I’ve been recently hit with my first chargeback. The first thing I learned, you pay the chargeback fee no matter what.

The second thing I learned, you pay a fee if you intend to respond.

Basically, from what I understood, a chargeback is a lose-lose situations for the business. If the cost of the transaction is less than the two fees, it’s better to let chargeback settle in customers favor. Otherwise, you risk losing both fees, as the chance for winning a chargeback is very small (from what I learned).

I had a customer who used a “wrong credit card” (read: a corporate card that they had access to). I reached out to the customer asking them why they filed a chargeback, they told me “sorry, used the wrong card, the owner filed for chargeback”.

I didn’t bother to file the counter argument. Just blocked the customer, and ate the fee.

Enable 3D secure, this _might_ help with chargeback protection. And as someone said, enable Radar, it costs extra. There are also service that automatically refund the customer when they “intend” to file. Basically, stripe sends you a webhook when chargeback is about to arrive, so you can refund, this avoiding the chargeback fee.

I’d say if a chargeback does happen, the chances of winning =0, unless you can convince the customer to withdraw it. I realized this especially after my last dispute, where I was 100% sure I would win. But that’s it. I have no faith in the process anymore. What’s left is just the internal struggle, I always want to respond to something unfair and try to prove my case. But here it’s not worth doing.