Stripe is friendly to "friendly fraud"

2 hours ago

Friendly fraud is a type of chargeback abuse that payment systems struggle to prevent, despite having advanced detection tools.
A merchant experienced two fraudulent disputes from a customer who received products but lied about delivery, resulting in lost money, products, and fees.
The merchant provided evidence to Stripe, including screenshots of customer gloating, expecting action like reporting to fraud networks or using data for machine learning.
Stripe's response indicated they do not use evidence from one merchant to create cross-merchant fraud signals or take action against the customer's details for other merchants.
Stripe recommends using Radar rules to block the customer from future purchases with the same merchant, often requiring an upgrade, but this does not protect other merchants.
Small merchants have little leverage in disputes; banks make final decisions, and new evidence may be too late to submit, allowing fraudsters to repeat schemes elsewhere.
The situation highlights a gap between automatic blocking and limited action, with Stripe appearing ineffective against post-transaction chargeback abuse.

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