Operational - Articles on running an early-stage B2B SaaS
Over a year of running Swipekit, and having eaten a couple of chargebacks, here's all my knowledge on this topic - so you don't have the same mistakes I made.
When a customer starts paying for your SaaS, they are getting into a business relationship. When they believe that your have wrongfully charged that under these two circumstances, they may issue a chargeback:
Fraud charge - When a customer's card was stolen and someone else use their card without their authorization to pay for your product.
Being issued a chargeback means the business relationship has ended. This is when you need to immediately stop service to the customer.
About fraudulent chargebacks - some users will signup willingly to your service, then after some time, declare their transactions as fraudulent, eg they didn't sign up/pay themselves. Then they will chargeback.
Friendly fraud can happen when a user goes through their transactions, see a transaction that they may not recognize, and then subsequently do a chargeback.
