How Tim’s Coffee avoided a Stripe shutdown & slashed chargebacks by 89% with Chargeback
The Challenge
Tim’s Coffee is a Shopify store selling coffee equipment for businesses and home use.
They came to us with a problem: Stripe warned them that their chargeback rate was too high.
The chargeback rate presented three problems:
- Slow payouts and money hold - hurting cash flow
- Time wasted on Stripe - time they could have spent doing more important things
- Stripe shutdown - existential risk
The slow payout was problematic because they needed to pay the brand before delivery. This delayed shipping and made it hard to scale the marketing efforts.
The second issue was constantly sending proof to Stripe. This took time and effort that they could have used for more important tasks.
The third problem was the reason they contacted us. Stripe just warned them about a potential shutdown due to the chargeback rate.
This warning posed an existential risk to the business because the profit margins were too small to afford to use a high-risk payment processor.
The goal was clear: reduce the chargeback rate quickly to remove the risk of account closure.
Summary: Stripe started delaying payouts and even warned about a potential shutdown, which posed an existential risk to the business.
The Solution
As they contacted us, we knew that we needed to act fast.
- We helped them create an account and integrate Stripe, and we got up and running in less than 12 hours.
- They then turned on Ethoca and CDRN.
- We started automatically refunding chargebacks for orders above $300—any order above that they would fight.
We aimed to remove them from Stripe’s high-risk program and avoid money holds.
Summary: We set them up and had them running in 12 hours. Then, we automatically refunded chargebacks below $300.
The Results
The results were quick and clear. At first, we reduced the chargebacks by 89%. Eliminating the risk of account closure and stopping all money holds after a couple of weeks.
"I sleep so much better at night now, knowing Stripe won't kick us out or hold our money for months."
- Tim Lee, Founder of Tim’s Coffee.
This improved cash flow, increased customer satisfaction, and enabled better marketing efforts.
Since we started working with them three months ago, they have grown their brand by 31%. Breaking a 14-month plateau in growth.
We also saved them around 9 hours weekly from Stripe headaches. This includes sending in proof and responding to chargebacks.
Summary: We reduced chargebacks by 89%, eliminating high-risk status and money holds.
About Chargeback
Chargeback is a leading chargeback prevention service. Setup takes just 2 minutes, and you can go live within 12 hours.
We guarantee reduced chargeback rates, and you only pay per chargeback prevented. Ensuring you get value for every penny.
Discover how Chargeback can protect your business. Book your free demo today.