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Hi everyone. I'm Cindy and I'm a fraud expert here at Stripe.
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I got started in the payment space in 2014 where I quickly fell in love with the
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world of disputes. When I was working in ticketing ... I know.
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When I was working in the ticketing space,
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what I often heard was disputes are an inevitable part of doing business.
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While they may be inevitable, the losses don't have to be.
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Like most challenges in payments, disputes are a profit problem you can solve.
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We will show you how by first introducing you to four distinct archetypes.
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We'll highlight each and ask you to identify the one that fits you best. Second,
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we'll walk you through the Stripe solutions that align with that archetype.
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Before I dive in, let's do a quick pulse check in the room. By a show of hands,
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who here has seen their disputes volume increase over the last 12 to 24 months?
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Okay. Yeah, that's what I expected, seeing a lot of hands here. All right.
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Let me give you a quick benchmark.
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We tracked average businesses at Stripe and found that their dispute volume grew
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by 29% year over year as their payments volumes scaled.
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This isn't an anomaly and it's not a bad sign. In fact,
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increasing dispute volume is often a sign you've built something people want.
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When you reach more customers, fraudsters are never far behind.
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With that in mind,
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an important metric to track is how fast your disputes grow relative to your
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payment volume.
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The key is ensuring your disputes don't outpace that growth,
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that payment volume growth. So what do you do?
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The goal then becomes minimizing your dispute growth while maximizing your
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revenue recovery.
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The first step to answering that question is to measure their true cost.
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Most businesses believe a dispute only costs as much as the lost revenue,
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but that's only part of the story.
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Let's imagine a business selling $200 worth of flowers that ends up getting
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disputed. First, you have the cost of goods sold at $200.
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Then the cost of shipping can call that $10.
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Then you pay a $15 dispute fee.
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Another $15 if you decide to fight and end up losing.
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Now let's factor in the average hourly cost to actually fight a dispute,
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which comes to $35. And for some of you,
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it might take more than an hour to compile that evidence. Finally,
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if you're in a monitoring program,
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those fines can range $50 to $150 per dispute.
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As you can see, the all- in cost you thought was $200
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is actually more like $425.
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So how should you think about fixing this? As the cost of disputes increase,
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businesses need to become more sophisticated in how they handle disputes,
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which is why the framework we use to segment users relies on both cost and
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sophistication. Let's start with cost.
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Costs are a function of fees, average order value, and dispute rates.
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High costs and dispute rates push you to the right. Now,
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sophistication is a function of your win rates, response rates,
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and operations maturity.
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If you're just blindly fighting what you can or not fighting at all,
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you're probably on the lower end of this axis.
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If you've automated your disputes flow or have a team of analysts with custom
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templates, you're probably towards the top.
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So now that I've introduced the framework for our archetypes,
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let's get started with the lower left quadrant.
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Or this is what we call our early stage archetypes.
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If you're anything like new-to-market businesses I've advised in the past,
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it slightly disputes haven't been a major concern.
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Companies in this quadrant are typically small businesses, startups,
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and generally just handle disputes manually when and if they happen.
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Your disputes rates are usually less than 0.4%.
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You have less than 100 a year and your disputes cost less than $200.
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Now let's move along the access to the right.
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This quadrant contains businesses that fit into the growth stage archetype.
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So this quadrant tends to have high growth AI companies or small
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startups and their employees wear many hats.
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Some defining traits are disputes that are growing quickly and have surpassed
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that 0.4% mark. Over 100 disputes a year.
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And regardless of your average order value, your dispute cost is high,
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which then let's look at the upper right corner. That's our operation stage.
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So companies in this quadrant tend to be enterprise or late stage with large
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dispute volumes. You have a high AOV greater than 200.
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You have a disputes team compiling customized evidence packets.
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You have a high win rate, but you only fight disputes that are worth fighting.
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Finally, let's look at the top left corner.
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Or what we call our automation stage.
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Companies in this quadrant tend to be tech savvy digital natives that are likely
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selling subscriptions or other digital services with AOVs under 200.
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They usually fight disputes with API-driven responses,
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with minimal human intervention,
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and they tend to have high sensitivity to dispute rate seasonality.
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So I want you all to keep these in mind for the next part of our presentation.
