The intent of this article is to guide Merchants on how to correctly process chargebacks through the merchant service provider.
Notification
Chargeback notifications are sent via email to the email address on file with Stripe.
Directions
- Customer calls the bank to file a dispute. The disputed charge will reflect in Dashboard.
- Stripe credits back the charge to the customer.
- Stripe will notify Merchant about the dispute and will be asked to send evidence to retrieve the charge.
- Merchant calls customers to explain the charge.
- Stripe reviews if the evidence is sufficient and will pass to the credit card issuer. Evidence can include Weblogs, email communications, shipment tracking numbers, delivery confirmation, proof of prior refunds, or replacement shipments.
- Credit card issuer will conduct an investigation. If the charge is valid, the amount along with the dispute fee will be credited back to Merchant account.
Resources
https://stripe.com/docs/disputes/how-disputes-work
https://stripe.com/docs/disputes/withdrawing
https://docs.stripe.com/disputes/responding
Timeline
- Day 1 (Feb 28) Customer called the bank to file a dispute.
- Day 10 Call between SaR and customer explaining charges.
- Day 11 SaR sent the customer list of charges on the card. The customer was advised to call the bank again to void chargeback request
- Day 90 (May 28) Dispute was canceled. Charges were credited to SaR Stripe account.
Initial Email from Stripe example
Stripe: Payment disputed because credit not processed. The cardholder disputed this charge. The amount plus a dispute fee will be deducted from your account.
Response time
One month is the usual amount of time required to investigate a chargeback. Stripe reports back via email with the result of the chargeback.
Notes
Successful chargebacks are routed to the Stripe account and reprocessed according to initial amounts.
Next Email from Stripe example
Stripe: We have good news for you! The disputed payment from (date) was successfully resolved in your favor by your customer’s bank or credit card company. This means that (amount) and the dispute fee will be returned to your bank account in the next few days. No further action is required.