases, the cardholder’s bank immediately refunds the transaction (the exceptions are inquiries and retrievals); accordingly, we will deduct the disputed amount and fee from your account the day after a dispute is received. The disputed amount is refunded to your bank account if the dispute is resolved in your favor.
Stripe offers a guided evidence submission flow right from your dashboard to help you to provide all of the text and images you feel are appropriate. If you have a piece of evidence you think the bank might want to see, submit it right away rather than offering to include it if necessary.
To respond to the chargeback, just visit the Disputes section of your dashboard. From there, you can click on the charge you’d like to respond to and view more information about why that charge has been disputed. Clicking the “Respond to dispute” button will allow you to enter your evidence that the charge is legitimate.
Once you have provided evidence, it will generally take the issuing bank 60-75 days to reach a decision regarding the case.
In the case of SEPA Direct Debit payments, any chargebacks within an eight-week period are final and automatically honored. Unlike credit card disputes, there is no appeal process. For information on SEPA Direct Debit disputes, take a look at the SEPA Direct Debit documentation.
The evidence you’ll want to submit will vary depending on the specific case. Web logs, customer service emails, shipment tracking numbers and delivery confirmation, proof of prior refunds or replacement shipments, and so on, can all helpful. You’ll want to provide evidence appropriate to the type of dispute—we offer suggestions here. Stripe will submit any information you can provide to your customer’s credit card company, and keep you posted afterwards.
Note that it is safe to assume that requests to call a contact number, click through to further information, and so on, will not be fulfilled by the institution that is evaluating the dispute. Banks will not follow external links to view your website or files you’ve uploaded elsewhere, so it’s important to include all evidence at your disposal in your initial evidence submission.
It is extremely important to provide evidence for every dispute you hope to win, even if the cardholder/customer has told you they will withdraw the dispute.
The best way to deal with chargebacks is to minimize their likelihood in the first place! Many chargebacks are the result of credit card fraud; a chargeback in the “fraudulent” category means that the transaction is one that was not approved by the legitimate cardholder. You can learn more about spotting and preventing fraudulent transactions here: Avoiding fraud and disputes.
Stripe charges $15 per chargeback* (note: this fee is dependent upon the currency in which you receive funds - e.g., if you charge in USD and have those funds converted to GBP, EUR or CAD, the chargeback fee will be denominated in the converted currency), though this fee is refunded if the issuing bank decides in your favor.
*Exception: in Australia, the fee is $25 AUD - the elevated fee is not Stripe’s, but the exact amount charged by the Australian bank for chargebacks.