Last updated: June 3, 2019
Stripe provides cloud-based e-commerce services, including services that enable online businesses to receive payment from their customers. The services include advanced machine learning algorithms to help you identify and prevent fraud. Your Stripe Account currently provides access to Stripe’s unified dashboard tools, fraud analytics capabilities, and dispute handling. In addition to these capabilities, and as explained in more detail below, you may enroll in the Chargeback Protection Product (as described to you by Stripe), which provides you with the benefit of enhanced fraud detection and prevention functionality, as well as protection against the costs and fees you would have paid to Stripe for certain fraudulent Transactions.
1. Relationship to Other Agreements
Please read these Chargeback Protection Terms (“Terms”) carefully. These Terms are incorporated into and form part of your Agreement with Stripe (the Stripe Services Agreement (“SSA”), unless you and Stripe agree in writing that another agreement will apply). The Chargeback Protection Product is a “Service” for the purposes of your Agreement with Stripe. With respect to the Chargeback Protection Product, these Terms will prevail to the extent they conflict with your agreement with Stripe. Where a capitalized term is used but not defined in these Terms, it has the meaning given in your agreement with Stripe.
Important: Stripe may indicate that the Chargeback Protection Product as a whole, with regard to a particular release or feature, or as offered in certain countries or regions, are classified by Stripe as “beta”, “limited availability”, “invite only”, or “pre release” (“Beta”). You understand that the Chargeback Protection Product may be generally available in some countries while still classified as Beta in others. For so long as the Chargeback Protection Product, or a particular release or feature is marked as Beta in a given country, the provisions of your agreement with Stripe that address beta and pre-release services will continue to apply to your use of the Chargeback Protection Product.
2. Covered Charges and the Chargeback Protection Product
The Chargeback Protection Product operates with respect to valid credit card Charges that your customers submit via Stripe Checkout (“Protected Charge”). For each Protected Charge, the Chargeback Protection Product will use machine learning technology to initially calculate the likelihood of the Protected Charge being fraudulent, and will dynamically adjust the Checkout interface that is presented to the Customer, based upon this calculation and Stripe’s proprietary fraud analytics and detection tools. If the likelihood of a Protected Charge being fraudulent is less than a predetermined threshold (set by Stripe), then Stripe will allow the Protected Charge to proceed.
If a Protected Charge exceeds the predetermined threshold, we may give you the ability to tell us that the Protected Charge should proceed. If we provide you with this ability, and you tell us, or have told us, to proceed with the Charge, then the Charge will no longer be a Protected Charge, the protection described in Section 3 will not apply, and you will remain fully responsible and liable to us if the Charge is subject to a Fraud Dispute (as defined in Section 3).
Stripe may also hold you responsible for a Protected Charge if: (a) you are in breach of these Terms or your agreement with Stripe, (b) you provide us with inaccurate or incomplete information for a Protected Charge, (c) the Protected Charge exceeds the Protection Limit, as described in Section 3; (d) you are a new Stripe merchant, as described in Section 4, or (e) the Protected Charge occurred before the date on which Stripe activates your access to the Chargeback Protection Product, or after the date on which these Terms expire or are terminated.
3. Protection Against Chargebacks, Fees and Fines for Covered Charges
If a Protected Charge is subject to a Fraud Dispute (as defined below), then despite anything to the contrary in your agreement with Stripe, Stripe will not hold you responsible for the amount of the Protected Charge, for any associated chargeback fees, or for any fines imposed on Stripe by the credit card brand accepted by Stripe Checkout (collectively, “Card Networks”), including Visa, Mastercard and American Express, to the extent that the fines are caused by the Protected Charge, subject to the Protection Limit (as described below).
We may elect to challenge a Fraud Dispute on your behalf, in which case you authorize us to communicate with third parties (including the Card Networks) for this purpose. Your protection is not affected by whether or not Stripe challenges (successfully or not) a Fraud Dispute. Likewise, if we successfully challenge a Fraud Dispute to a Protected Charge, you are not entitled to any proceeds or refunded amounts that we receive following the challenge.
Stripe may implement and enforce a limit, as pre-determined by Stripe, on the maximum amount of Protected Charges for which Stripe will assume responsibility (“Protection Limit”). We may describe the Protection Limit on our website, or notify you (on a prospective basis) of the creation or modification of a Protection Limit that applies to your use of the Chargeback Protection Product.
When we refer to a “Fraud Dispute” in these terms, we mean chargebacks for which the cardholder asserts that she or he did not authorize the disputed Charge. Fraud Disputes do not include any other type of dispute or chargeback, including chargebacks where the cardholder asserts that a good or service was unwanted, defective or not delivered. We use reason codes assigned by the Card Networks to determine whether or not a chargeback is a Fraud Dispute. The current list of reason codes that give rise to a Fraud Dispute is set out in Appendix 1 to these Terms. We may update this list from time to time by updating [Appendix 1(#fraud-disputes)], and we will use the list in force at the time of a chargeback to a Protected Charge to determine whether the chargeback is a Fraud Dispute.
