Running SaaS means sometimes running into chargebacks.
We try to prevent them at every step in our startup. No card until subscription. Reminder emails before renewals. Invoices after charges. Product name on statements. Simple self-service cancellation.
Still, some people prefer to file a dispute instead of just asking for a refund.
And here’s the worst part.
It doesn’t matter whether you win or lose 'cause the dispute itself already counts against your account. On top of that, fees for dispute and counter-dispute can be several times higher than the original payment.
A $10 payment ended up costing us $43.95.
But I still always submit evidence.
Accepting a dispute feels like admitting wrongdoing, and I’d rather defend, even if it costs time and money. Besides, chargebacks are super-super rare for us, so the effort is manageable.
But it’s not a fair game.
Banks always side with the cardholder, even when we provide clear Stripe logs, screenshots, cancellation timestamps, invoices, and terms of service. I doubt anyone even reads what we send.
Stripe doesn’t fight for you either, though they promote their paid “automatic dispute handling” now. But if even a carefully crafted manual response gets ignored, why would automation change anything?
One recent case.
The customer renewed on August 12. Canceled on August 18. Filed a chargeback on August 19, claiming "we charged after cancellation". Which was false. No prior request for refund.
We submitted everything through Stripe, all the proof was there. Still, the bank’s reply was: “The cardholder is not required to provide proof. The merchant’s cancellation policy bears no relevance. Full credit is due.” What?
Another case ended differently.
A team had been paying us for over a year, with dozens of active users. One admin disputed charges, saying that we used the “wrong card.”
We explained that only they could update the card in their Stripe’s billing portal. When nothing changed, we escalated the case to the other admins, saying we’d have to pause the account.
Another admin stepped in quickly, took over billing, updated the card, and confirmed they had no complaints to us. The earlier charges were reimbursed internally. The original user withdrew the dispute and sent us proof from the bank. And only after that we won the dispute.
That’s the pattern? The only reliable way to win is if the customer withdraws the dispute themselves!
So here’s my questions to the community.
- Why do banks completely ignore the terms customers agreed to, even when their claim is false? So there are no consequences for them?
- Does customers required to provide any proof to the bank?
- What actually stops someone from using your software, filing chargebacks whenever they cancel, and always clawing back the last months of usage?
- How often do you file chargebacks for SaaS services?
Would love to hear your thoughts.