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Now that you know where you fit,
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I'm going to pass this off to Ishan who will talk to you about our products.
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Ishan, take it away. Okay.
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Thanks, Cindy. And hi everyone.
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It's a room full of people who care about disputes. This is like my Coachella.
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Well, welcome. I lead product for disputes here at Stripe,
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and I spend a lot of time thinking about how you can solve the pain points in
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each of the quadrants you just saw. So now that you know where you fit,
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let's talk about what you can actually do.
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Now, if you're sitting in this room,
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you likely already know that disputes sit at the very end of the payments
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lifecycle.
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But maybe what you didn't know is that disputes can happen up to 540 days after
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the initial charge. That's almost two years after the charge,
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which is obviously a little bit crazy,
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but it's also what makes fighting disputes such an interesting challenge.
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And at Stripe,
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we make that even a little bit more interesting by taking that final step and
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instead of treating it like one step,
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we actually break that moment down into three layers of protection.
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The first layer is deflection.
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This is all about preventing the dispute before it actually happens.
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The second is resolution.
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This is about stepping in early before it actually becomes a dispute and
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avoiding the hit to your dispute rate. And finally, we have representment.
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Where the goal is to respond to disputes with strong data to try to win back
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your revenue. Now, before I walk through each one of these,
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I would like to ask everyone in the room, I'm curious,
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with just a show of hands, how many of you have actually ever filed a dispute?
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Okay, that's a lot more than I thought. Well,
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I'm not going to teach you how to file a dispute, but I will show you this.
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Your consumer's dispute experience starts when they open their banking app and
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they see something like this. Now, if I asked you,
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what is this charge here specifically?
I bet most of you couldn't tell me.
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So maybe you try to click into it and you'd see something like this,
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which is frankly still pretty confusing.
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But that confusion right there is one of the most common starting points for why
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consumers file disputes and sometimes commit friendly fraud. In fact,
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about one in eight consumers admit to it. And yes,
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sometimes it's intentional, but honestly,
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most of the time it's just purchase confusion,
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and that's what deflection was built to fix.
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We partner with networks like Verifi and Ethoca to integrate directly with the
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issuers so that we could completely change the experience, so that from now on,
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when your consumers open your banking app, they won't see something like this,
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but instead they'll see your business's name, logo,
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and if they click in to see more details,
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they'll get a full itemized digital receipt where they can see the order IDs,
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purchase descriptions, purchase quantities, tax breakdowns,
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and comprehensive contact details.
The goal of this product is very simple.
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Help consumers recognize the charge so they don't file the dispute,
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because the best way to fight disputes is to just never get them in the first
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place. On average,
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businesses using deflection see about a 2.4% reduction in dispute rates,
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and that compounds over time as your business grows.
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We've taken it a step even further by integrating with programs like Visa CE
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3.0, so that now,
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if a customer tries to file a fraudulent dispute and Stripe can prove that you
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and the customer have done business together in the last year,
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the bank actually has to block the dispute entirely.
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That little "file a dispute" button in the banking app just disappears.
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And companies like DesignCrowd, Shipt and Hostinger,
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they've blocked up to 11% of their Visa disputes this way.
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That's why I recommend this product for basically every archetype in the matrix.
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There's no integration, there's no cost, there's no downside.
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It's practically like taking vitamins for your disputes. Now,
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sometimes recognition isn't enough, and that's where the second layer comes in,
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resolution. When you turn this on,
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Stripe gets an early signal from the networks that a dispute is incoming,
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and that gives you a little bit of a window to step in before it becomes
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official. You can set up simple rules to resolve these disputes,
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and when you do, a few things happen. There's no longer a dispute fee.
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There's no operational effort. Your customers are getting a better experience,
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and maybe most importantly,
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these resolved disputes don't count towards your dispute rate.
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And that's what makes this one of the most powerful tools in your tool belt
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against network monitoring programs. Now,
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resolution at Stripe is differentiated by first,
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self-serve onboarding that's accessible directly in the Dashboard.
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So what used to take weeks of integration now just takes a few minutes,
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and I'll show you that in a second.
Second,
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you can set up simple resolution rules directly again in the Dashboard so that
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you decide what gets resolved and what doesn't. And with per-resolution pricing,
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you only pay for what you actually resolve.
