Chargebacks

At SHARE, we use Stripe as our primary payment processor. While Stripe offers a reliable and secure payment environment, there are circumstances where a customer may file a chargeback—a formal dispute initiated with their bank to reverse a transaction. Chargebacks can occur due to reasons such as unauthorized transactions, product not received, or customer dissatisfaction. Once initiated, Stripe reverses the payment, temporarily or permanently removing the funds from our platform. This process incurs fees and carries financial risks for our merchants.

Understanding chargeback fees

When a chargeback is filed, Stripe imposes a $15 non-refundable fee per incident. In order to protect our business and maintain fairness, SHARE charges a total of $25 per chargeback to our merchants. This includes the Stripe fee and an administrative cost for reviewing, preparing, and handling appeals.

Chargeback scenario	Fee	Refundable?	Explanation
Initial chargeback	$25	No	$15 Stripe fee + $10 SHARE admin fee
Appeal submission	$15	Yes (if won)	Stripe charges $15 to process and submit evidence to the bank
Chargeback lost	Original amount + $25 + $15	No	Merchant loses funds and pays all fees
Chargeback won	$0 (all refunded)	Yes	Full transaction amount and $15 appeal fee returned

Appealing a chargeback

SHARE merchants have the option to appeal a chargeback. We strongly encourage submitting clear and thorough evidence such as order confirmations, tracking numbers, delivery proof, and customer communication logs. Our support team will help compile and send this evidence to Stripe, who forwards it to the cardholder’s bank.

The final decision rests with the issuing bank. If the bank rules in the merchant’s favor, the transaction is reinstated, and the $15 appeal fee is refunded. However, if the chargeback is upheld, the merchant permanently loses the transaction amount and is responsible for both the initial chargeback fee ($25) and the appeal fee ($15).

Recommendations to prevent chargebacks

To reduce the likelihood of chargebacks, we recommend the following best practices:

Only charge customers when they are 100% satisfied.
Clearly display product/service descriptions and refund policies on your page.
Use 3D Secure for card payments to verify the identity of cardholders.
Maintain detailed transaction records and customer communications.
Respond quickly to customer concerns before they escalate to disputes.
Use chargeback alerts or fraud detection tools for suspicious activity.

Stripe tools & protection

Stripe provides a suite of chargeback management tools that can help merchants handle and potentially win disputes:

Chargeback Protection: Covers the disputed amount and waives the fee if the transaction is marked as fraudulent (available with certain Stripe plans).
Evidence Submission Platform: A user-friendly dashboard to upload proof and respond quickly.
Automated Response Generator: Helps merchants create compelling responses based on provided data.

For more information on handling disputes, visit the official Stripe Dispute Documentation.