How Union Handles Disputes (Chargebacks)

A dispute occurs when a cardholder questions a payment made to your business through their card issuer. To initiate a chargeback, the issuer files a formal dispute with the card network. This immediately reverses the payment and pulls the funds—along with one or more network dispute fees—from Stripe.

Afterward, Stripe debits your account for both the payment amount and any dispute-related fees

Stripe Dispute Fee Update as of June 17,2025

Due to increased card network costs, Stripe now charges a new $15 dispute counter fee, which is only refunded if the dispute is won. This fee is in addition to the existing non-refundable $15 processing fee.

Union Dispute Response Strategy

After analyzing dispute outcomes across the platform, Union has implemented the following guidelines to help minimize unnecessary costs.

Dispute Thresholds:

Union will automatically respond to disputes of $75 or more.
Disputes under $75 will be automatically Accepted
Exception: If the dispute reason is product_unacceptable , Union will always respond, regardless of the amount.

If you'd like to discuss a custom threshold for your organization, please reach out to support@union.fit

Why a $75 Threshold?

Union analyzed dispute data from the past year as part of a broader six-year review. With Stripe’s updated fee structure in place, we found that disputes under $75 rarely led to meaningful recovery and often cost more to pursue than they returned. Disputes at or above $75 had stronger outcomes, with win rates over 30%, and certain dispute reasons—like “product_unacceptable”—had win rates above 60%. This strategy allows us to prioritize high-confidence cases and offer a more sustainable and effective dispute response on behalf of our clients.

Stripe and industry data show that dispute win rates typically range from 25–35%, depending on the type of dispute and the evidence submitted. For Union clients, disputes at $75 or above tend to fall within this range or higher, especially when the dispute reason is something like “product_unacceptable,” which has shown success rates over 60%. By focusing on transactions where the potential for resolution is stronger, our approach helps minimize fees and maintain account stability.

Why this matters to you:

Win rates for disputes at or above $75 align with industry averages and offer better chances of recovery
A strategic approach helps minimize avoidable fees and keep your Stripe account in good standing
This model translates real data into measurable results—without adding extra work on your end

Union's Standard Process

When Union is notified of a dispute that meets our response threshold, we may contact your team if additional guidance is needed — especially in cases that involve:

A high dispute amount
Multiple disputes from a single customer
Fraud-related reasons
Claims of duplicate charges

Dispute Debits

When a dispute is received, Stripe and Union will debit your account for the disputed amount plus the $15 processing fee. This debit remains in place until the cardholder’s bank issues a final decision.

If the dispute meets Union’s response criteria, we’ll either submit evidence on your behalf or accept the dispute based on your preset rules.

In certain cases—such as unusual dispute patterns, large amounts, or potentially valid duplicate charge claims—Union may reach out to your team for input. If contacted, you’ll have two options:

Submit evidence (Union will also transfer the $15 counter dispute fee)
Accept the dispute immediately

Refund Blocks & Subscriptions

To help avoid duplicate refunds, Union will automatically block refund actions on any order with a pending chargeback.

If a dispute is filed on a subscription payment, Union will cancel the subscription when the dispute is received to prevent future billing. If the customer later confirms the dispute was a mistake, they’ll need to purchase a new pass to continue registering for classes.

After the Dispute is Resolved

Once the cardholder’s bank makes a final decision, here’s what happens:

If the Bank Rules in your Favor (Dispute Won):

The dispute amount is returned
The $15 counter fee is refunded (Union will transfer the $15 back to your Stripe account)
The $15 processing fee is not refunded

In other words: even if you win, your net loss is $15. At that point, you may choose to reconnect with your customer to move forward with the agreed path.

If the Bank Rules in the Customer's Favor (Dispute Lost):

No additional changes occur — the payment and both fees have already been deducted