Glossary
Chargeback
Also called dispute, payment dispute
A chargeback happens when a reader asks their card's bank to reverse a payment, and the bank takes the money back from the seller while it decides.
What it means
A reader who does not recognize a charge, or says they never got the book, can dispute the payment with their bank. Stripe calls this a dispute; the bank’s action is the chargeback. The disputed amount and a dispute fee come out of the seller’s Stripe balance. Stripe says the fee for receiving a dispute is not refunded, outside Mexico, even if you win.
You can answer with evidence. Stripe says sellers usually have 7 to 21 days to respond, depending on the card network, and the whole process can take two to three months. The reader’s bank decides.
A fantasy author might get a dispute because the store name on the card statement did not look like their pen name. A nonfiction author selling a course workbook might get one from a reader who could not find the download email.
Why it matters when you sell direct
When you are the seller, disputes come to you. They are rare for books, but each one costs a fee on top of the sale. Most can be avoided: a clear name on the card statement, quick delivery and a fast refund when a reader asks.
How Lanternbee handles it
You connect your own Stripe account and you are the seller, so a dispute is raised on your Stripe account and you answer it in Stripe. Lanternbee helps you avoid them: readers get their download link by email straight away and can sign in to their library at any time to download again.