Answered

Stripe Triggers Fraud Alerts With Many Banks

First of all great product, except for the issues with the most important stage of the sales process... the checkout system.



Problems with Stripe checkout systems...



1) $1 Stripe verification triggers fraud alert from many banks in the USA (this is because it was common for scammers to take little bits of money out of an account before stealing larger amounts)



2) For many of my USA customers any transactions outside of the USA can be a trigger for fraud protection (this is stated on Stripe website)





As a result of these to factors I was seeing a 50% credit card error rate when using Stripe. I know this because I had customers email complaining that there cards have credit and that the bank called them to ensure that it was not a fraudulent transaction.



What's worse is that I've had customers try up to 7 times to charge their card and they were declined each time due to banks fraud protection, the thing with this is that the customers then email me accusing me of fraud because of 7 different $1 verification charges showing on their card statement.



I understand that Stripe uses the $1 verification to prevent fraud, however this is a case of causing more issues than it solves (bank fraud triggers and customers not happy with $1 charge), personally I would rather refund the 1 in 100 fraud purchases that have 1 in every 2 sales declined due to back fraud protection being triggered.



I started using PayPal as Stripe was losing too many sales, however some people don't like using PayPal so I've decided to use a combination of both.



So as a result I would like to be able to edit the current error message that shows when a card is declined to potentially save a sale if a customers uses Stripe.





Solutions...



1) Get rid of $1 verification as these are digital products (would be different if it was physical goods) the risk of customers using a fake credit card is no way near the customers you lose by using the $1 verification charge. (but I doubt this is going to happen)



2) Therefor a band-aid solution is to use a combination of PayPal and Stripe, for the customers that use the Stripe payment gateway and are declined I would like to be able to edit the error message to provide more information to the

customer and potentially save the sale (instead of the customer leaving in frustration) "We are currently experiencing difficulties processing your payment on our website, we recommend that you checkout with PayPal who also accept credit cards.





I have invested 100's of hours racking my brain trying to find the best solution to reduce cc decline rates due to fraud alerts, I hope you guys can help.
Answer Hi Clinton,

1) There's nothing we can do about the $1 verification that Stripe does. They do this internally and we have no control over it.

https://support.stripe.com/questions/why-does-my-customer-see-a-1-charge-when-their-payment-failed

2) It's not possible to edit the error message on the checkout page as these error messages come from the Stripe. If you want implement a custom solution, you can do this on your own. Anytime there a message to be displayed to the customer it's included in the 'message' parameter in the URL:

http://www.screencast.com/t/pzyOCHyZNEE

The [MM_Form_Message type='error'] SmartTag is responsible for outputting this message on the screen. You could remove this SmartTag and then process the error messages yourself and determine what you want displayed to the customer.
Thanks mate, I will look into it. Hopefully sometime in the near future Stripe will have an alternative to the $1 verification charge. Keep up the good work.

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