I am curious if Apple Pay has the same chargeback issues for merchants.
The madness of SaaS chargebacks
11–20 of 117 posts
Re: The madness of SaaS chargebacks
#12TL;DR: We run multiple SaaS products on Stripe. Even with clear renewal reminders, invoices and easy cancellations, some users skip refunds and go straight to chargebacks. A $10 payment ended up costing us $43.95 recently. Banks almost always side with the cardholder, and the only reliable “win” I’ve seen is when the customer withdraws the dispute themselves. So here’s my question to the community: What’s really goin…
This could also be from fraud. Card testing for example, where they aim to figure out missing card details. Or some other nefarious use of stolen card details.
Yes, we’ve had a few cases where people tried card testing through us. But we noticed quickly and introduced the proper limits. In general, if you redirect the user to Stripe Checkout after clicking Subscribe button, all of that should be handled by Stripe itself and not affect your account. I guess ))
But this is a slightly different story. With chargebacks, almost every time it was just a customer not wanting to admit fault. What’s strange is that they could have simply written to us and asked for a refund. But I guess they realized they were in the wrong, so instead of contacting us, they went straight to their bank.
Re: The madness of SaaS chargebacks
#13This is something good about the Apple AppStore, they handle the chargebacks and no ridiculous fees incurs(When a refund request is initiated, they will send you a consumption info request over API to ask for your opinion but ultimately its their decision and its handled by them). That's why I don't have a problem with Apple's cut as they handle something that's actually quite complicated and annoying. Their control over the content(what's allowed) is another story though, of course.
Re: The madness of SaaS chargebacks
#14I got an Ad for a company that aims to reduce your chargebacks, I wont say who it was. Who knows if it works.
There's quite a few promising less cancellations, less churn but I haven't seen less chargebacks yet. Usually they tell you to give customers offers during cancellation, e.g. a discount, months free, anything so they don't click the final "cancel now" button.
Re: The madness of SaaS chargebacks
#15I am curious if Apple Pay has the same chargeback issues for merchants.
I know for sure that if users start filing complaints against you with Apple, they can simply ban your account entirely and for long. Some companies never recover from that and end up shutting down.
Re: The madness of SaaS chargebacks
#16> What I don’t understand is why some people can’t just reach out and request it — instead of going straight to a chargeback.
Customers don't want to "reach out" if it means hunting deep in their account settings to find the cancel button, or calling a number which may or may not lead them through an endless phone tree to waste 5 minutes talking with someone on the retention team reading from a script.
People don't remember they signed up.
They can't remember how to log in from a different device to cancel.
It's easier to use their credit card app to dispute the charge.
The company name is different than the product name - even a slight difference may indicate a scam, like all of these highway toll scams using a slightly different domain name.
A worker or family member signed up using someone else's card, and that person has no idea what the charge is for.
People expected one thing from your SaaS product, and got something else that they are not willing to pay for.
They rarely check or read their email.
Your account reminders are going straight to spam.
The communications around the product, pricing, or requirements was lacking.
Re: The madness of SaaS chargebacks
#17This is something good about the Apple AppStore, they handle the chargebacks and no ridiculous fees incurs(When a refund request is initiated, they will send you a consumption info request over API to ask for your opinion but ultimately its their decision and its handled by them). That's why I don't have a problem with Apple's cut as they handle something that's actually quite complicated and annoying. Their control…
> no ridiculous fees incurs
.. to the user. What do they charge the vendor, or it just the 30% of every transaction (which some might consider ridiculous).
Re: The madness of SaaS chargebacks
#18This is something good about the Apple AppStore, they handle the chargebacks and no ridiculous fees incurs(When a refund request is initiated, they will send you a consumption info request over API to ask for your opinion but ultimately its their decision and its handled by them). That's why I don't have a problem with Apple's cut as they handle something that's actually quite complicated and annoying. Their control…
> no ridiculous fees incurs .. to the user. What do they charge the vendor, or it just the 30% of every transaction (which some might consider ridiculous).
That's the point, I don't subscribe to the idea that %30 is ridiculous if you don't have a full blown department to handle that. Can be argued that Apple should give people that option but for anyone who minds being charged $43.95 for transaction that goes badly will be beter off to pay Apple and have piece of mind as long as their margins allow that.
Re: The madness of SaaS chargebacks
#19Earlier quoted context omitted.
This could also be from fraud. Card testing for example, where they aim to figure out missing card details. Or some other nefarious use of stolen card details.
Yes, we’ve had a few cases where people tried card testing through us. But we noticed quickly and introduced the proper limits. In general, if you redirect the user to Stripe Checkout after clicking Subscribe button, all of that should be handled by Stripe itself and not affect your account. I guess )) But this is a slightly different story. With chargebacks, almost every time it was just a customer not wanting to ad…
Yep so strange given it is never easy to get a charge back. Doing one now and it is like pulling teeth. I would heavily chase up a traditional refund before doing a charge back. I suspect some banks are making it too easy.
Re: The madness of SaaS chargebacks
#20TL;DR: We run multiple SaaS products on Stripe. Even with clear renewal reminders, invoices and easy cancellations, some users skip refunds and go straight to chargebacks. A $10 payment ended up costing us $43.95 recently. Banks almost always side with the cardholder, and the only reliable “win” I’ve seen is when the customer withdraws the dispute themselves. So here’s my question to the community: What’s really goin…
> What’s really going on here? Why do banks completely ignore the terms customers agreed to when they subscribed, or even in cases where the claims are obviously false? And why aren’t customers required to provide any proof at all?
they have a banking relationship with their client, and none whatsoever with you
if they decline the chargeback they then take on a load of risk (they might lose their client, they might get reported to the regulator, they might be sued by their client and then stuck with the bill)
but if they just pass it on then you take all the pain
not surprising at all given the structure of how credit card payments work