Stripe Dispute: Understanding Fees, Process, and How to Win

If you run an online store that only accepts payments through Stripe, you’ve probably dealt with Stripe disputes. These situations not only drain your funds but also waste valuable time as you navigate through the resolution process. In addition, dealing with disputes can seriously harm your business’s reputation, eroding customer trust and potentially costing you future sales.

This guide breaks down everything you need to know about Stripe disputes, including the new fee changes coming in June 2025, how to win disputes, and ways to prevent them.

What Is a Stripe Dispute?

A Stripe dispute occurs when a customer contacts their bank to question a charge from your business. The bank then reverses the payment, which is called a chargeback. Customers dispute charges for many reasons:

• They claim someone used their card without permission
• They say they never got the product
• They argue the product wasn’t what they expected
• Other customer issues

Did you know that up to 86% of chargebacks are actually “friendly fraud” – where customers bypass your return policy by going straight to their bank?

When a dispute starts, Stripe immediately takes the transaction amount plus a dispute fee from your balance. This happens before any decision is made. You’ll see the dispute in your dashboard with the reason code. You can either accept the dispute (agree to the refund) or fight it by showing evidence.

Each dispute affects your dispute rate – the percentage of your sales that end up as chargebacks. Card networks generally consider 1% the highest acceptable rate. Going above this limit could mean higher fees, penalties, or account monitoring.

Why Stripe Dispute Rate Matters

Your dispute rate is the percentage of your transactions that become chargebacks. For example, if you had 500 sales and 5 chargebacks, your dispute rate would be 1%.

This small number carries a big weight. Visa and Mastercard monitor merchants with high chargeback rates, with 1% generally being the threshold where you risk being flagged. Exceed this consistently, and several things can happen:

• You may be placed in monitoring programs with potential fines
• Your payment processor might increase your fees or hold funds in reserve
• In extreme cases, you risk account termination

Keeping your dispute rate low saves you money and protects your business relationship with payment processors.

The Stripe Dispute Process

Here’s what happens when a customer files a dispute:

1. Customer contacts their bank (not you) about a charge. Most networks allow disputes within 120 days of the original charge.
2. Stripe removes the money from your account – both the transaction amount and a dispute fee.
3. You get notified through your Stripe dashboard and email about the dispute, including why it was filed and your deadline to respond.
4. You decide to fight or accept the dispute. If you fight it, you’ll need to submit evidence by the deadline (usually 7-21 days).
5. The bank reviews the case, which typically takes 60-75 days. The entire process from start to finish usually spans 2-3 months.
6. The bank decides whether you win or lose. If you win, the held funds return to your account. If you lose, the customer keeps the refund.

Stripe Dispute Fees

Every Stripe dispute comes with a fee. In the U.S., this fee has been $15 per dispute, charged when the dispute is received, whether you win or lose.

Important Change: Starting June 17, 2025, Stripe is updating its dispute fee policy. If you challenge a dispute by submitting evidence, you’ll now pay an additional “dispute countered” fee on top of the existing fee.

Here’s the silver lining: If you win the dispute, Stripe will refund this counter fee. But if you lose, you’ll pay two fees – doubling your cost.

The original $15 dispute fee remains non-refundable even if you win. Stripe keeps this fee because they still incur network costs for all disputes.

Compare the old and new fee structures (using U.S. fees):

This means a lost dispute will now cost U.S. merchants $30 instead of $15 if they tried to fight it. Be strategic about which disputes to challenge – fighting every dispute could double your costs if you lose.

Why the change? Stripe explains that card networks have raised their chargeback fees in recent years. Networks now charge at multiple stages of the dispute process. While this isn’t great news for store owners, it makes preventing disputes more important than ever.

How to Win Stripe Disputes

When a dispute occurs, winning it means you keep the revenue and avoid a loss. While the final decision rests with the customer’s bank, these proven strategies will significantly improve your chances:

Respond before the deadline

Timing is absolutely critical. Stripe gives you a specific deadline (usually 7-21 days from the dispute date) to submit evidence. Mark this on your calendar and treat it as a top priority. Missing this deadline almost always results in an automatic loss, with no chance to appeal. Even submitting evidence just minutes late can mean forfeiting your right to challenge the dispute.

Gather strong, relevant evidence 

The quality of your evidence directly impacts your chance of winning. Tailor your evidence specifically to the dispute reason:

• For “product not received” claims: Show tracking numbers and delivery confirmation
• For “not as described” disputes: Share product descriptions and customer communications
• For fraud claims: Provide IP logs, matching addresses, or previous order history

The most powerful evidence includes official documentation from shipping carriers, timestamped communications, and verification that the customer received and initially accepted the product. Screenshots, receipts, shipping confirmations, emails, and chat logs all strengthen your case.

Write a clear, professional explanation

Your written statement to the bank reviewer is crucial. Keep it factual, concise, and professional—never emotional or accusatory. Create a chronological narrative that explains:

• What the customer purchased and when
• How and when it was delivered or provided
• Any relevant customer interactions before and after delivery
• Direct references to your attached evidence

This timeline approach helps the bank reviewer easily follow the transaction history and see that you fulfilled your obligations.

Use Stripe’s dispute guidance

Stripe Docs provides tailored suggestions on what evidence to submit based on the specific dispute type. Follow these recommendations carefully—they’re based on data from thousands of disputes and what typically works. Stripe frequently updates their guidance based on changing bank requirements and successful strategies. If Stripe suggests, for example, “include proof of prior refunds,” make sure to do exactly that.

