When chargebacks start piling up, the payment provider you use can either help or slow you down. Stripe and Paddle both let merchants fight disputes, but the tools, automation, and support they offer are completely different. If you're trying to decide which one gives you a better shot at winning more cases (or saving time), you'll want to understand how each handles the dispute process behind the scenes.
Automation: How Much Can You Hand Off?
Stripe
Stripe gives merchants access to the Radar and Chargeback Protection features, but the actual dispute process is still fairly manual. If a chargeback happens, Stripe notifies you, but you're the one responsible for collecting evidence and submitting a response through the dashboard. Stripe offers some support documentation and templates, but there's no auto-response system or full-service option built into the platform.
Paddle
Paddle is more automated. Because it's a merchant of record (MoR), it handles all payments and chargebacks on your behalf. You don't need to respond to disputes directly. Paddle deals with the banks and submits responses automatically using whatever information it has access to. That's a plus if you want to avoid hands-on work, but it also means you have less control over how disputes are fought.
Win Rates: Who Wins More?
Stripe doesn't publicly share win rate benchmarks, but most small to midsize merchants using Stripe typically see average win rates around 30–45%, depending on how strong their evidence is and how fast they respond. If you're not using a third-party tool or a chargeback manager, you're on your own, and many merchants don't have time to build strong responses.
Paddle's dispute win rate is also not shared, but because they auto-submit evidence without merchant input, the quality of responses can vary. Some merchants have reported mixed results. In low-ticket digital sales, Paddle's full control can be convenient. But if you sell higher-risk or high-ticket items, not being able to customize your responses might hurt your chances.
Dispute Support and Visibility
Stripe:
Stripe offers visibility into each dispute case. You can see deadlines, dispute categories, and track the entire process in the dashboard. But the support is still pretty self-serve unless you're a large enterprise account.
Paddle:
With Paddle, you get less visibility into the back-and-forth process. Because you're not the merchant of record, most of the dispute communication is between Paddle and the bank. You'll see the result, but not much else. For some merchants, that's fine. But if you want insight or to troubleshoot common chargeback triggers, it can be frustrating.
What Type of Merchant Benefits Most?
- Stripe is better for merchants who want full control of their dispute process, especially if they use third-party tools like Chargeblast to automate and strengthen responses.
- Paddle works well for lower-risk SaaS or digital product merchants who don't want to handle disputes themselves and are okay with limited control.
Stripe gives you tools and data, but expects you to use them. Paddle takes over the process, but you lose transparency.
Final Thoughts
Stripe and Paddle take different paths when it comes to dispute management. One gives you more control, the other gives you less responsibility. What's better depends on how hands-on you want to be, how complex your disputes are, and how much automation or customization you need. If you're a merchant that cares about chargeback rates, it's worth asking not just who handles the fight, but how well it's being fought.
FAQ: Stripe vs Paddle for Dispute Management
Is Stripe better than Paddle for handling chargebacks?
It depends on how involved you want to be. Stripe gives you more control and insight, but requires manual work unless you use a tool like Chargeblast. Paddle handles disputes for you, but limits your visibility and customization.
Can I win more disputes with Paddle?
You might win some, but you can't control how disputes are fought. That can lead to generic responses that don't always match the dispute reason. Merchants with higher-risk products may want more say in the process.
Does Stripe have chargeback protection?
Stripe offers optional Chargeback Protection, which refunds you for eligible disputes, but it comes with an extra fee and doesn't cover all chargeback types. It also doesn't help you fight the dispute—it just eats up the cost.
Can I use third-party tools with Stripe to help with disputes?
Yes. Stripe works well with tools like Chargeblast that automatically generate and submit responses. This is useful if you want better win rates without handling every dispute manually.
Why does Paddle act as the merchant of record?
Paddle is a merchant of record platform, meaning it handles the entire transaction process, including taxes, compliance, and disputes. It's built for SaaS and digital sellers who want to offload most of the backend work.
Which is better for SaaS merchants?
SaaS merchants who want a hands-off setup may prefer Paddle. Those who want visibility, control, and flexibility will likely do better with Stripe plus dispute automation tools.
Chargeblast Can Fill the Gap Stripe Doesn't
Stripe gives you the tools, but Chargeblast makes them work harder. It connects directly to Stripe, pulls dispute data instantly, and builds strong, customized responses with zero guesswork. You don't need to babysit the case or copy-paste evidence. Just review, send, and track. For merchants who want to win more disputes without losing time, Chargeblast gives you that extra layer Stripe is missing.
