Challenge

Wordtune by AI21 Labs, an AI writing assistant, has been using Stripe Payments to process customer payments since 2020 and implemented Stripe’s fraud prevention solution, Stripe Radar, when it experienced a rise in chargeback issues. Left untouched, these chargebacks could exceed the accepted thresholds dictated by Visa and Mastercard, which would place Wordtune in fraud monitoring programmes. Exceeding these thresholds could also put its Stripe account at risk for suspension, which could have led to lost revenue, downtime, and damage to the company’s financial standing. To mitigate its placement in fraud or dispute monitoring programmes, Wordtune needed a more robust and reliable solution to prevent chargebacks.

But managing chargebacks in-house was too time-consuming for the Wordtune team and pulled them away from larger growth objectives. Wordtune wanted a solution for chargebacks that would free up its internal resources without adding to its headcount.

“I spent a full month managing disputes myself, which was slow and unproductive,” said Matt Lewis, head of User Operations for Wordtune. “Headcount is always the biggest expense we have, and I realised it wasn’t scalable to do it ourselves. We needed an automated solution that could grow with us.”

With over two million active monthly users, Wordtune wanted its chargeback solution to integrate seamlessly with Stripe. It sought a partner that could reduce friction for its customers as much as possible.

Solution

As an existing Stripe customer, Wordtune had access to Stripe Apps, allowing the team to find third-party solutions that Stripe doesn’t offer. Wordtune chose to install the Chargeflow app, a native, automated chargeback management solution from the experts at Chargeflow. A Stripe partner, Chargeflow was one of the first apps on the Stripe App Marketplace to offer chargeback prevention and recovery solutions.

“Our mission is to help Stripe customers grow seamlessly,” said Ariel Chen, CEO and co-founder of Chargeflow. “We solve the problem of fraudulent orders and simultaneously increase revenue by accepting more transactions securely. Furthermore, we increase profits by recovering significantly more chargebacks. Continuous monitoring ensures that merchants enjoy sustained business growth and high scalability without worrying about fraud or profit losses.”

Chargeflow provided a Stripe-powered, click-and-go solution that Wordtune could switch on without any heavy lifting. It seamlessly syncs payment data between Stripe and Chargeflow to automate the chargeback evidence creation, and identify, mitigate, and prevent fraud – reducing the burden on Wordtune’s in-house team and opening up developer time for other business pursuits.

“Chargeflow set up an extremely easy, low touch, integrated solution,” said Lewis. “In two clicks, it was connected to our Stripe account and started automatically challenging disputes.”

Results

Fewer chargebacks, more revenue

Within several months, Chargeflow helped Wordtune reduce its dispute rate by 29.7%, reduce fraudulent disputes by 33.5%, and achieve a 5.4x increase in chargeback recovery rate – all while growing its revenue. “The simplicity of Chargeflow’s solution is phenomenal,” said Lewis. “Recovering and preventing most of our chargebacks has equalled a significant amount of money.”

AI-powered solution with insights and reporting

With generative AI and machine learning capabilities, Chargeflow swiftly processes and generates customised dispute evidence for every chargeback, providing Wordtune with 360-degree insights. It also gives businesses a single source of truth for their current chargeback situation and forecasts the future of their affected cash flow.

As Lewis says, “Chargeflow is designed in a really elegant way. The Dashboard shows me everything going on and provides convenient reports that I can take back to the team. It’s fully automated and completely hands-off.”

Better user experience and brand trust

Chargeflow’s solution is so integrated into Wordtune’s existing platform that customers don’t even notice it – it just works. Using an app that’s built on Stripe’s trusted framework means Wordtune’s customers enjoy a smoother user experience, backed by a trusted financial ecosystem.

About Partner

Chargeflow is a full-service, AI-powered automated chargeback platform offering seamless Stripe integration. Through its Chargeflow app for Stripe, the company helps its customers eliminate chargebacks and reclaim lost revenue. Learn more about Chargeflow.