If you’ve ever logged into your Stripe dashboard and seen a new dispute pop up, you know how frustrating it feels. A dispute, also known as a chargeback, happens when a customer contacts their bank and says they shouldn’t have been charged. Stripe takes this seriously. Too many disputes can lead to higher fees, withheld funds, or even a frozen account. Not to mention the dispute fee increase they’re implementing starting June 17, 2025.
But the good news? Most disputes are preventable. With a few practical changes, you can bring your dispute rate down and keep your payment flow running smoothly.
Here’s how to do it.
1. Understand Why Disputes Happen
Before you can fix the problem, you need to know where it’s coming from. On Stripe, the most common dispute reasons include:
- The customer didn’t recognize the charge
- They claim they didn’t receive the product
- They say the product wasn’t as described
- They forgot about a subscription or didn’t realize it renewed
Take a look at your past disputes. Are the same reasons showing up again and again? That’s a good place to start.
2. Make Checkout Clear and Honest
A confusing checkout experience can lead to a lot of trouble later. Customers need to know exactly what they’re paying for and what to expect.
Here’s what helps:
- Use simple, accurate product descriptions
- Show the full cost upfront, including taxes, fees, or shipping
- Make sure your business name appears clearly on the customer’s bank statement
- Use Stripe’s fraud prevention tools like Radar to filter out suspicious transactions
This small stuff goes a long way toward building trust and avoiding misunderstandings.
3. Talk to Your Customers Before There’s a Problem
You don’t need fancy automation to stay in touch. Just make it easy for customers to know what’s happening.
Send a confirmation email after every order. If it’s a physical product, include tracking info. If it’s digital, clearly state how and when they’ll receive it. And make sure your support contact is easy to find. A simple email reply is often enough to stop someone from going to their bank.
People are more patient when they feel like someone is actually listening.
4. Be Extra Clear with Subscriptions
Recurring charges are a big reason customers file disputes. Sometimes they forget they signed up. Other times they didn’t realize they were being charged at all.
To lower the chances of that happening:
- Send a reminder before a subscription renews
- Be upfront about trial periods and when billing starts.
- Make canceling simple, not a scavenger hunt
You don’t need to trick anyone into staying. If your service is good, they’ll come back.
5. Offer Refunds Before It Gets Messy
It’s better to give a refund than to fight a dispute. Not every customer is out to scam you. Sometimes, something just goes wrong, or they’re genuinely confused. If someone’s unhappy, try to resolve it quickly.
Have a clear refund policy. Share it where people can actually see it. And stick to it. You’ll save yourself time, money, and stress in the long run.
6. Use the Tools Stripe Gives You
Stripe isn’t just there to collect payments. It also gives you tools to stay ahead of issues. Set up alerts so you know when a dispute comes in. Review each one carefully before you respond. When you do fight a dispute, only include the information that matters.
Keep an eye on your dispute rate in your dashboard. Stripe will warn you if you’re getting close to their limits. Don’t ignore those warnings.
Final Thoughts
Disputes are part of doing business online, but they don’t have to be a constant headache. The more you focus on clarity, communication, and trust, the fewer problems you’ll have.
Make it easy for people to understand what they’re buying. Be available when they need help. Handle complaints with empathy. That’s really the core of it.
If your Stripe account is seeing more disputes than you'd like, it might be time to take a closer look at how you're handling chargebacks and fraud prevention. High dispute rates can lead to unnecessary fees, blocked payouts, or a frozen account. Chargeblast helps you stay ahead with real-time alerts, smarter dispute tracking, and tools designed to reduce chargebacks before they impact your business.
Curious how it works? Book a demo below or get started today and see how Chargeblast can help you keep your dispute rate low and your Stripe account healthy.
