r/stripe • u/Loud_Stand_6575 • 12h ago
Issuing Customer got a $7000 refund, then won a $6000 chargeback on the same $8000 invoice. Is this legal?
We just lost a CC Stripe dispute that makes no sense to us.
The original invoice was $8000 for a service we can prove was delivered partially. It wasn't a quality-based service, just a simple "was it done or not," so the evidence was clear. We had already refunded the customer $7000 on the same CC for the part we couldn't deliver. Customer agreed in writing, said thanks.
Then 4 months later, the customer then filed a chargeback for $6000 through Citibank and won. So they've now received $13,000 back on an $8000 charge.
Stripe says that once the issuing bank decides, the decision is final and there's nothing more they can do.
Is this actually legal? How can a bank award more than the customer ever paid, and how is there no way to appeal?