Stripe offers chargeback protection service

Tuesday 4 June 2019 00:40 CET | News

Stripe has announced it is now offering a chargeback protection service, aiming to prevent businesses from incurring costs from fraud disputes.

The chargeback service is built on Stripes machine learning-based fraud prevention tool Radar, and it offers automatic reimbursement for the cost of a disputed charge and any associated fees. The company’s new service will be available to companies in the US and Europe using the latest version of Stripe Checkout. Moreover, pricing starts at 0.4% per transaction on top of Stripes existing transaction fees.

Moreover, chargebacks happen when a cardholder makes a claim to their bank or credit card company that a payment made on their card was fraudulent. The business that accepted the payment originally is required to repay the full purchase amount, as well as a chargeback fee. Stripe posits that chargebacks can cost businesses more than double the original disputed amount when factoring in lost revenue, penalty fees, and evidence collection.

Also, the new chargeback service is associated with Radar, Stripes machine learning fraud prevention platform that analyses hundreds of different signals about each charge that happens on Stripes payments platform. Radar allows Stripe customers to submit suspected fraudulent activity for review. The chargeback service is Stripes way of standing behind Radars fraud detection capabilities.

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Keywords: Stripe, chargeback, protection service, fraud prevention, RADAR, payments , ML, reimbursement, fees, transaction, cardholder, bank, credit card, payments , fraud detection
Countries: World