Disputes can be a challenging aspect of running an online business. When a customer disputes a charge, the bank typically aims to protect their client, often leaving merchants to defend their case. While Stripe doesn’t directly influence the bank’s decision, following best practices can significantly improve your chances of winning a dispute. Here’s how to effectively respond and increase your odds of a favorable outcome.

Understanding Dispute Likelihood and Radar Predictions

Your chances of winning a dispute depend on several factors:

• Dispute Type: Certain dispute types may qualify for Visa CE 3.0 evidence, improving your chances.
• Strength of Evidence: Submitting strong, relevant evidence is crucial.
• Payment and Purchase Type: The likelihood varies for debit, credit, digital wallet payments, and purchases like physical goods or services.

When to Accept a Dispute

In some cases, accepting a dispute might be the best option, especially if:

• The customer’s claim is valid.
• You agree with the refund request.
• Resolving the dispute otherwise would not be cost-effective.

Remember, disputes incur fees even if accepted, so prevention is key.

Best Practices for Responding to Disputes

1. Submit Evidence for Visa CE 3.0 Disputes

If your dispute qualifies under Visa’s Compelling Evidence 3.0 rules, submit all relevant transaction history provided by Stripe. This can significantly improve your chances of overturning the dispute.

2. Provide Relevant, Concise Evidence

Card issuers review thousands of disputes daily, so clarity is essential. Tailor your evidence to address the specific reason for the dispute. For example:

Example Response: “Jenny Rosen purchased [product] on [date] using a Visa credit card. The product was shipped on [date] to the address provided by the customer and delivered on [date], as shown in the attached tracking file.”

Key Tips:

• Use a neutral, professional tone.
• Include only relevant excerpts from terms of service or communication.
• Redact unnecessary content to keep your response concise.

3. Include Proof of Customer Authorization

Fraudulent disputes make up a significant portion of cases. Provide evidence that proves the customer authorized the transaction:

• AVS (Address Verification System) matches
• CVC (Card Verification Code) confirmations
• Signed receipts or contracts
• IP address matches for the billing address

Stripe automatically includes AVS, CVC, and IP address details when available, but additional evidence like 3DS authentication strengthens your case.

4. Prove Service or Delivery

For disputes related to non-delivery or unsatisfactory goods, provide:

• Physical Products: Proof of shipment and delivery with the full delivery address.
• Digital Goods: Logs showing content downloads or service usage.

If the delivery address differs from the billing address, include documentation explaining the discrepancy (e.g., gift purchases).

5. Highlight Terms of Service and Refund Policies

Attach proof that the customer agreed to your terms of service at checkout. Include a clear screenshot showing the terms and highlight the relevant policy (e.g., cancellation or refund terms). Avoid submitting the entire document; focus only on pertinent sections.

6. Combine Files of the Same Evidence Type

To streamline the review process:

• Consolidate communication (emails, texts, call transcripts) into a single file.
• Reduce file size and page count by:
  • Using smaller fonts and single spacing.
  • Cropping images or screenshots to relevant sections.

7. Format Documents and Images for Clarity

Ensure your submissions are legible and professional:

• Use a 12-point font or larger.
• Orient documents in portrait format.
• Use bold text, callouts, or arrows to emphasize key details.
• Submit high-quality images in PDF, JPEG, or PNG format (max 4.5MB file size).

8. Address Partial Refund Disputes

If a customer disputes a payment after receiving a partial refund, include evidence of the refund in your response. Provide screenshots and dates to show the credit issued.

Dispute Prevention Tips

Minimizing disputes is better than addressing them after the fact. Consider these practices:

• Clearly communicate policies and terms of service.
• Use fraud prevention tools like Stripe Radar.
• Ensure prompt and reliable delivery or service.
• Maintain open communication with customers to resolve issues directly.

Final Thoughts

Winning disputes requires preparation, clarity, and strong evidence. By following these best practices and leveraging Stripe’s tools, you can significantly improve your chances of overturning disputes and protecting your revenue.