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We also now offer backtesting so you can see the estimated impact of your rules
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before you even go live.
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We've built onboarding APIs specifically for platforms so you can help your
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connected accounts manage their dispute rates and soon users who don't want to
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manage custom rules at all can simply tell Stripe their desired dispute rate
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target and our AI will figure out the most cost effective way to get you there.
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On average, businesses using resolution saw a 60% reduction in dispute rates.
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And in some cases, if you're willing to set more aggressive rules,
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that's even higher. For example, AMC, Duolingo, Mastermind,
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and Reel.ai were scaling very quickly and used resolution to stabilize their
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dispute rates by up to 95%. Now,
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this is especially important for two user groups,
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users in the growth stage and those in the automation stage.
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If you're a fast-growing company like an AI startup and your dispute rate is
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climbing, you're worried about network monitoring programs, honestly,
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this is your silver bullet. And if you're already automated,
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this is how you keep your baseline healthy.
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Just resolve the disputes you weren't going to fight anyways.
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And zooming out for a second,
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the shift towards early resolution is happening everywhere.
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Just between 2022 and 2025,
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we saw the number of resolved disputes on Stripe grow by a factor of 11.
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This basically tells you that this is quickly becoming the default way that
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businesses across the globe are choosing to preserve their customer
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relationships and keep their dispute rates low. Now,
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let me show you how simple this actually is.
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Imagine I'm a florist and I'm selling bouquets online. Business is growing fast,
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but as a symptom of that, I just got hit with 500 disputes in a week. Obviously,
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I need to bring my dispute rate down very quickly,
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or I am at risk of paying thousands of dollars in network fines,
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$150 fees per dispute,
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and I could even lose my privilege to process payments online.
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So I'll go into my Stripe Dashboard here,
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and the first thing I'll do is I will go to my Settings, Payments,
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head on to Disputes, and the first thing I see are my prevention tools.
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So let's go ahead and turn on deflection first.
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Immediately I see that on the left side,
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all my details are actually already auto-populated. And on the right,
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I can preview exactly what my customers will see on their banking app.
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Instead of a generic payment amount with a statement descriptor,
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my customers will now see their business name, URL, phone number,
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where I'm located, a description of my business,
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and then next time an issuer tries to ask Stripe for more data on a transaction,
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Stripe will send whatever it has so that I can build a very enhanced digital
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receipt.
So I'll go ahead and click submit, and that's it.
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From now on,
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every single one of my consumers will see a much more clear picture of what they
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bought. Now let's go on to resolution. I'll click activate again.
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Now, if I wanted to be very aggressive,
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I could just choose to resolve all disputes. And in this case,
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it would reduce my dispute rate by 100%. And that's great,
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but I actually kind of want to fight a few of my disputes.
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So I'm going to go ahead and choose "write custom rule," and I can choose to
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write these rules with over eight different attributes.
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I could choose to write them by currency, statement descriptor, amount,
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reason code, card brand, and a few more.
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But what I like to do is fight any dispute that isn't fraudulent and is over
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$100.
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So let's write a rule for the opposite.
If the dispute is fraudulent
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and the amount in USD, since that's where I do business,
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or at least fake business, I'll click less than a hundred, preview my impact,
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and it seems like in this case, it'll reduce my dispute rate by 20%,
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which is kind of what I need right now. So I'll go ahead and click submit,
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and that's it. My dispute rate will start to decline immediately. Okay,
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let's move on to the final step in the funnel, actually winning your money back.
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You might have to change the slides. But before I get into that,
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let me ask you one last question.
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How many of you have actually ever lost a dispute because you never responded?
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And that could be because you missed the deadline, you didn't have time,
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you didn't have resourcing. Okay. Well,
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you're not alone because in 2025,
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the number on Stripe was $1.3 billion,
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and that's why we built Smart Disputes so that you never lose by default again.
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When a dispute comes in now,
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we will try to automatically build an evidence packet for you,
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and we'll wait until the deadline to submit it,
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so that if you want to handle it yourself, you definitely still can.
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But if you don't,
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then Stripe can still step in and turn what was going to be a guaranteed loss
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into a potential win.
Now that's just the first problem.
