But here's why small software entrepreneurs don't like them, in one of many possible vignettes. Over Christmas break in 2011/2012 I suddenly had an amount of money approximately equal to my rent payment get pulled from my bank account.
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So I spent some time investigating and it turned out a customer, who I thought was a long-established and happy customer, had filed chargebacks against us. For all of their usage. For six months.
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This is not a happy CS case to work over vacation, but I got in touch with them, and their CEO was mystified. So he called their external bookkeeper, and we found that a *relatively common* mistake had happened.
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The external bookkeeper didn't recognize our business name on the credit card statement, felt that that suggested we were defrauding the business, and immediately filed the chargebacks. We rectified this understanding over a three way call.
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I then got the CEO to give me an acknowledgement in writing that they were happy customers, asked the bookkeeper to call their bank and drop the chargeback, and got together a multi-page letter to the bank explaining the situation.
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Savvy founders already know the punchline: "You lost the disputes, didn't you?" Yep, of course with that setup I lost the disputes.
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Among the most fun mails you get when running a small Internet business is the "You've got money!" email and the absolute least fun is a chargeback out of the blue.
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And it would be bad enough if it were just losing the sale and the chargeback fee, but you get to go through multiple stages of will they / won't they before losing the chargeback, tying up founder cycles utterly pointlessly.
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Thus Chargeback Protection. Pay Stripe 40 basis points. Never think about this again. The end.
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Replying to @patio11
Any chance this will come for non-Checkout users? We just switched to an Elements integration rather than reimplement the new Checkout...
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Yep; we're testing it first with Checkout (where we can dynamically alter the flow at will for customers who are on the edge of being possibly fraudy), but if it works well we definitely want this to be usable across as many integrations as possible.
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Replying to @patio11 @sstrudeau
Will this ever be coming to Shopify Payments? So many ecommerce merchants (including us) slog it out with $35 "I want a refund" chargebacks...
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