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Understanding Fee Implications with Stripe Express: Refunds and Disputes

Refunds: What Happens to Fees?

  • Scenario: When a donation is refunded, the donor receives the full amount, including any processing fees they might have covered. For instance, if a donor contributes $100 and also pays the processing fee of 2.9% + 30¢, their total payment is $103.20.
  • Merchant's Responsibility: While the donor is fully reimbursed, the processing fee charged by Stripe is not refunded to the merchant. Therefore, this fee amount ($3.20 in our example) is debited from your Stripe merchant account. If this results in a negative balance, Stripe will cover the shortfall by transferring funds from your connected bank account.

Disputes: Handling and Charges

  • Process: If a donor disputes a payment through their bank or card issuer, it triggers a dispute process with Stripe and BetterUnite.
    • The disputed payment is immediately held by Stripe from the platform account, BetterUnite.
    • The disputed payment is then reversed out of your connected Stripe account until dispute is resolved
    • A standard Stripe dispute fee is charged to the connected Stripe account
    • BetterUnite submits evidence of purchase to the financial institution that facilitated the Stripe dispute and there's a waiting period for a resolution (can be up to several weeks)
    • If the dispute is won, then the payment is added back to your Stripe account
    • If the dispute is lost, then the payment is refunded in full, and refund fees are applied
  • Fee: Each dispute incurs a fixed charge of $15 by Stripe, which is debited from your connected account.
  • Resolution: The handling of disputes may lead to a refund. If a refund is issued, it follows the process described above, including the non-refundable nature of the processing fees.

Navigating Financial Transactions with Confidence Our integration with Stripe Express is designed to provide transparency and ease in managing your financial transactions. We understand that navigating refunds and disputes can be complex, and we're here to support you every step of the way.

For more detailed information and guidance, feel free to reach out to our support team or refer to our comprehensive Stripe Express Guide.

Need Additional Help?

We're here to assist you in any way we can. Don't hesitate to reach out to support@betterunite.com

Let's go do some good.