Stripe's Early Fraud Warnings (EFW) are like smoke before the fire. They don't guarantee a chargeback, but if you don't move fast, they often become one. Many merchants see the alert, freeze, and wait. But that delay can cost you. This guide breaks down how to respond to Stripe EFW notices and reduce the odds they escalate into actual disputes.
What Is a Stripe EFW?
Stripe EFW stands for Early Fraud Warning. It's part of a system shared by Visa (via Verifi) and Mastercard (via Ethoca) that alerts merchants when a customer's bank flags a transaction as potentially fraudulent. Stripe passes this alert on to you, giving you a chance to respond before the bank turns it into a full chargeback.
EFW alerts are usually triggered when:
- A cardholder contacts their bank, claiming they didn't make a purchase
- A bank's fraud detection system spots suspicious activity
- The card was recently reported lost or stolen
The alert usually lands in your Stripe dashboard or inbox, and you'll only have 24 to 48 hours to act.
Do All EFWs Turn Into Disputes?
Not always. Some alerts never escalate, especially if the customer realizes the charge was valid. But waiting and hoping is a gamble. If you do nothing, many EFWs do become chargebacks, and those hurt your dispute ratio.
According to Stripe, responding to EFWs promptly can stop a dispute before it hits your account. But you need to know what actions actually make a difference.
How to Respond to Stripe EFW Notices
1. Check the Order Fast
Start with the basics. Look at the order details and customer profile. Is this a regular customer? Did they order from a known IP address or physical location? If something looks suspicious, like mismatched billing info or high-risk products, flag it.
2. Cancel and Refund if Fraud Is Obvious
If the signs of fraud are clear, refund the transaction immediately. This can prevent the dispute and avoid penalties from Visa or Mastercard. Once refunded, Stripe automatically informs the card network, which often stops the alert from becoming a formal chargeback.
3. Contact the Customer if You're Not Sure
If the transaction looks valid, try reaching out to the customer using the email or phone number they provided. A simple "Did you mean to make this purchase?" can sometimes stop a dispute. If they confirm, keep the message as part of your evidence.
4. Track Repeated Alerts
If you're getting multiple EFWs, it's a pattern. Look at what's causing them. Are they coming from the same product line? Are chargebacks rising in a particular region? Identifying patterns early can help you adjust your fraud settings or marketing practices.
5. Use Stripe Radar Custom Rules
Stripe Radar lets you set up fraud filters. You can use custom rules to flag high-risk orders, block certain countries, or require 3D Secure for specific transactions. This lowers the chance of getting EFWs in the first place.
6. Monitor the Visa Dispute Monitoring Program (VDMP)
If too many disputes hit your account, Visa may place you into VDMP. This adds fines and extra scrutiny. A rising EFW count can be an early sign you're heading toward that threshold. Don't ignore it.
7. Automate EFW Management with Chargeback Tools
Manual EFW triage takes time. If you're seeing multiple alerts per week, consider using tools like Chargeblast to automate responses, issue refunds faster, and store documentation in case disputes follow.
When Should You Refund an EFW?
Refund if:
- The customer says they didn't authorize the charge
- The billing and shipping info don't match
- You see signs of bot or card testing activity
- You can't reach the buyer after contacting them
Don't refund if:
- The customer confirms the charge
- You have strong evidence of delivery or use
- The charge was already refunded before the EFW
- You've flagged the transaction as part of a loyalty or repeat customer order
What Happens If You Ignore an EFW?
If you do nothing, it may escalate into a dispute. And if that happens, you'll likely lose the chargeback. Why? Because the cardholder has already reported it as fraud to their bank. Your best shot at controlling the outcome is acting before it reaches that point.
Conclusion
Stripe EFW alerts are more of warnings rather than a random trigger. Treat them like the early signs of a bigger problem. Acting fast can save your revenue, lower your dispute rate, and keep you out of Visa's monitoring programs. Whether it's a refund, investigation, or outreach, take action quickly.
FAQ: Stripe EFW and Dispute Handling
What does a Stripe EFW mean?
A Stripe EFW is a fraud alert triggered by a cardholder or bank. It means the transaction is being questioned for potential fraud, but hasn't yet become a chargeback.
How long do I have to respond to a Stripe EFW?
Usually 24 to 48 hours. Stripe passes the alert from the card networks to you, and acting quickly can stop a dispute.
Can I prevent a chargeback after getting an EFW?
Yes, if you refund or resolve the issue before the bank processes the dispute. This is why a quick response is important.
Does refunding an EFW count against my dispute rate?
No. Refunding before the dispute is filed can actually protect your dispute ratio and help you avoid monitoring programs.
Will Stripe automatically refund an EFW?
No. Stripe notifies you, but it's up to you to investigate and refund manually or through your tools.
Can Chargeblast help with Stripe EFW alerts?
Yes. Chargeblast helps automate EFW responses, flag high-risk orders, and track alert trends to prevent escalation.
Stay Ahead of Disputes Before They Pile Up
Stripe EFWs are early warning signs, but they don't come with second chances. Chargeblast lets you respond instantly, automate refunds, and track patterns before chargebacks start stacking. For high-volume stores, it's one less thing to worry about.
Ready to make chargeback management easier? Book a demo with Chargeblast today.