The Chargeback Protection Product is designed to help you reduce the number of chargebacks that you receive. However, you should be aware that chargeback rates are tracked by the Card Networks, and that for the purpose of this tracking all of your chargebacks will be attributed to you (including chargebacks on Protected Charges). If you exceed the acceptable chargeback rates specified by the Card Networks, you may be placed into one or more monitoring programs. If you are using the Chargeback Protection Product, and Stripe identifies that you are at risk of being placed in a monitoring program, Stripe may require you to promptly take remedial actions (as specified by Stripe) to reduce your chargeback rate.
4. New Stripe Merchants
For the purposes of this Section, we will act reasonably in determining whether you are a new Stripe merchant, taking into account the age of your Stripe Account, and your transaction history while on Stripe. If you are a new Stripe merchant, and we have activated your access to the Chargeback Protection Product, we may determine a period of time during which we will not pay you the amount of Fraud Disputes (and associated fees and fines) for Protected Charges (“Evaluation Period”). Instead, we will hold these amounts, and only pay them to you once you have successfully passed our internal control processes, including our processes related to credit and fraud risk. We may, but are not obliged to, extend the Evaluation Period if you have not passed our processes within the determined time period. If you do not pass our processes during the Evaluation Period then these Terms will automatically terminate, and you will not be entitled any amounts held by us (or otherwise owed to you) with respect to Protected Charges. You will also not be entitled to any refund of fees paid if we terminate your enrollment in the Chargeback Protection Product.
5. Charge Routing
The Chargeback Protection Product is most effective when it is able to see all of your Charges. You agree to submit all of your Charges via the Stripe Checkout. In addition, and without limiting the previous sentence, you must not, and you are prohibited from, discriminating in your Charge routing so that you route your higher-risk Charges to the Chargeback Protection Product. If we believe that you are engaging in such discriminatory routing, we may require you to provide us with a detailed description of your routing logic. If we subsequently determine that you have engaged in discriminatory routing, we may hold you responsible for Fraud Disputes (and associated fees and fines) that we incurred with respect to your Protected Charges during the period of the discriminatory routing.
6. Your Use of the Chargeback Protection Product
In addition to any other provision of these Terms or your agreement with Stripe, you expressly agree that you will not use the Chargeback Protection Product for any purpose, function, or feature not described in the Documentation or otherwise communicated to you by us. You also expressly agree that you will follow all best practices identified in the documentation for this Chargeback Protection Product.
7. Chargeback Protection Data
We may provide you with access to information related to the Chargeback Protection Product (“CP Data”) through the Dashboard or the API. CP Data is Stripe Data, and you may only use CP Data: (a) for fraud detection and prevention with respect to your Charges, and (b) in accordance with these Terms and your agreement with Stripe. You will not transfer, resell, license or otherwise make the CP Data available to third parties. You are solely responsible for all use of CP Data under your account, including the acts and omissions of your users. You will not use the CP Data for purposes not expressly permitted under this Agreement, such as for conducting background checks, or decisions concerning the extension of credit or offer of employment to any individual.
Stripe will provide the Chargeback Protection Product to you for the fee communicated to you via email or in the Dashboard (“CPP Fees”). For clarity, the CPP Fees only apply to Protected Charges, and not to Charges that, due to your instructions, are no longer Protected Charges (as described in Section 2, paragraph 2). We will automatically deduct the CPP Fees from your Charges. If you do not understand the CPP Fees or you have a question about the CPP Fees, please contact us.
9. Term and Termination
These Terms commence when you confirm your enrollment in the Chargeback Protection Product within the Dashboard or via email, or on the date of your first Protected Charge (whichever occurs first), and continue unless terminated earlier by a party as provided in this Section 9 or pursuant to your agreement with Stripe. Your enrollment in the Chargeback Protection Product does not mean that your use of the product is activated. Stripe will notify you (via the Dashboard or email) when we activate your access to the Chargeback Protection Product, and we may delay or deny activation for any reason.
Either of you or Stripe may terminate your access to the Chargeback Protection Product at any time and for any reason by providing notice to the other party. Your access to the Chargeback Protection Product may be automatically suspended if we suspend your use of any of the Stripe Services as provided in your agreement with Stripe. These Terms will automatically terminate if your agreement with Stripe is terminated.
Appendix 1 - Reason Codes - Fraud Disputes
10.4 Other Fraud - Card Absent Environment
4837 No Cardholder Authorization
4840 Fraudulent Processing of Transactions
Discover, Diners Club, JCB
UA02 Fraud Card Not Present Transaction
FR2 Fraud Full Recourse Program
FR4 Fraud Full Recourse Agreement
F29 Fraudulent Transaction – Card Not Present 4534 Multiple Records of Charge (ROCs); Card Member denies participation in Charge
4540 Card Not Present; Card Member denies participation in Charge