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The second is that many businesses,
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they don't know how to actually build a very strong evidence packet. Well,
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now you won't have to guess or ask your favorite LLM what to do every single
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time, because we took a step back and analyzed Stripe's dispute data.
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It's one of the largest disputes data sets in the world of over $5 billion worth
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of disputes a year, and we rebuilt the disputes experience from the ground up.
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So that now, when you open a dispute on Stripe,
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you won't just have some sort of form to fill out, but instead,
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you'll see an AI-recommended evidence strategy that is tailored to your reason
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code and your issuer on that dispute. You'll see your likelihood of winning,
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an AI summary of your cardholder's complaint.
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We'll score your packet as you build it so you know exactly how strong your
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evidence is and many more features that are designed to specifically help you
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win.
And for those who want to push their win rates even further,
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we've now improved Smart Disputes so that you can actually add your evidence to
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our packet. To explain that to you a little bit more,
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try to think of a packet as three different layers. First,
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there's data that Stripe has that you don't.
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We look across trillions of dollars of transactions across the Stripe network,
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and we see how a device, email,
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or identity has performed against other businesses on Stripe,
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and we pull those exclusive signals into your packet. Second,
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there's data that we both have.
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We will autofill all of that and enrich it so that you don't have to.
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And lastly, there's data only you have.
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These are things like tracking information, customer messages, or server logs.
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Now you can plug that directly into Smart Disputes and we will fold it into an
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AI optimized packet.
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We've even built automations into individual fields. For example,
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if you just give us a tracking number, we will go pull proof of deliveries,
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fulfillment histories,
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and even porch delivery photos from over 12 different shipping providers like
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FedEx and complete the story for you. On average,
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users recovered 18% more revenue with Smart Disputes,
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and those who added our AI recommended evidence are winning three times more
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often than those who don't. Now, since by default,
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Smart Disputes only fights disputes that we're going to time out.
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I recommend this product for everybody. It's practically free money.
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If you're early stage,
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you're probably not thinking about disputes very much right now,
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so just let us manage them for you. If you're a high growth business,
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let us fight the ones you didn't have time for. If you have mature operations,
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then maybe let us fight the ones that are far too expensive for you to fight.
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And if you're already automated,
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then augment your packets by combining them with ours and boost your win rate.
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Now, let me show you one more demo to see how this looks like.
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So let's pretend I'm a florist selling flowers online again,
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and I see that I just got a thousand dollar dispute,
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and I definitely cannot afford to lose this, but luckily,
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Smart Disputes is already available.
So I'll go ahead and click respond.
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Now I'm selling flowers, so I ship physical products. I'll answer that.
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I have not yet talked to my customer, so none of these apply to me,
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and that's it. Stripe is building a custom strategy tailored to my dispute.
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So the first thing I'm going to try to do is actually look at that strategy.
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We'll open the analysis and see that the customer is claiming that they never
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received their bouquet of roses,
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and they're acknowledging that they have not yet attempted to reach out to me
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before they filed this dispute.
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Stripe has also summarized the Visa dispute rules,
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and it clearly states that the highest impact thing I can do is to provide proof
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of delivery. So if I scroll down,
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I see that my evidence strength is actually already pretty high,
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which indicates that Stripe must have added something on my behalf already,
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but clearly what I'm missing is my shipping info.
So let's go ahead and add
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that. I ship with FedEx.
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Here's a tracking number and we'll click submit and Stripe is doing all the
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manual work for me.
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It's pulling fulfillment histories and building a detailed timeline of when my
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roses actually got delivered to the customer.
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So let's go ahead and review the evidence.
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Now I can see everything else that Stripe has added for me.
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I don't want to check everything, but let's spot check a few things.
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Policy documents, it looks like Stripe found my refund policy,
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cancellation policy.
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It's even extracted the key details and turned it into a narrative that can help
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invalidate the dispute.
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Another thing that I find interesting is this exclusive data from Stripe.
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It's clearly added some customer history by analyzing it across Stripe's
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network.
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It's found fraud detection patterns and it's added location and device details.
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Now,
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this is data that I would not have access to on my own.
So all this put together
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makes me feel pretty confident that I've got the best packet I possibly could
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here. So I'll go ahead and send response and that's it.
