Disputes and chargebacks

What happens when a customer files a dispute.

What is a dispute

A dispute (also called a chargeback) happens when a customer contacts their bank or card issuer to reverse a charge. This can occur for various reasons: the customer didn't recognize the charge, believes they didn't receive the product, or claims the transaction was unauthorized.

Disputes are handled by the payment processor and the customer's bank. Affiliateo facilitates the process, but the final decision is made by the bank.

Dispute fees

When a customer files a dispute, Stripe charges a $15 dispute fee. It is passed on to the seller at cost.

The $15 fee is charged as soon as the dispute is opened and is not refunded if you win: Stripe keeps it either way. It only comes back when the case was an inquiry that closed without becoming a chargeback.

What happens when a dispute is opened

When a customer files a dispute, the following actions are taken automatically:

  • Buyer is banned: The customer is automatically banned from the platform to prevent further abuse.
  • Seller is notified: You receive a notification with the dispute details.
  • Funds are held: Your share of the disputed amount is taken from your balance and held until the bank decides.
  • Affiliate commission is held: If an affiliate referred the sale, their commission on it is held too.

Responding to a dispute

We email you when a dispute opens and again a few days before the deadline. Open the payment from your Payments tab and press Respond. We fill in what we know about the sale; you add your side and your proof, like screenshots of your messages with the customer or of them using what they bought. Add a PDF or up to 10 pictures a box, and we put them together for the bank. Banks don't open links or watch videos. You can only send it once, before the date shown.

Answering yourself costs $15 if you lose and nothing if you win. If you don't answer, Stripe may answer for you automatically, which costs 30% of the disputed amount and only if it wins.

Dispute resolution

Disputes are resolved by the customer's bank. There are two possible outcomes:

Won (resolved in your favor)

  • The held funds are restored to your available balance.
  • The affiliate who referred the sale gets their commission back.
  • The $15 dispute fee is not refunded. Stripe keeps it whoever wins.
  • If Stripe's automatic dispute response won it for you, Stripe charges 30% of the disputed amount, which is passed on to you.
  • The buyer remains banned from the platform.

Lost (resolved in buyer's favor)

  • The held amount is not returned to you, and the $15 fee is not refunded.
  • The buyer receives a refund from their bank.

Preventing disputes

The best way to handle disputes is to prevent them from happening. Here are some tips:

  • Write clear product descriptions: Make sure customers know exactly what they're buying before they purchase.
  • Respond to support quickly: A customer who can reach you is far less likely to go to their bank.
  • Offer refunds proactively: If a customer is unhappy, issuing a refund is almost always cheaper and less damaging than a dispute.

Dispute rate limit

Your dispute rate is your disputes, won or lost, divided by your sales over the last 90 days. At 0.5% we send you a warning. At 0.75%, once you have at least 3 disputes in that time, new sales pause automatically. Stripe treats anything above 0.75% as too high for our whole account, so this keeps every seller able to get paid.

While sales are paused, your products show as not available, Buy buttons are hidden and your business leaves Discover. Nothing is deleted, and customers who already bought keep their access. Contact support to have your account reviewed.