Stripe Chargebacks for Non-Residents

Chargebacks are customer-initiated refund disputes filed with their card-issuing bank. Stripe forwards chargebacks to merchants who can dispute them. Non-resident Wyoming LLC owners face the same chargeback rules as US merchants.

Answer

Chargebacks are disputes initiated by cardholders with their issuing bank claiming an unauthorized or invalid charge. Stripe charges merchants a $15 chargeback fee plus the disputed amount. Merchants can dispute chargebacks via Stripe's dispute portal by providing evidence (product delivery proof, customer communication, refund policy). Chargeback rates above 1% trigger Stripe risk review and potentially account holds. Non-resident Wyoming LLC owners face the same chargeback rules and processes as US merchants.

By Zawwad, Founder & CEO, WyomingLLC by Topslice LLC.

Last updated May 20, 2026

How chargebacks work

Customer disputes a charge with their card-issuing bank
Bank issues a provisional credit to customer and notifies Stripe
Stripe debits merchant account for disputed amount plus $15 fee
Stripe notifies merchant via dashboard
Merchant has 7 to 21 days (varies by network) to submit evidence
Bank reviews evidence and decides outcome
If merchant wins, Stripe refunds disputed amount (but $15 fee is non-refundable)
If merchant loses, customer keeps the credit

Common chargeback reasons

Unauthorized transaction (fraud)
Product not received
Product significantly not as described
Cancelled subscription not honored
Duplicate charge
Credit not processed

How to dispute (win) chargebacks

Submit response via Stripe Dashboard within deadline
Provide tracking number / delivery proof for physical goods
Provide customer email communication showing acceptance
Provide refund policy clearly displayed on website
Provide product or service usage logs for digital goods
Provide signed terms of service or customer acceptance
Stripe Radar settings can pre-block known fraud patterns

Prevention

Use 3D Secure for high-value transactions
Honor refund policy quickly when customers request
Clear product descriptions matching what is delivered
Strong customer service email response time
Keep chargeback rate under 1% to avoid Stripe risk review

Frequently asked questions

What is the chargeback fee?

$15 per chargeback, non-refundable even if you win the dispute.

How long to respond to a chargeback?

7 to 21 days depending on card network. Stripe shows specific deadline in the dashboard.

Will high chargebacks close my Stripe account?

Stripe places accounts on risk review at over 1% chargeback rate. Persistent high rates can lead to account closure.

Does the chargeback fee come from my US bank?

Stripe debits your Stripe balance first. If insufficient, Stripe debits your linked US bank account.