deal with first chargebacks from Braintree

[chadwhitacre]

https://gratipay.freshdesk.com/helpdesk/tickets/4432
https://gratipay.freshdesk.com/helpdesk/tickets/4433
https://gratipay.freshdesk.com/helpdesk/tickets/4434
https://gratipay.freshdesk.com/helpdesk/tickets/4435

[chadwhitacre]

Picked up two more:

https://gratipay.freshdesk.com/helpdesk/tickets/4508
https://gratipay.freshdesk.com/helpdesk/tickets/4509

Braintree's quarterly newsletter links out to a blog post about Visa's revised chargeback program which gives some thresholds. The lowest threshold is:

75 or more chargebacks and .75% or more chargeback-to-sales count ratio

[chadwhitacre]

That's 75 chargebacks in 10,000 transactions before they start paying attention to us.

[chadwhitacre]

... in a month, I think.

[chadwhitacre]

I find 149 successful Visa sales during this month. With 6 chargebacks that's 4%, but thankfully they ignore small volumes like ours.

[chadwhitacre]

So we're nowhere close to Visa's radar, but we're still left with the question: what happened here? How did we end up with chargebacks? What do we need to change to avoid this in the future?

[chadwhitacre]

I've merged all of the Freshdesk tickets into one so we can use that for private notes as needed: https://gratipay.freshdesk.com/helpdesk/tickets/4432.

[chadwhitacre]

Hmm ... looks like we got duplicate email notifications. We only have three disputes open.

[chadwhitacre]

Same ~user account for all three charges. I've marked them suspicious, but it links to a Facebook account that is now "not available at the moment" so I'm not sure they could sign in to Gratipay anyway.

[chadwhitacre]

The three charges in question are the only ones we made on this card. There is a failed transaction in the fourth week. This is all back in February—the 4th, 11th, 18th, and 25th.

[chadwhitacre]

I forgot to keep track of the normal review.

https://github.com/gratipay/violations/issues/25

Ah, the sands of time ... ⏳ :-)

[chadwhitacre]

what happened here? How did we end up with chargebacks?

Fraud (as opposed to user confusion, i.e., they forgot that they set up the payment).

What do we need to change to avoid this in the future?

Be more careful reviewing accounts. As this starts happening with more frequency we'll need to collect more info (IP address, etc.) and automate fraud flagging.

I think for now we just accept these three chargebacks and be more careful during user review. Sound right @clone1018 @rohitpaulk et al.?