Payments platform Stripe recently announced the launch of Chargeback Protection, which is described as a new service built on Stripe’s machine learning-based fraud tool Radar, that prevents fraud and protects sales against future chargebacks. The platform further explained the new service and what users can expect by stating the following:
“A chargeback happens when a cardholder makes a claim to their bank or credit card company that a payment made on their card was fraudulent. When a chargeback occurs, the business to which the payment was originally made is required to repay the full purchase amount, plus a chargeback fee. With Chargeback Protection, businesses on Stripe are not only safeguarded against fraudulent charges, but are also automatically reimbursed for the cost of a disputed charge and any associated fees—saving them time, money, and resources.”
Chargeback Protection helps businesses by doing the following:
- Protect sales against chargebacks: Stripe uses Radar’s machine learning technology to prevent fraud. If a charge is later disputed, Stripe will reimburse the disputed amount plus any chargeback fees.
- Skip evidence collection: With Chargeback Protection, there’s no need to submit any evidence in the case of a dispute; the reimbursement from Stripe is automatic.
- Maximize revenue while minimizing fraud: Chargeback prevention can often come at the expense of blocking legitimate revenue.
- Improve cash flow: Chargeback Protection means businesses can have smoother, more predictable cash flow.
- Streamline setup: For businesses using the latest version of Stripe Checkout, Chargeback Protection requires only a single click to turn on.
Eeke de Milliano, Product Manager for Stripe Radar and Chargeback Protection, went on to add:
“Over the last few years, a top request from Stripe’s users—no surprise—has been for help with fraudulent chargebacks. Chargebacks beleaguer internet businesses: they’re unpredictable, hard to win, and hurt cash flow since disputes can lock up legitimate funds for months while the process plays out. Stripe Chargeback Protection removes that burden entirely, so companies can focus on everything else they need to do to grow their business.”