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What used to take me hours just took me a few minutes. Now I lied.
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I said this would be the last demo, but there's one more.
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So for those who are platforms or SaaS leaders in this room,
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I think let's pretend if you were selling or helping florists online sell
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flowers. I'm sure your customers are very good at what they do,
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but they're not dispute experts.
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And we've heard many times over that they keep asking platforms for help.
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Now you can help your customers with just two toggles.
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We'll go back to our Settings here and we'll go on Connect, Disputes,
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this is a new setting, and all you have to do is turn on auto-respond,
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and that's it.
From now on,
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all of your connected accounts will see the same experience that I just showed
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you, and every single time they get a dispute,
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Smart Disputes will try to build an evidence packet for them so they never lose
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by default. But let's take it one step even further.
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Let's try to monetize the product.
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So let's search a pricing tool and you'll see a new tab here for Smart Disputes.
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Let's click edit and I'll see you have three options.
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Smart Disputes bills me 30% every time a dispute is one.
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I could choose to pass that fee along. I could choose to absorb those fees,
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or I can actually monetize this product by setting my own sell rate.
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Let's say I set that at 35%, click save, confirm, that's it.
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Now, every single time I help one of my customers win a dispute,
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I will pocket a 5% margin.
I just created a brand new revenue stream with four
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clicks. Disputes are an inherent part of doing business online.
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They create trust in the ecosystem so that customers can buy things sight
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unseen. So while they're not going away anytime soon,
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the way you deal with them can change.
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My recommendation is deflect them when you can,
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resolve them early when it matters and fight the ones worth fighting so that
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when you put it all together,
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disputes stop being a cost center for you and become an automated system that
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protects your revenue. Cool. I see some questions. So let's see.
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The first one might be,
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how have LLMs and AI changed the landscape for disputes?
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Oh, my new favorite question. Well,
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first off, it's still kind of a work in progress. We're figuring it out.
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So there's lots of partnering with the networks.
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I think generally as an industry, we're still seeing where this goes.
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I think a lot of you probably know that,
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but I think it's time we all start thinking about it now, right?
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So what used to be just a buyer and a seller is now a buyer, seller, an agent.
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So let's say I want to go buy a rug.
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I have actually been doing that recently and find it very tedious.
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So I want a red orange wool rug, right?
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So if I tell my agent to go find that for me,
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we could run into some issues with color.
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So let's say a red polyester rug shows up on my doorstep. Now,
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am I going to dispute that?
I don't know. So what now the case will be is I,
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as the merchant have to prove at the time of purchase that I was transparent,
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it was clear,
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understood like the agent understood my product catalog
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and saw the color red-orange, right? So it kind of changes the entire...
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Instead of human eyes, you're working with metadata. So it's interesting.
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We'll see where that goes long term.
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Yeah.
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And another thing we're seeing is just the use of LLMs across the ecosystem.
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Issuers are starting to use more and more OCR to try to review and adjudicate
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your packets. And on the other end of the spectrum,
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you've got users who are building agents to try to fight disputes and you've
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just got kind of machines talking to machines.
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And that's where I think once your opponent is very machine driven,
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that puts the onus on you to be sure that your dispute packets are very clear,
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easy to read, and therefore will get scored appropriately.
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But another thing obviously we're seeing is that the networks have increased
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costs on disputes, especially when you lose them.
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And so an important thing to note in your automations as you build them is to
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not just be broader in what you fight, but also smarter.
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And that's kind of what Smart Disputes is built to do,
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right?
We try to use our AI to analyze all the data that we have and figure out
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how network rules are changing, how issuers are changing their behavior,
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what kind of data works where and when.
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And one of the things I think we're pretty proud of is that when our ML thinks
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that it's a reasonable chance that you will win this dispute with smart
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disputes,
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we actually waive our counter fees to kind of put skin in the game with you.
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Awesome. Cool.
408
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And more?
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Yeah.
410
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Okay. Visa just changed their monitoring program criteria,
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collapsing fraud and disputes.
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How can Stripe help me navigate and change and avoid fines?
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This is probably best for you.
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Okay. Yeah, the vamp. Everyone's a new favorite topic, right?
