Disputes

Disputes/chargebacks can put a large strain on your ecommerce business and cause regulatory headaches if not handled properly.

Disputes can occur for various reasons, but usually they are due to a customer using a stolen credit card or being dissatisfied with a product. For more information on the specifics of a dispute read the Stripe documentation.

When a dispute occurs, Stripe charges a non-refundable $15 dispute fee. Even if you win the dispute, Stripe will not return the dispute fee. To take advantage of bckt’s measures to protect you from disputes, take a look at our Fraud Prevention guide.

Managed Disputes

To relive you of the headaches of replying to and handling disputes, bckt will provide manage them for completely free.

If you would like us to handle the dispute:

1. Create a ticket in the support center.
2. In the ticket, include the payment ID the dispute is associated with, and the dispute ID.
3. For the ticket severity, choose according to how many days the Stripe dashboard shows you have left to respond.
4. We will leave the ticket open, until the dispute has been decided by the Card Network.

For managed disputes, you will still be responsible for paying out any dispute losses and fees.

Self-Managed Disputes

Due to the complicated proccess of responding to disputes, we highly recommend using our manged dispute proccess.

Dispute types can vary between fraudulent purchases all the way to duplicate charges and there is a vastly different method of replying to each.

Before submitting evidence for a dispute, always reach out to the customer to see why they filed a dispute.

Below are guides to respond to each dispute type:

Credit not processed

This dispute category means the customer returned the product but did not receive a refund.

To have the best chance at winning this type of dispute, submit the following:

• Refund Policy
• How you provided the refund policy to the customer before they purchased
• An explaination why the customer is not entitled to a refund
• Any communications you had with the customer

Duplicate

For this dispute, first check if there was indeed a duplicate charge. If there was, reach out to bckt.net customer support as soon as possible.

If the customer only has one charge, select All fields in the Stripe dispute response dashboard and explain that there is only one charge associated with the customer.

It is also a good idea to provide some supporting information on what the customer ordered and how it was delivered.

Fraudulent

Fraud disputes are by far the most dificult type of dispute to overturn. To first prevent fradulent disputes, first view our fraud protection guide.

To win a fraud dispute, you need to prove in some manner that the cardholder is liable for the transaction. This does not always mean the specific transaction was authorized by the cardholder.

For example, the Bank of America service agreement states:

Transactions that you or someone acting with you initiates with fraudulent intent are also authorized transactions.

To have the highest chance of winning the dispute, first provide all access logs of the product and in the explaination, prove that the cardholder is liable. This means checking if the purchaser was related to the cardholder, if the purchaser’s ip address matches the billing address, or if the access log ip matches the purchase ip.

Ultimately though, the cardholder’s bank makes the descision and will frequently side with the cardholder.

Due to this reason, if you receive an early fraud warning, we recommend refunding the purchase to avoid the dispute fee.

We also recommend creating a support ticket and reporting the purchase so we can ban the customer and ip address from any future purchases.

General

Contact the customer to discover why the dispute was filed. If you do not receive a response, submit proof of delivery such as access logs.

Product not received

First contact bckt.net support and we will reach out to the customer on your behalf to debug why they didn’t receive the product. If we do not receive a reply or the dispute is not withdraw, we will provide you logs of delivery for your dispute.

Include any access logs when responding to the dispute.

Product unacceptable

Provide screenshots of your product that clearly list its features and description. Also provide any customer communications that you may have.

Also provide you refund policy.

Unrecognized

Provide acess logs of the customer using the product. This dispute will usually only ever occur if your Stripe account settings have a different business name and descriptor than what you display on your website.

Note

Major card networks offer direct arbitration in disputes, but this carries a $500 fee if they decide you are in the wrong. Stripe does not curerntly support arbitration.

Conclusion