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ECT News Community   »   E-Commerce Times Talkback   »   Re: Stripe Offers SMBs Chargeback Fraud Relief

Re: Stripe Offers SMBs Chargeback Fraud Relief
Posted by: Jack M. Germain 2019-06-04 14:58:35
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Payment processing company Stripe has launched Chargeback Protection, a machine learning-based system to limit the impact of fraudulent credit card transactions on merchants. A chargeback is a demand by a credit card provider for a retailer to make good on a fraudulent or disputed transaction by repaying the full purchase amount plus a chargeback fee. Resolving fraudulent disputes can take up to three months. Until then, disputed funds are unavailable to the business, even if it ultimately wins the dispute.

Re: Stripe Offers SMBs Chargeback Fraud Relief
Posted by: jackmgerm 2019-06-04 15:09:35 In reply to: Jack M. Germain
I received via email the following clarification from one of my sources in this article. Here is the verbatim update from Robert Livingstone,
President & Founder of

"I found your article to be very well written with a great variety of sources. I wanted to make one clarification to my comments as I could have worded an answer better. When I spoke about increased costs, I meant that the 40 basis points cost from Stripe is based on theoretical data calculating their risk. There is a great possibility of the 40 basis points cost going up to 50, 60 or even 1% if too many high-risk
merchants compared to low-risk merchants in the program. In this scenario merchants will have budgeted 40 basis points for this service
without any guarantee that the pricing stays in place for any period of time."

-- Jack M Germain at ECT News Network
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