Dropship.io cut their dispute rate by 94% using Chargeback

Challenge

Dropship.io, a fast-growing e-commerce platform, was processing thousands of online transactions daily across Stripe. With this growth came a serious problem: their dispute rate was climbing dangerously close to 1%. At that level, businesses are flagged by Visa and Mastercard as high-risk, leading to higher processing fees, penalties, and even the possibility of losing their merchant accounts. For an online seller scaling quickly, even a small increase in chargebacks can put the entire business model at risk. Dropship.io needed a proven chargeback prevention solution to keep dispute rates low while continuing to grow.

Solution

To tackle the rising risk of chargebacks, Dropship.io partnered with Chargeback.io, the leading platform for automated dispute prevention. By activating real-time Ethoca alerts (Mastercard) and Verifi alerts (Visa), every dispute attempt was detected the moment a customer contacted their bank. Instead of waiting for the chargeback to process, Chargeback.io automatically refunded the flagged transactions, preventing disputes from being recorded against the merchant. This integration provided seamless protection, full visibility through a centralized dashboard, and reduced manual workload for the Dropship.io team. By leveraging chargeback alerts technology, Dropship.io turned a high-risk situation into a scalable, automated process.

Result

The results were dramatic. Within just days, Dropship.io reduced its dispute rate by more than 90%, dropping from nearly 1%—a level considered dangerous—to well under the thresholds required by Visa and Mastercard. This major reduction in chargebacks protected their Stripe account, lowered operational costs, and strengthened trust with Stripe. Beyond financial savings, the ability to stop chargebacks before they escalated gave Dropship.io the freedom to focus on growth and customer experience without fear of penalties or account freezes. With Chargeback.io’s chargeback prevention alerts running 24/7, Dropship.io now operates with stronger margins, better processor relationship, and a stable foundation for long-term scaling.

“Keeping disputes under control was crucial for scaling our business. Chargeback.io’s platform made it simple to manage chargebacks proactively, allowing us to protect revenue while giving our team the freedom to focus on growth.”

Christoffer Hartman
CFO at Dropship.io

Final thoughts

Dropship.io’s success story shows how powerful chargeback prevention alerts can be for fast-growing e-commerce businesses. By using Ethoca and Verifi alerts through Chargeback.io, they transformed a rising dispute problem into a reliable system that keeps their dispute rate well below 1%. For any online merchant looking to scale safely, chargeback alerts are not just a safeguard—they’re a growth tool.