A chargeback on your Stripe account is not the end of the world — but it requires a fast, specific response. Here is the complete guide for solo SaaS founders.
A chargeback happens when a customer disputes a payment with their bank or credit card company rather than contacting you directly. The bank reverses the payment and charges you a dispute fee (typically $15 on Stripe). You have a window to respond with evidence. If you win, you get the money back minus the fee. If you lose, you lose both.
Most chargebacks on SaaS products fall into two categories: fraud (someone used a stolen card) or "I didn't recognise this charge" (the customer forgot they subscribed). Both are manageable with the right response.
A chargeback is a forced reversal initiated by the cardholder's bank, not by Stripe. Stripe is the intermediary — they notify you of the dispute, give you a deadline to respond with evidence, and pass your response to the bank. The bank makes the final decision.
Stripe's dispute window is typically 7–21 days depending on the card network. Missing the response deadline means automatic loss. Set a calendar reminder the moment you receive a dispute notification.
Go to your Stripe Dashboard, then Payments, then Disputes. Click the dispute and submit evidence before the deadline. Stripe provides a checklist of evidence types relevant to your dispute reason — use it.
For "subscription cancelled" disputes (customer says they cancelled but were still charged): submit your cancellation policy, the date the customer cancelled (from your Memberstack or billing logs), and confirmation that the charge occurred before the cancellation date.
For "unrecognised" disputes (customer doesn't recognise the charge): submit proof that the customer signed up (signup email, IP log, account creation record), proof of service delivery (login records, session logs), and your refund policy.
For fraud disputes (card was stolen and the customer is the real cardholder): submit what you have. You will likely lose this dispute. The correct response is to block the fraudulent account and improve your fraud prevention for future customers.
The strongest evidence package includes: the customer's account creation record with email and IP address, the signup confirmation email you sent, evidence of service usage (login timestamps, feature usage logs), your terms of service and refund policy (with the URL and date accessed), any email correspondence with the customer, and a clear customer statement explaining what happened.
Do not submit angry responses or lengthy explanations of why the customer is wrong. Submit evidence. Banks make decisions on evidence, not arguments.
Use a recognisable billing descriptor. The most common "unrecognised charge" dispute comes from a billing descriptor that doesn't match the product name. In Stripe Dashboard, set your statement descriptor to your product name. If customers don't recognise the charge name, they dispute it.
Send reminder emails before subscription renewals. A 3-day reminder before a billing date significantly reduces "I didn't know I was being charged" disputes. Stripe has a built-in upcoming invoice notification — enable it.
Make cancellation easy. Customers who can't easily cancel dispute instead. A self-serve cancellation path in Memberstack or your billing portal reduces chargebacks more than almost any other change.
Use Stripe Radar for fraud prevention. Stripe Radar (included with standard Stripe accounts) blocks many fraudulent cards before they result in chargebacks. Review your Radar rules and enable the recommended rules for subscription businesses.
Stripe monitors chargeback rates. A rate above 1% (1 dispute per 100 transactions) puts your account at risk of increased fees or termination. If you receive a warning from Stripe, respond immediately: implement the prevention measures above, review your recent disputes for patterns, and email Stripe support with your plan to reduce disputes.
If your account is closed: Lemon Squeezy or Paddle are the fastest alternatives. Both have merchant-of-record models that include their own fraud and chargeback management — which also protects you from Stripe account risk.
Tell Marcus your current billing setup and chargeback situation. You'll get specific recommendations in session one.
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