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The topic of whether a particular business will get better auth rates going through a local gateway is a complicated one (that is probably true of many businesses and not true of many businesses); we’re working on making this sort of thing unnecessary for most businesses to think about. Philosophically, centralizing this sort of work at Stripe makes a lot of sense to us; we can deploy more engineers against auth rates than any Stripe customer could because we have a much larger surface area for improvement than any customer does.

Many of our users want something which works out of the box, and they’re the target audience for Checkout. If you want to rigorously test the behavior against your sophisticated understanding of conversions in your own business, that’s awesome; you can see exactly which transactions we flagged for being on the fence using the API.

It’s always a balancing act to make things which work out-of-the-box for someone’s first business on it’s first day and still have the power and configurability expected by extremely sophisticated operators. Getting this balance right is extremely important to us.

Comment · 7 years ago

It’s included! And, in fact, we just launched the API publicly.

https://stripe.com/docs/disputes#early-fraud-warnings https://stripe.com/docs/api/radar/early_fraud_warnings

As for the percentage of false negatives, it really depends on your business. We definitely recommend looking at your own early fraud warning and disputes history to determine what makes the most sense for you.

Comment · 7 years ago

(PM for Chargeback Protection.) Yep, Chargeback Protection only works with the new Checkout so we’ll only protect any transactions that are processed through the new Checkout. You can keep your existing integration for iOS and Android, but those charges will not be protected.

Comment · 7 years ago

Card issuers are often able to detect that a transaction is fraudulent before it is disputed, and when this happens, they will send us a notification. These notifications are commonly called TC40s (Visa) or SAFE reports (MasterCard). On average ~60% of early fraud warnings end up being disputed, and most disputes have an early fraud warning (though there’s a wide range depending on your business). If you refund these charges before they become disputes, you can avoid the dispute entirely. It doesn't solve all dispute problems but it can be pretty effective. I’m happy to take a look at your account to calculate what percent of disputes have an early fraud warning.

Comment · 7 years ago

(PM on Chargeback Protection here.) We are rolling out with our new Checkout first because it allows us to tweak the checkout flow and e.g. send a payment which we’re on the fence about to 3D Secure (3DS) but let obviously good payments go through without 3DS. We are also exploring ways to expand Chargeback Protection to other integration options!

Comment · 7 years ago

We can send you a webhook on every dispute being created (https://stripe.com/docs/webhooks) and you could use the API to either refund the underlying charge or accept the dispute (and refund the underlying charge).

We can also give you access to receiving early fraud warnings from issuers (like Visa TC40s). These are notifications from the issuers that the customer is likely going to dispute a charge. If you're happy proactively refunding customers you could do so without incurring the dispute fee (though TC40s and the MasterCard equivalent can still count towards monitoring programs). Let me know if you're interested ([email protected]).

This gets you most of what you want. The subtleties:

1) The credit card ecosystem wants to discourage chargebacks as a routine mechanism for canceling, and so there will still be a fee assessed by the networks and hence by us.

2) The credit card networks have thresholds for how many chargebacks a customer can be doing while making responsible use of their rails, and if one routinely exceeds that, they will give a very serious warning to change business practices and, if one’s numbers do not improve, they will terminate one’s access to the rails. We have substantial experience with B2B SaaS businesses and it is _extraordinarily_ unlikely that a B2B SaaS business comes close to those thresholds, even after accounting for unfortunate user behavior.

Comment · 7 years ago

(PM on Chargeback Protection here.) We’d like to extend Chargeback Protection to all Stripe countries eventually. Stay tuned!

Comment · 7 years ago

(I work at Stripe on Radar.) We see Chargeback Protection mostly as a way to prevent our users from burning too much founder attention doing chargeback management. Managing abusive use of the credit card rails, both by fraudulent businesses and by people attempting to defraud legitimate businesses, is something that we have substantial experience with. We have had years to tune our machine learning models; this both helps every user of Stripe (through blocking transactions likely to be fraud-y) and gives us the confidence we need to roll out a new product like Chargeback Protection widely.

We will, of course, monitor it during the rollout and adjust as we go.

Comment · 7 years ago

Thanks for the feedback! Our first priority at the moment is seeing how this performs and then rolling out additional integration options, but we might explore giving users additional control over the mechanics as time goes on.