Hey there Uplisters! 🌟

The online world of property rentals is vast and, while it opens doors to countless opportunities, it can also usher in some challenges. One of these challenges? Handling payment disputes and potential fraud. So, we've delved deep into understanding disputes within Stripe and collaborated on the best strategies to address them. Let’s get started!

Understanding the World of Disputes:

What's a Dispute?

Disputes or chargebacks are initiated by guests who feel:

Their expectations based on pre-transaction details weren't met.
The transaction wasn't authorised.
They've been overcharged or double-charged.

The Journey of a Disputed Transaction:

1. The guest lodges the dispute with their bank.

2. Funds (along with a $15 dispute fee) get withdrawn from your Stripe account.

3. You can fight honest-to-goodness disputes by submitting evidence within 14-21 days.

4. The issuing bank takes 60-75 days to review and decide.

5. Winning the dispute? Funds (minus the fee) are returned. Losing? The funds are gone.

A 70% loss rate is actually not too shabby given the uphill battle. But we can definitely help improve it!

Dispute Navigation Tips:

1. Clarity is King: Clear communication reduces the chances of disputes. Let your guests know exactly why they're being charged and when to expect returns. For instance:

_"Thanks for your stay! Your deposit will be returned within 3-5 days post check-out. Want it sooner? Or haven’t received the payment within the timeline, please reply here!"

2. Use Evidence Smartly: When responding to disputes, provide concise, relevant evidence. Sending the entire terms and conditions won't cut it. Focus on the main points, and remember: URL links are usually ignored, while clear screenshots and text excerpts shine.

3. Respond According to the Category of Dispute: Make sure you check Stripe’s guide on responding to specific categories. Sometimes a crucial piece of evidence may be missed which will affect your win/loss rate.

Stripe’s RADAR: Your Secret Weapon Against Fraud:

Stripe's RADAR is a nifty tool, using machine learning to detect potential fraud risks. For those of you diving deeper into the trends of your disputes, RADAR for Fraud Teams offers personalised defences.

Here's what RADAR can do for you:

- Early Fraud Warnings: With 67% accuracy, RADAR detects potential fraud risks.

- 3DS Verification: Pushes potentially high-risk guests through a 3DS verification process.

- Personalised Rules: Whether it's blocking failed CVC attempts or enabling a manual review queue for suspicious transactions, RADAR gives you command.

Here's some information on Stripe Radar and some handy rules you can put in place immediately.

Keep an eye out for Stripe's new Radar AI in early 2024 – it'll be a game-changer!

Keeping Disputes in Check with Stripe Metrics:

Stripe measures disputes in two ways:

- Dispute Activity: This represents the dispute percentage by the dispute date.

- Dispute Rate: Calculated as a percentage of disputes based on charge date.

Don’t let your chargeback rate exceed 0.75%! Why? This is when Stripe gets involved to protect their interests and avoid heavy penalties. And a 1% rate? That could jeopardise your access to key card networks.