UK Small Ecommerce: Experiences with Chargebacks & Fraud?

[Josh_]

Hi UKBF,

I'm researching how small UK ecommerce brands handle rising chargebacks, fraud, and the time involved.

If you've dealt with this, I'd appreciate your insights:

• What strategies/tools worked well?
• What didn't work?
• What support/solutions do you wish existed?

This is purely for research - I'm not selling anything.

Please share your thoughts in this thread or message me privately. Recommendations for standout tools, services, or experts tackling chargebacks are also welcome.

Thanks!

 

[Ozzy]

I used to have a lot of chargebacks when I sold domain names many years ago, but have not experienced chargebacks in quite a few years now. In three businesses where I'm involved in taking card payments (these forums, a riding school, and an online gift shop) I cannot recall the last time in any of those three I saw a chargeback.

Are they on the rise, and I've just been lucky?

 

[fisicx]

Only ever had one chargeback. I disputed the claim and won.

 

[antropy]

I run a web agency and an online vape shop. The vape shop hasn't had any dodgy chargebacks but my web agency has had clients charge back blocks of hours they bought via PayPal after we had spent the time. In that case providing all the evidence necessary that we spent the hours and did the work did not prevent PayPal from siding with the buyer and stealing our money.

Paul.

 

[Josh_]

I used to have a lot of chargebacks when I sold domain names many years ago, but have not experienced chargebacks in quite a few years now. In three businesses where I'm involved in taking card payments (these forums, a riding school, and an online gift shop) I cannot recall the last time in any of those three I saw a chargeback.

Are they on the rise, and I've just been lucky?

Thanks for sharing — sounds like you’ve built some solid systems! Interesting that chargebacks haven’t been an issue across those businesses.

And out of curiosity — if chargebacks ever did become a problem again, is there anything you’d look for in a tool or partner?

Appreciate the insight!

 

[Ozzy]

if chargebacks ever did become a problem again, is there anything you’d look for in a tool or partner?

To be honest, I'd probably increase the thresholds of the tools in Stripe that check the card payment details (address verification, geolocating payment to address, ban VPNs, and so on).

If it became a massive problem I'd also consider ID verification on orders, another feature of Stripe which is the payment gateway I use.

 

[antropy]

Thanks for sharing — sounds like you’ve built some solid systems! Interesting that chargebacks haven’t been an issue across those businesses.

And out of curiosity — if chargebacks ever did become a problem again, is there anything you’d look for in a tool or partner?

Appreciate the insight!

Thanks ChatGPT

Paul.

 

[Josh_]

Only ever had one chargeback. I disputed the claim and won.

Thanks for chiming in — sounds like you handled it well! Curious, was the dispute process pretty straightforward for you, or more of a headache than it should’ve been?

 

[fisicx]

Thanks for chiming in — sounds like you handled it well! Curious, was the dispute process pretty straightforward for you, or more of a headache than it should’ve been?

Dead simple. Clicked on the link in the email. Filled in the form and job done. Got the reply a couple of days later.

 

[antropy]

Dead simple. Clicked on the link in the email. Filled in the form and job done. Got the reply a couple of days later.

You know you're replying to an AI?

Paul.

 

[Josh_]

Oof — that sounds incredibly frustrating, especially when you’ve clearly done the work. I’ve heard a few similar stories where PayPal seemed to side with the buyer no matter the evidence.

Do you still use PayPal for client payments, or have you shifted away since then?

 

[Josh_]

Dead simple. Clicked on the link in the email. Filled in the form and job done. Got the reply a couple of days later.

Out of curiosity, was it a chargeback you were expecting, or did it come out of the blue?

 

[Ozzy]

Out of curiosity, was it a chargeback you were expecting, or did it come out of the blue?

Out of curiosity, who 'expects' chargebacks?

 

[Paul Norman]

I have been involved in online stores selling clothing and trainers for many years, although less so now.


First, we used a payment gateway that provided some (limited) help in detecting fraud at the point of order. Beyond that, it is a matter of developing a feel for something that does not seem quite right - unusual orders, a mix of sizes, a difference in where the card is registered against where the delivery address is. Never be worried about phoning the customer to check if you are not certain - a polite enquiry can reassure you, reassure the customer, or identify a problem.

Chargebacks have, thankfully, always been at a fairly modest level. If you get a customer return, or query, though, be very aware that distance selling is very much on the side of the consumer. Refund early if that is where the query will go. I think it possibly depends a bit on what you are selling, but some modest level of returns is part of the cost of running a store like that.

Again, avoid legitimate chargebacks by checking your dispatch is accurate and timely. Dodgy ones? Contest them if the value is worth it, but to be fair the level has been pretty low over the years.

 

[Josh_]

To be honest, I'd probably increase the thresholds of the tools in Stripe that check the card payment details (address verification, geolocating payment to address, ban VPNs, and so on).

If it became a massive problem I'd also consider ID verification on orders, another feature of Stripe which is the payment gateway I use.

I’m pulling together perspectives like yours into a few actionable experiments on our end — would you be open to a quick 15-minute chat sometime this week? No pitch, just want to dig a bit deeper into what’s working for you and where the gaps might still be.

In return, I’d be happy to share what I’m seeing from others in similar positions — tools they’re testing, workflows that are saving them time, and some early ideas that seem promising.

Happy to work around your schedule if you’re up for it!

 

[Josh_]

You know you're replying to an AI?

Paul.

Sure, but so what?

I’m still the one asking the questions, digging for insights, and trying to solve a real problem. If a tool helps me express that more clearly or saves me time, I don’t see the harm — especially when the intent is genuine.

Appreciate you engaging either way.

 

[Josh_]

I have been involved in online stores selling clothing and trainers for many years, although less so now.


First, we used a payment gateway that provided some (limited) help in detecting fraud at the point of order. Beyond that, it is a matter of developing a feel for something that does not seem quite right - unusual orders, a mix of sizes, a difference in where the card is registered against where the delivery address is. Never be worried about phoning the customer to check if you are not certain - a polite enquiry can reassure you, reassure the customer, or identify a problem.

Chargebacks have, thankfully, always been at a fairly modest level. If you get a customer return, or query, though, be very aware that distance selling is very much on the side of the consumer. Refund early if that is where the query will go. I think it possibly depends a bit on what you are selling, but some modest level of returns is part of the cost of running a store like that.

Again, avoid legitimate chargebacks by checking your dispatch is accurate and timely. Dodgy ones? Contest them if the value is worth it, but to be fair the level has been pretty low over the years.

Thanks for sharing — Totally agree that having a feel for weird patterns and just picking up the phone can go a long way. I’ve been chatting with a bunch of store owners lately, and it’s interesting how many say the same — that the tech helps, but gut calls still matter.

Curious though — if chargebacks ever started creeping up again, would you ever consider having someone else handle the messy parts? Just trying to understand where people draw the line between DIY and outsourcing.

Happy to share back anything I learn from others too if it’s helpful!

 

[Paul Norman]

Thanks for sharing — Totally agree that having a feel for weird patterns and just picking up the phone can go a long way. I’ve been chatting with a bunch of store owners lately, and it’s interesting how many say the same — that the tech helps, but gut calls still matter.

Curious though — if chargebacks ever started creeping up again, would you ever consider having someone else handle the messy parts? Just trying to understand where people draw the line between DIY and outsourcing.

Happy to share back anything I learn from others too if it’s helpful!

I guess the straight answer to your question is yes. If the cost of it all became an issue I have to get some help in.