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Stripe is friendly to “friendly fraud”

gingerlime.com

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Re: Stripe is friendly to “friendly fraud”

#21

Post by SpicyLemonZest »

bberenberg wrote: post #14

I got hit with a fraudulent chargeback (claim was the purchase was unauthorized and the person showed up in person to a class) and it was doubly bad because they paid via Link which means that Stripe actively verified them via 2FA. Can someone explain to me why Stripe (or a competitor) doesn't offer a setting "refuse transactions for cards that have filed > x chargebacks with merchants this year"?

I don't know this is the reason, but if I were asked to build such a system, I'd be pretty worried that it constitutes a consumer report under the terms of the Fair Credit Reporting Act.

Certainly I wouldn't want the inevitable news drama about it. "I'm just a poor innocent grandma, I'm a trusting person when it comes to Facebook ads, and Stripe punished me for getting scammed by banning me from half the stores on the Internet!"

Re: Stripe is friendly to “friendly fraud”

#22

Post by bberenberg »

cperciva wrote: post #18
bberenberg wrote: post #14

I got hit with a fraudulent chargeback (claim was the purchase was unauthorized and the person showed up in person to a class) and it was doubly bad because they paid via Link which means that Stripe actively verified them via 2FA. Can someone explain to me why Stripe (or a competitor) doesn't offer a setting "refuse transactions for cards that have filed > x chargebacks with merchants this year"?

claim was the purchase was unauthorized and the person showed up in person to a class Certainly a person showed up in person to a class, but how do you know it was the person whose credit card was used?

It matched their LinkedIn photo.

Re: Stripe is friendly to “friendly fraud”

#23

Post by mriet »

bberenberg wrote: post #14

I got hit with a fraudulent chargeback (claim was the purchase was unauthorized and the person showed up in person to a class) and it was doubly bad because they paid via Link which means that Stripe actively verified them via 2FA. Can someone explain to me why Stripe (or a competitor) doesn't offer a setting "refuse transactions for cards that have filed > x chargebacks with merchants this year"?

Their business model is to allow as many possible "valid" transactions, not to serve their "clients". They're a PSP...

Re: Stripe is friendly to “friendly fraud”

#24

Post by Dylan16807 »

sbierwagen wrote: post #4

Stripe obviously records data around friendly fraud, (At minimum they implement Visa Compelling Evidence 3.0 https://support.stripe.com/questions/how-does-stripe-support... ) and since you did not include screenshots of the messages sent by Stripe support I suspect they were saying something carefully noncommittal and legally compliant to get you to go away, which then got spun into an outraged blog post.

> I suspect they were saying something carefully noncommittal and legally compliant to get you to go away

If their total dismissal of the problem is itself deception, that's not a particularly big improvement!

Re: Stripe is friendly to “friendly fraud”

#26

Post by jagged-chisel »

bberenberg wrote: post #22
cperciva wrote: post #18

Earlier quoted context omitted.

claim was the purchase was unauthorized and the person showed up in person to a class Certainly a person showed up in person to a class, but how do you know it was the person whose credit card was used?

It matched their LinkedIn photo.

[flagged]

Re: Stripe is friendly to “friendly fraud”

#27

Post by shawnz »

shash7 wrote: post #10

I run a saas and we get this every now and then. As a rule of thumb, when you get a chargeback you need to completely ban the customer from your db. This includes: - card ban - email address ban - fingerprint their access and ban This will save you a lot of hassle when they try to signup/buy your product again and cause you the same amount of grief.

You'd better be promptly responsive to legitimate customer support inquiries if you are going to have a policy like that

Re: Stripe is friendly to “friendly fraud”

#28

Post by zuzululu »

My suggestion is to just ban specific regions or countries and you can cut 80% of this fraud.

I'm not going to name those countries outright but you should never ever be launching globally until you have these safeguards in place.

Once you are known to be vulnerable to a certain scheme, it quickly becomes known in that region/country.

Again and again I'm reminded why high trust societies remain high trust and why low trust societies rarely transform into high trust society.

Re: Stripe is friendly to “friendly fraud”

#30

Post by stego-tech »

At this point I’m fairly convinced Stripe is Paypal 2.0, at least in spirit:

* Turns a blind eye to misdeeds on its platform

* Locks out adult creators/vendors after taking their money

* Is ubiquitous, but not well liked

I love that Stripe changed the game of fintech and made it accessible to more parties in a programmatic way, but I find myself repeating “avoid Stripe” to a lot of folks asking me for advice on dealing with payment nowadays for those reasons.

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