Fidro can automatically refund transactions that are likely fraudulent — before the customer files a chargeback. This guide explains how to configure auto-refund rules.
Why auto-refund?
Chargebacks cost more than refunds. A chargeback typically incurs:
- The transaction amount (returned to the customer)
- A dispute fee from Stripe ($15–$25)
- Damage to your dispute rate (too many chargebacks can get your Stripe account shut down)
By auto-refunding high-risk transactions, you avoid the dispute fee and protect your chargeback ratio.
Setting up auto-refund
Go to Account Settings and find the Chargeback Prevention section.
Auto-refund high-risk transactions
Toggle this on to automatically refund transactions that score above your refund threshold (default: 71).
When enabled:
- A payment succeeds on Stripe
- Fidro analyses it and scores it above your threshold
- Fidro issues a full refund via the Stripe API
- The transaction is marked as "Refunded" in your dashboard
- You receive an email notification (if notifications are enabled)
Auto-refund on dispute
Toggle this on to automatically refund when Stripe notifies you of a chargeback dispute (charge.dispute.created).
When enabled:
- A customer files a dispute with their bank
- Stripe sends the dispute event to Fidro
- Fidro issues a full refund (if not already refunded)
- The transaction is marked as "Disputed" and "Refunded"
- You receive an email notification
Tip: Auto-refunding on dispute can help resolve the dispute in your favour, as Stripe may automatically close disputes when you issue a refund.
Adjusting thresholds
The default thresholds are:
| Threshold | Default | Controls |
|---|---|---|
| Refund threshold | 71 | Scores ≥ this get the "refund" recommendation (and auto-refund if enabled) |
| Review threshold | 41 | Scores between review and refund thresholds get "review" recommendation |
To change these, update the values in your chargeback settings. The review threshold must be lower than the refund threshold.
Conservative approach (fewer false positives): Set refund threshold to 80+ Aggressive approach (catch more fraud): Set refund threshold to 60–70
Notification emails
Add one or more email addresses to receive notifications for:
- High-risk transaction alerts — When a transaction scores above your refund threshold
- Dispute alerts — When a chargeback dispute is filed
Separate multiple emails with commas: you@company.com, finance@company.com
Manual refund
If auto-refund is disabled, you can still refund individual transactions from the Transactions page. Click on a transaction and use the "Refund this transaction" button.