A global educational AI tool trusted by over three million students, including those at Stanford, MIT, and Oxford, was seeing impressive growth. But behind the scenes, the company faced a growing challenge: managing a surge in friendly fraud and keeping dispute rates below critical thresholds.
The Challenge: Friendly Fraud at Scale
Despite leveraging Stripe’s extensive payment ecosystem, including Payments, Billing, Link, and Radar, the lean team was overwhelmed by a rising tide of friendly fraud. These disputes, filed by legitimate customers claiming fraud, pushed the company dangerously close to card network monitoring programs like Visa’s VDMP. With a low win rate of around 10% and hundreds of hours spent battling disputes, the team needed a solution that could prevent chargebacks from happening in the first place.
The Solution: Chargeblast
That’s when the team discovered Chargeblast, a chargeback management software designed to intercept disputes before they’re officially filed. Once installed (a 10-minute process), Chargeblast sent real-time alerts as soon as customers initiated disputes. The team could then intervene—often by refunding the customer—before the issue escalated. This proactive approach not only reduced friendly fraud but also helped protect their account standing with card issuers.
The Results: Real-Time Impact, Long-Term Gains
- 96% drop in dispute activity
Dispute rates fell to nearly zero within two weeks, thanks to 99% alert coverage across all transactions. - 2% increase in authorization rates
Lower dispute volume led to better payment acceptance, translating into a meaningful revenue lift. - Hundreds of hours saved each month
With disputes off their plate, the team refocused on growth, using Stripe’s revenue automation tools to scale more efficiently.
In the words of the company’s Head of Growth, “Fighting disputes consumed so much time, and it was discouraging to see a low win rate. We were in search of an automated solution that could help us prevent disputes altogether.”
Chargebacks? Chargeblast.
Chargeblast is the chargeback mitigation platform built for speed, scale, and peace of mind. With a seamless Stripe integration and 99% alert coverage, it helps merchants resolve disputes before they ever get filed. Chargeblast frees your team from manual workflows so you can focus on what actually drives growth.
Ready to cut your dispute rate and reclaim lost revenue?