415
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So this last month, the rate went down to 1.5% from 2.2%,
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so that's obviously a change we're seeing.
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All the tools that Ishan just kind of covered in our talk are going to be your
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best bet. And in addition to that, we send notifications.
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So when we think you're trending towards potential concerning points,
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we'll let you know proactively so we can try to help you avoid landing in a
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program. And yeah, generally deflection, CE 3.0,
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resolution,
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those are going to be your best bets whenever you're kind of approaching a
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program.
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Question three.
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Let's do that one. That looks good. It looks exciting.
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All right. Smart Disputes. How does it work?
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Is it global and does it work with manually submitted documentation?
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How does it work with platforms?
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Okay. I can probably take this. So Smart Disputes is global.
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There's no restrictions on where it applies.
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Right now it only fights card disputes, not LPM disputes.
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That's maybe one restriction right now,
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but we're trying to solve that in the future.
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As for does it work with platforms? Yes, it does. Again,
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platforms should be considered of a few things.
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There's so many combinatorials you can do with how a platform is set up.
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The important thing is that you can be a user who either is liable for the
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dispute, is the merchant of record or is paying the fees,
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and that creates some different incentives to be aware of.
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But luckily with Smart Disputes,
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what we do is if you're a platform who is responsible for the disputes,
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we'll generate packets and you can choose to submit them and you'll be billed
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directly.
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But if you are a platform like a Custom Connect one who is passing fees through
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to your users,
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we will still build packets for your users and you can actually choose to white
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label and resell Smart Disputes and choose to add a markup, as I showed,
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to those Smart Disputes.
I think the other kind of thing this is getting
450
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at is like, how does this work with manual packets?
451
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So the way to think about it is there will essentially be two packets.
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When a dispute opens,
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you can either choose to fight it yourself with your own manual packet.
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You can add evidence to that and submit it as you normally do,
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or you can add evidence, that same evidence, to a Smart Disputes packet.
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And that's when you're starting to layer the data that we showed earlier,
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and that's definitely going to be the better way to win your disputes because
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you're going to have more data that you wouldn't have access to otherwise,
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but that's where you can kind of A/B test and see how it performs for you.
460
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Cool.
461
00:26:02.980 --> 00:26:03.970
All right. I think ...
462
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Want to do this one? If I'm new to payments, how should I think about disputes?
463
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Yeah. All right. So there's obviously the consumer angle.
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So definitely think about how your customer perceives your checkout,
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if there's a subscription, is it clear that they're signing up for one?
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Do I understand the terms of service? Kind of all that,
467
00:26:25.000 --> 00:26:27.380
I guess the human psychology element of signing up,
468
00:26:28.180 --> 00:26:31.140
because those are all things that you can use as evidence long term if your
469
00:26:31.160 --> 00:26:32.660
customer tries to claim like, "Oh,
470
00:26:32.660 --> 00:26:34.180
I didn't know I was signing up for recurring billing."
471
00:26:35.780 --> 00:26:38.600
Generally also the reality we live in is fraud will happen.
472
00:26:38.840 --> 00:26:42.920
So understand and try to mitigate fraud sooner than later.
473
00:26:43.480 --> 00:26:46.560
Long term, obviously that can drive your disputes up. Those are the,
474
00:26:47.160 --> 00:26:51.980
I would say clarity, transparency that usually goes a long way with customers.
475
00:26:52.700 --> 00:26:53.680
The only other thing I would add is
476
00:26:55.260 --> 00:26:58.260
disputes grow before you know it and you should definitely step in early and
477
00:26:58.300 --> 00:27:00.640
turn on some of these products, especially deflection,
478
00:27:00.740 --> 00:27:04.780
which is just going to help you reduce your dispute rights and study the
479
00:27:04.820 --> 00:27:09.000
different network rules because winning disputes is really about being very
480
00:27:09.060 --> 00:27:11.660
prescriptive to what the network asks for instead of just submitting random
481
00:27:11.720 --> 00:27:13.840
evidence and you'll be in good shape.
482
00:27:14.200 --> 00:27:15.033
Yeah. Awesome.
483
00:27:15.080 --> 00:27:16.740
Cool. That's all we have time for.
484
00:27:16.800 --> 00:27:18.120
Okay. Thanks everyone.