Challenge

Since its founding in 2015, Jenni has relied on Stripe for its global reach, reliability, and user-friendliness. Jenni uses Stripe Payments and Stripe Billing to manage subscriptions; Stripe’s Optimized Checkout Suite to offer various payment options; and Stripe’s accelerated checkout, Link, to improve customer conversions.

Disputes are an inevitable challenge for any business, and Jenni is no exception. Jenni’s team had limited resources to devote to dispute resolution, which can require significant manual work. While Jenni uses Stripe Radar to help its fraud teams identify and block fraudulent transactions, it also needed a solution to manage its disputes, particularly “friendly fraud,” which occurs when legitimate charges by real customers are falsely disputed as fraudulent.

A surge in friendly fraud pushed Jenni close to the dispute rate thresholds for card issuers’ monitoring programs, such as the Visa Dispute Monitoring Program’s early warning threshold. If Jenni exceeded these thresholds, it would become subject to higher dispute fees and additional fines as well as potential restrictions on its ability to process transactions.

Fighting each dispute was costly and time-consuming for Jenni. Due to opaque rules around dispute governance and how challenging it can be to prove transactions are legitimate, Jenni’s dispute win rate was around 10%. Even disputes Jenni won counted toward its dispute rate, so Jenni’s team didn’t see a significant return from investing time and resources in managing disputes. Facing these high stakes, Jenni sought a proactive, automated solution to prevent fraud disputes before they were filed, which would also free its employees from dispute management to focus on value-driving activities.

“Fighting disputes was so time-consuming, and it was draining to see such a low win rate. We needed an automated solution that could help us avoid disputes altogether,” said Justin Wong, head of growth at Jenni.

Solution

To address its fraud challenges, Jenni explored the Stripe App Marketplace, which enables businesses to connect and extend Stripe with many third-party tools that are important to their workflows. Working through the Stripe App Marketplace, the dispute management team quickly discovered Chargeblast as a featured app. Chargeblast, a trusted Stripe partner, sends real-time alerts when a customer initiates a dispute, giving Jenni a window to address the issue before it’s logged as a fraud case. With Chargeblast, Jenni can address potential disputes directly with the customer, often by issuing a refund. Once the refund is made, Chargeblast will notify the credit card company that the issue has been resolved and there is no need to open an official dispute, which helps maintain Jenni’s good standing with card networks.

The integration process was simple. Within 10 minutes of downloading the Chargeblast Stripe app, Jenni was fully onboarded and equipped with fraud mitigation tools. When a fraud alert appeared, Jenni’s dispute management team could immediately match alerts to specific transactions and refund or unsubscribe the customer to avoid the fraud dispute altogether. This approach minimized risk, reduced friendly fraud activity, and helped maintain Jenni’s positive account status with card issuers.

“We understand the stress that comes along with a rising chargeback risk,” said Qi Cao, founder and CEO of Chargeblast. “We aim to provide the most tech-forward chargeback mitigation platform with white-glove client service. This is one reason why we have a 4.6/5.0 review on Trustpilot.”

Results

Chargeblast alerts help lower dispute activity to nearly 0%

Jenni reduced dispute rates to nearly 0% within 2 weeks of adopting Chargeblast, which offers 99% alerts coverage on all transactions. As a result, Jenni’s dispute rate was no longer near the Visa Dispute Monitoring Program’s early warning threshold, minimizing concerns about impending dispute fees or fines.

Curbing disputes leads to 2% uplift in authorization rates

As Jenni’s dispute rate improved, so did its authorization rates. Jenni saw a 2% increase in payment authorization rates, which drove hundreds of thousands of dollars in additional annual revenue.

Employees gain hundreds of hours previously spent fighting disputes

With the dispute management team at Jenni no longer fighting disputes, employees save hundreds of hours each month. The team has redirected its efforts to higher-ROI functions and now focuses on business and revenue growth through Stripe’s revenue and finance automation (RFA) suite, using Stripe’s billing capabilities to scale Jenni’s customer base.

About Partner

Chargeblast allows merchants to significantly reduce chargebacks and dispute rates. Through its Stripe app, Chargeblast allows for end-to-end automation of chargeback alerts so merchants can address disputes before they reach Stripe. Chargeblast is known for its 4.6/5.0 stars on Trustpilot and for being the most tech-forward chargeback mitigation platform globally.