We are using Stripe.com to collect credit card payments from our clients for the last 2 years. Although we have PayPal as a primary payment gateway for our website. But we thought, we should give this a try, so we have integrated Stripe gateway services on our website.
When we have joined Stripe there was no chargeback protection for Indian merchants, we still kept on. From the very first month, we have received 2 chargebacks from one of our clients who paid us via Stripe, previously we never had to face any chargeback while using PayPal. The reason? Unauthorized transaction! Who accepted the payment without any OTP verification? STRIPE.COM!!
We have lost both chargebacks because there was no merchant chargeback protection at that time. Plus, Stripe charged us Rs.1200 ($15) by the name of chargeback processing fees each time when any chargeback was getting created. Which of course not refunded to us.
Later they introduced chargeback protection for merchants. But still, there is a BIG problem. Stripe doesn’t have any resolution center like PayPal, the clients who create chargeback, they actually create by their financial institution end. Stripe just ask us to submit some proofs on their dashboard, which they just forward to the client’s card provider. So, there is a high possibility of a biased decision by the client’s card provider.
We almost lost very chargeback cases due to this. We found this extremely biased and they don’t even look at our proofs, no matter what you submit.
We have also noticed Stripe policies are a little fishy, like 2CheckOut. Today, we have noticed they have refunded some big amounts to a client automatically without our permission, they did not even bother us to email once and inform us about the refund.
The client signup on our platform and ordered hosting plans from us. No chargeback and nothing. Their system automatically did this. Did you hear thing kind of things happened with PayPal? No right! But anything could happen with Stripe.
Their fraud detection system is not strong, they mostly accept stolen cards without OTP, they will charge in the name of the chargeback processing fee, they will refund your revenue without your permission.
What’s wrong with Stripe?
We have contacted Stripe support via email, and their specialized experts are still looking into this case from the last 7 days. They are also confused, to why their system behaved like this.
UPDATE: 14 days, still no resolution. What a slow support.
Who will be liable to pay the loss? Are they even care about their merchants? Do they value small businesses? We don’t think so.
Recently, we have noticed there are thousands of other merchants have posted reviews online about Stripe’s fishy policies. Look here: https://www.trustpilot.com/review/stripe.com