Dealing with payment disputes and chargebacks can be a challenging aspect of running an online business. When a customer disputes a charge, it can lead to a negative balance in your Stripe account. In this article, we'll walk you through the process of handling such situations and provide guidance on what steps you can take.

Understanding Negative Balances: Your available Stripe balance may go into the negative if the cost of refunds, disputes, or Stripe fees exceeds the existing balance. This often occurs when a subscriber disputes a charge, and the bank imposes a $15 dispute fee. In such cases, it's crucial to be aware that handling these disputes involves a process that must be navigated through the bank.

Bank's Role in Dispute Resolution: Once a subscriber disputes a charge with their bank, the matter is taken out of Stripe's hands and becomes a bank-driven process. The bank will assess the validity of the dispute and determine whether the client should be refunded. It's important to recognize that this decision lies with the bank, and as a business, you must cooperate with their resolution.

Client's Role in Resolving Disputes: If your client wishes to withdraw the dispute, they need to communicate this decision to their bank. Just as they initiated the dispute, they can inform their bank that they no longer wish to contest the charge. The bank will then issue a letter confirming the resolution of the dispute, effectively settling the matter.

Additional Resources from Stripe: To further assist businesses in navigating disputes, Stripe provides valuable resources on handling chargebacks. You can find additional information and guidance on their dedicated support page: Handling Disputes with Stripe.

Limitations on Overrides: It's important to note that, as a business, you may encounter limitations in your ability to override the bank or Stripe's process for handling disputes. This is because the resolution of disputes involves financial institutions, and as a payment processor, Stripe is bound by their procedures.

If you have any further questions or need assistance with next steps, feel free to reach out to support@bridgeathletic.com