SaaS Chargeback Costs: How a $10 Payment Resulted in $43.95 in Fees
By
evermike
8mo ago· 4 min readenInsight
75/100
Toasty
Bagelometer↗
Crisped on the outside, thoughtful enough on the inside.
Score75TypeanalysisSentimentnegative
Summary
The article details the author's frustrating experience with SaaS chargebacks through Stripe, where a $10 customer payment resulted in $43.95 in fees and penalties. The author explains their company's preventive measures including clear billing notifications, no upfront credit card requirements, and transparent invoicing, yet still faces costly chargeback disputes that disproportionately penalize small businesses.
Key quotes
· 4 pulledWe run several SaaS products at Everhour, all billed through Stripe. Majority of the time everything works fine, but sometimes we get chargebacks.
We don't ask for a credit card until the moment of subscription. A few days before each renewal, we send an email notifying the customer about the upcoming charge.
Both the invoice and the bank statement clearly display the product name so the customer can easily identify us.
The $10 Payment That Cost Me $43.95 — The Madness of SaaS Chargebacks
The $10 Payment That Cost Me $43.95 — The Madness of SaaS Chargebacks We run several SaaS products at Everhour, all billed through Stripe. Majority of the time everything works fine, but sometimes …