Highlight policies and customer agreements

If your terms of service, refund policies, or shipping policies support your case, clearly reference them. For instance, if a customer claims “item not received” after your stated delivery window has passed, but your shipping policy clearly states delivery timeframes and procedures for missing packages, include this. Provide proof that the customer actively agreed to these terms during checkout (like screenshots of your checkout page showing the terms checkbox). While policies alone won’t win disputes, they strengthen your overall case.

Stay organized and keep comprehensive records

Having a systematic approach to order documentation makes fighting disputes much easier. Maintain organized records of:

• Order details and timestamps
• Payment confirmation screenshots
• Shipping labels and tracking information
• Delivery confirmation and photos
• All customer communications
• Product specifications and descriptions
• Terms of service acceptance logs

Consider implementing an order management system that automatically preserves this information. When a dispute arrives, you’ll have everything ready instead of scrambling to find evidence.

Be selective about which disputes to fight

With the new fee structure, challenging every dispute could be costly if you lose. Focus your efforts on disputes where:

• You have strong, clear evidence
• The transaction amount justifies the time investment
• The dispute reason is one you’ve successfully fought before

For very small transactions or cases where you clearly lack evidence, accepting the dispute might be more economical than fighting and potentially paying double fees.

Remember that banks tend to favor their cardholders in disputes. Don’t be discouraged by losses—use them as learning opportunities. If you consistently lose disputes with similar patterns, consider adjusting your business practices to address the root causes.

Synctrack Tools That Help Reduce Disputes

Particular tools can significantly help reduce disputes:

Synctrack Order Tracking

Synctrack Order Tracking is a powerful Shopify app that transforms how customers experience the post-purchase journey. This specialized order-tracking solution offers several key benefits that directly help prevent disputes:

• Advanced tracking capabilities: Synctrack automatically tracks orders across 600+ carriers worldwide, providing your customers with real-time package location and delivery estimates on a professional, branded tracking page.
• Proactive communication: The app sends automatic email notifications at key shipment stages (order confirmation, shipping, out for delivery, delivered), keeping customers informed without requiring any manual work from you.
• Significant reduction in support tickets: Stores using Synctrack Order Tracking report up to 70% fewer “Where is my order?” (WISMO) support tickets because customers can self-serve this information through the tracking portal.
• Delivery confirmation evidence: When packages are delivered, Synctrack records this confirmation, creating valuable evidence that can be used if a dispute occurs later.
• Fully branded experience: The tracking page matches your store’s branding, helping maintain customer trust and reducing the likelihood they’ll panic and file disputes when waiting for orders.
• Multiple language support: Synctrack works in 18+ languages, ensuring international customers fully understand their shipping status, reducing confusion that might lead to disputes.

Most importantly, merchants consistently report substantial reductions in “item not received” disputes after implementing Synctrack Order Tracking. The app’s straightforward pricing is quickly offset by savings from preventing disputes. When customers can easily monitor their order’s progress with automatic updates, they rarely resort to filing chargebacks with their bank.

Synctrack PayPal Tracking Sync

Synctrack PayPal Tracking Sync automatically syncs your tracking numbers to both PayPal and Stripe in real-time. This official PayPal-approved tool ensures both payment platforms have delivery information.

When PayPal and Stripe have tracking info showing an item was delivered, they can notify the customer, often preventing disputes before they start. This tool helps reduce disputes with both platforms, avoid money holds, and increase your chances of winning “item not received” claims.

By syncing tracking numbers automatically, Synctrack PayPal Tracking Sync helps you:

• Get funds released faster
• Reduce disputes from both Stripe and PayPal
• Build trust with payment platforms
• Improve your win rate for delivery-related disputes

Many store owners see a significant drop in chargebacks after implementing these tracking solutions because customers who can see their order status are less likely to file disputes.

Stripe Dispute FAQs

Here’s a more naturally-written version of the information about Stripe disputes:

Can I dispute a Stripe payment?

Yes. If you’re a customer who made a payment through Stripe, you have the right to dispute charges that don’t look right. Just contact your bank or card issuer and let them know the charge was fraudulent, or that you didn’t get what you paid for. This kicks off the chargeback process, giving you a way to fight suspicious or unsatisfactory transactions.

How long does a Stripe dispute take?

A Stripe dispute can take 60 to 75 days to be fully resolved. During this period, your bank investigates the claim, reviews evidence from both sides and makes a final decision. While this process unfolds, the disputed funds are held in limbo, unavailable to the merchant until a verdict comes in.

Can you get a refund through Stripe?

Yes, but there are two paths. The smoothest route is asking the merchant directly for a refund, which they can process through their Stripe dashboard. If they refuse or don’t respond, your fallback option is contacting your bank to dispute the charge. For merchants using Stripe, issuing refunds is straightforward—just a few clicks in your Stripe account.

What if I got scammed through Stripe?

Don’t panic if you’ve been scammed. As a customer, contact your bank immediately to report the fraud and start a dispute. They’ll guide you through the process of getting your money back. For business owners worried about becoming targets of fraud, Stripe offers a tool called Radar that uses machine learning to spot and block suspicious transactions before they hit your account.

Final Thoughts

Stripe disputes are a headache, but they don’t have to derail your business. When you get that dreaded dispute notification, take a deep breath and carefully review what you’re dealing with. Consider if the amount is worth fighting for, and if it is, gather all your supporting evidence to make a strong case. By reducing the number of disputes you face, you’ll not only save on costly fees but also maintain a healthier relationship with payment processors. Plus, you’ll free up valuable time to focus on what really matters—growing your business.