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Handling Stripe Disputes

What to do if a customer disputes a payment

Louise Dollimore avatar
Written by Louise Dollimore
Updated over 2 weeks ago

When a customer raises a payment dispute (also called a chargeback) through their bank or card provider, Stripe alerts Ooooby and temporarily withholds the disputed amount from your payouts.

You won’t need to log into Stripe to handle disputes. Ooooby manages the process on your behalf. If a dispute is raised, we’ll contact you to request any supporting documentation, gather the evidence, and submit it to Stripe for review.

What is a dispute?

A dispute happens when a customer questions a charge on their statement. This can happen for several reasons:

  • They don’t recognise the charge

  • They believe they didn’t receive the product or service

  • They believe the charge is unauthorised

  • They are dissatisfied with the purchase

When a dispute is opened, Stripe:

  1. Removes the disputed amount from your balance.

  2. Requests evidence to prove the charge was valid.

  3. Passes this information to the customer’s bank, which makes the final decision.

Stripe charges a £15 dispute fee for every case, regardless of the outcome. You can choose to challenge the dispute - this incurs an additional £15 dispute challenge fee.

If you challenge and win the dispute, you keep the payment and challenge fee but still pay the original £15 dispute fee. If you lose, you lose the payment and both fees.


How you’ll be notified

Stripe will send Ooooby the dispute details.

Ooooby will then email you with:

  • Customer details

  • Dispute reason

  • Summary of any evidence already on file

  • The deadline for providing more information


Your options when a dispute is raised

When a dispute is raised, you have three possible responses:

  1. Accept the dispute – lose the disputed amount and pay a £15 dispute fee.

  2. Counter the dispute and win – keep the disputed amount and pay only the £15 dispute fee.

  3. Counter the dispute and lose – lose the disputed amount and pay both the £15 dispute fee and the additional counter-dispute fee.


How the response process works with Ooooby

Since you can’t upload evidence yourself:

  1. Ooooby receives the dispute notice from Stripe.

  2. We email you.

  3. You send us your evidence:

    • Proof of delivery (tracking number, courier confirmation, delivery photo)

    • Copies of customer communication (emails, messages, call notes)

    • A copy of your Terms & Conditions, especially if they mention delivery timelines, refunds, or payment terms

    • Any email confirmations or invoices sent to the customer that clarify the payment type (advance/arrears)

  4. Ooooby compiles and uploads the evidence to Stripe.


Gather strong evidence quickly

Focus on:

  • Confirmation emails.

  • Copies of all customer messages and responses.

  • Clear Terms & Conditions or cancellation/refund policy.

  • Payment confirmation emails.

💡 Make sure your payment confirmation emails clearly state:

  • Whether payment is taken in advance or in arrears

  • How to contact you for issues

This helps prevent disputes in the first place.

For more information on updating your email templates, please look at these two articles:
Guide to Automated Customer Emails on Our Platform


What happens next

After we submit your evidence to Stripe, the customer’s bank will review the case. This process can take up to 75 days. Stripe will then update Ooooby with the outcome:

  • Dispute won – funds are returned to you, but you still pay the £15 dispute fee.

  • Dispute lost – funds remain with the customer, and you pay the £15 dispute fee (plus any counter-dispute fee if applicable).


How to reduce disputes in the future

  • Provide detailed product descriptions and photos.

  • Send confirmation emails promptly.

  • Keep copies of all customer communications.

  • Offer excellent customer service; sometimes a quick reply can prevent a dispute before it starts.

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