[GUIDE] Reducing Stripe Chargebacks by 80% (Risk Rules)

[JackaL]

[GUIDE] Reducing Stripe Chargebacks by 80% (Risk Rules)

If your e-commerce store hits a chargeback rate of over 1%, Stripe will permanently ban your account and hold your funds for 120 days. You cannot rely on default settings. Here is how to configure Stripe Radar to block fraudulent transactions automatically.

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Essential Radar Rules to Implement:
Go to your Stripe Dashboard -> Radar -> Rules, and add the following custom block rules immediately:

1. Block Proxy/VPN IPs: Fraudsters rarely use their home IP.
   Block if :ip_country: != :card_country: and :is_anonymous_ip: = 'true'
2. High-Velocity Declines: Card testers will try multiple stolen cards on your checkout page. Stop them after 3 attempts.
   Block if :total_declines_per_ip_address_in_last_24_hours: > 3
3. Distance Verification: If the billing address is 1000+ miles away from the IP location, it is highly suspicious.
   Review if :distance_between_ip_and_billing_address: > 1000

Pro Tip: Always enforce CVC and AVS (Address Verification System) checks. Transactions processed without matching AVS are an automatic loss for the merchant in a chargeback dispute.